REG - Mirriad Advertising - Full year trading update

Mirriad AdvertisingAnnouncement

24/01/2024 07:15

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RNS Number : 6830A  Mirriad Advertising PLC  24 January 2024

24 January 2024

 

Mirriad Advertising plc

("Mirriad" or the "Company")

 

Full year trading update

 

Mirriad, the leading in-content advertising company, provides the following
trading update for the year ended 31 December 2023 ("FY 2023"), alongside a
look-ahead for 2024.

 

FY 2023 highlights

 

·    Revenue of approximately £1.8m (FY 2022: £1.5m), representing:

o  a 20% increase on FY 2022; and

o  a 31% increase on FY 2022 on a like-for-like basis (excluding revenue from
discontinued China operations).

 

·    Agreements in place with supply side partners representing c25% of
the total US TV advertising market, up from 8% in Q3 2023

o  substantive negotiations ongoing with two further US majors, representing
an additional 30% of US TV advertising market.

 

·    Programmatic testing continuing with five partners and is on-track to
contribute to revenue starting in H1 2024.

 

·    Cash and cash balances at 31 December 2023 of £6.1m (30 June 2023:
£9.8m).

 

Operational update

During the year, the Company announced several new master license and service
agreements ("Agreements") with top tier US entertainment companies. When
combined with the expansion of some existing Agreements, these new Agreements
mean the 'Mirriad-inside' strategy of integrating in-content advertising as a
new standard advertising format across the entire TV and video media ecosystem
is now gaining significant traction, ahead of plan.

 

By mid-2023, market building in the US had resulted in a total Mirriad roster
of over 60 partners, representing around 8% of the US TV advertising market.
This increased in Q4 2023, with the addition of a further 17% share via
Agreements with two significant new partners. The Company is in active
negotiations with two more majors in the US representing an additional 30+% of
potential market share, and there is the prospect of further notable additions
in the first half of 2024. This represents a phase-shift in the scale of new
partners - Mirriad is now signing US 'majors' and 'super-majors'.

 

Accessing this significant level of market share with partners who distribute
premium content to large audiences across their linear channels and streaming
platforms signifies an important moment in scaling the new advertising format
that Mirriad offers. The Company is also at various stages of programmatic
integration with five key media players in the US market. Activation with the
first of these partners is expected to occur in H1 2024.

 

2023 trading update

Total revenue for FY 2023 is expected to be approximately £1.8m, representing
a 31% increase on FY 2022 (on a like-for-like basis excluding revenue from
China). Approximately £1.4m of this was generated from the all-important US
market. The Company closed the year with a cash balance of £6.1 million, with
outturn average monthly cash burn in the second half slightly improved over
management expectations with efficiency improvements achieved ahead of plan.

 

During 2023, the Company increased the number of advertisers it worked with
from 59 to 68, an uplift of 15%. The number of repeat advertisers also had a
significant gain of 61%, from 13 to 21.

 

Stephan Beringer, CEO at Mirriad, said: "Closing these service Agreements with
top-tier US entertainment companies in 2023 shows that Mirriad is entering the
long-planned adoption phase with key industry players. We've completed the
'hardest yards' in building our proposition and our leading market position.
The resulting route to scale is now in sight.

 

"Mirriad's approach can leverage the significant market power of these tier
one partners via their blockbuster content slates and their streaming
platforms, with delivery ultimately underpinned by automated programmatic
sales."

 

Nic Hellyer, CFO at Mirriad, said: "Our operating profile is changing fast.
Revenue generated in 2023 reflected the fact that the business was still
operating in 'manual' mode, with less than 10% of the key US market. With the
majority of that market now under contract or in serious discussions, a firmer
starting pipeline for revenue and multiple programmatic integrations underway
to change the way inventory is sold, we are focused on delivering a
substantial improvement in performance in the current year."

 

 

ENDS

 

 

For further information please visit www.mirriad.com (http://www.mirriad.com)
or contact:

 

 Mirriad Advertising plc                                                                       c/o Charlotte Street Partners

 Stephan Beringer, Chief Executive Officer

 Nic Hellyer, Chief Financial Officer

 Nominated Adviser & Broker:                                                                   Tel: +44 (0)20 3328 5656

 Allenby Capital Limited

 James Reeve/Lauren Wright (Corporate Finance)

 Guy McDougall/Matt Butlin (Sales and Corporate Broking)

 Financial Communications:

 Charlotte Street Partners

 Tom Gillingham                                                                                Tel: +44 (0) 7741 659021

 Fergus                                                                                        Tel: +44 (0) 7590 049023
 McGowan

 

Notes to Editors

 

About Mirriad

 

The leader in virtual product placement and in-content advertising, Mirriad's
multi-patented and award-winning platform dynamically inserts products and
brands into Television, SVOD/AVOD, Music, and Influencer content. Mirriad
creates net-new revenue opportunities for content owners with an ad format
that virtually integrates brands in entertainment content, drives exceptional
performance for advertisers and dramatically improves the viewing experience.

 

Mirriad currently operates in the US, Europe and India.

 

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