REG - Mirriad Advertising - Trading update for the six months to 30 June 2023

Mirriad AdvertisingAnnouncement

18/07/2023 07:00

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RNS Number : 2740G  Mirriad Advertising PLC  18 July 2023

18 July 2023

 

 

Mirriad Advertising plc

 

("Mirriad" or the "Company")

 

 

Trading update for the six months to 30 June 2023

 

 

Mirriad, the leading in-content advertising company, announces the following
trading update for the six months ended 30 June 2023 ("the period").

 

H1 headlines

 

·    Revenues for H1 modestly ahead of 2022 at £592k (H1 2022 £577k)
following the final exit from China

·    Revenues from continuing operations +26% at £576k in H1 2023 (H1
2022 £458k)

·    Gross proceeds of fundraising closed in May 2023 of £6.3m (net
£5.7m)

·    Closing cash at the end of June 2023 £9.8m (June 2022 £17.7m)

·    Restructuring plans to substantially reduce the monthly net cash burn
completed by the end of May 2023, incurring restructuring costs of £311k

 

The Board is pleased that the Company has shown an increase in overall H1
revenue compared to 2022.  As previously announced in the fundraising on 16
May 2023 this is against a backdrop of significant and ongoing US advertising
market pressure which started in Q4 2022 and continued in H1 2023 with
campaigns taking longer to book and being booked closer to air date than
historically.

 

The US advertising market had shown year on year declines for each of the 10
months to April 2023 and this has impacted the Company's US revenues, which
showed a year-on-year reduction to £313k (H1 2022 £418k).

 

Revenues in EMEA increased materially to £252k (H1 2022 £37k) driven by
growth in the Company's German business and the acquisition of a new client in
the Middle East.

 

The Company undertook a significant restructuring during H1 2023 addressing
both staff and non-staff costs.  In particular there was the final closure of
its Chinese operations, as previously announced, and a cost reduction
programme across the remaining business.  Ultimately this resulted in staff
redundancies in all of the Company's continuing operating companies and a
material reduction in US headcount, which reduced from 16 to 11 staff at the
end of May 2023. Overall headcount in continuing operations reduced from 112
at the end of April to 91 at the end of June 2023.

 

Outlook

 

Overall, the Board is encouraged by the forward sales pipeline in the US and
anticipates a pick-up in US activity in H2 2023.  The Board also notes that
Mirriad revenues are historically seasonal with significantly higher revenue
expected in H2 compared to H1.  The Company anticipates a similar pattern of
revenue to FY2022 with H2 revenue approximately twice that of H1.

 

Integration work, testing and partnership discussions continue with multiple
large entertainment companies in the US and the Board anticipates that one or
more of these companies will ultimately contract with Mirriad for the
provision of services by the end of 2023.  The Company remains on track to
deliver a fully programmatic service to US customers with programmatic
revenues expected in 2024.

 

The Company will provide further updates in its interim results, which will be
released in the week commencing 21 August 2023.

 

Stephan Beringer, CEO of Mirriad, said: "We are in line with our internal
revenue expectations despite an adverse macro environment, the fact that 2023
is our first year without any meaningful revenue from China, and our focus on
programmatic as we move from the market building phase.

 

To date our revenue profile is based on a manual sales process, and we have
flagged 2023 as the year we initiate the transition from this first adoption
phase to programmatic selling, which is expected to open up true scale.  We
anticipate US momentum gathering in H2, building to programmatic revenues in
this market in 2024."

 

 

ENDS

 

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

 

 Mirriad Advertising plc                                                                                                         Tel: +44 (0)207 884 2530

 Stephan Beringer, Chief Executive Officer

 David Dorans, Chief Financial Officer

 Nominated Adviser & Broker:                                                                                                     Tel: +44 (0)20 7886 2500

 Panmure Gordon

 James Sinclair-Ford / Daphne Zhang (Corporate Advisory)

 Rupert Dearden (Corporate Broking)

 Financial Communications:

 Charlotte Street Partners

 Tom Gillingham                                                                                                                  Tel: +44 (0) 7741 659021

 Fergus                                                                                                                          Tel: +44 (0) 7590 049023
 McGowan

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR"). Upon the publication of this
announcement, this inside information is now considered to be in the public
domain.

 

Notes to Editors

 

About Mirriad

 

Mirriad's award-winning solution unleashes new revenue for content producers
and distributors by creating new advertising inventory in content. Our
patented, AI and computer vision technology dynamically inserts products and
innovative signage formats after content is produced. Mirriad's market-first
solution seamlessly integrates with existing subscription and advertising
models, and dramatically improves the viewer experience by limiting commercial
interruptions.

 

Mirriad currently operates in the US, Europe and the Middle East.

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