REG - SEEEN PLC - Contract Wins and 3Q Trading Update

SEEENAnnouncement

02/12/2021 07:00

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RNS Number : 3009U  SEEEN PLC  02 December 2021

 

SEEEN plc

("SEEEN" or the "Company")

 

 Customer Wins and 3Q Trading Update

 

SEEEN plc (AIM: SEEEN), the global media and technology platform offering
proprietary AI products that harvest Key Video Moments efficiently for brands,
creators and publishers is pleased to announce recent customer wins for its
technology products and a trading update for the 9 months to 30 September 2021
("Q3").

Key Video Moments enable SEEEN's customers to achieve higher revenue yield
from digital marketing spend and to gain e-commerce opportunities as audiences
focus on the relevant "moment" to make purchase decisions. Today's wins build
upon the Group's 3Q trading results and provide momentum for finishing 2021 in
strong fashion.

The Group's multichannel video network business unit ("MCN") also continues to
drive revenue as a standalone business.  Moreover, it has proved to be a
valuable test-bed for the Group's technology products. As identified below,
the Group's MCN is showing greater revenue yield from its audience views due
to stronger engagement.

B2B Wins

Major Publisher  The Company is pleased to announce that it has recently
signed a commercial agreement with a major global publisher. The publisher
attracts consumer audiences interested in current events. The publisher will
use SEEEN's video technology and expertise to optimise its video collection to
increase viewership and generate improved YouTube ad revenue from more
relevant Key Video Moments and higher audience engagement. SEEEN's AI
technology will automate the production of relevant moments from the
publisher's library. Using the Group's Jetstream offering, the publisher will
also be able to remix Key Video Moments to create new videos and video streams
leading to enhanced engagement and advertising revenues, including for YouTube
shorts.

This win builds on SEEEN's strategy to sell to publishers. As recently
announced, the Group gained a financial markets publisher as a customer, which
seeks to feed its audience more relevant Key Video Moments regarding select
stocks or analyst comments to drive increased subscriptions to its offering.

The Company continues its discussions with several other publishers, including
legacy print and web publishers, as well as live streaming providers.

Major Sports Channels for MCN  SEEEN has also recently signed its first
professional sports club to add content and viewers to its MCN which is
already known for sports and automotive content. The Group will be able to use
its technology, especially CreatorSuite, to momentize the team's videos and
drive audience engagement. Similar to its pilot at the Rugby World Cup, the
Group's technology can be used to drive e-commerce and merchandising
opportunities.

 

Q3 Highlights

Financial

·    Group revenues of $7.0m, up 8% (Q3 2020: $6.5m)

o  MCN revenues of $6.9m, up 7% (Q3 2020: $6.5m)

o  First technology revenues of $0.1m related to CreatorSuite

·    MCN revenue growth reflects significantly increased RPM (revenue per
thousand views), up 40% to $1.20 (Q3 2020: $0.87), despite viewing drop of 24%
to 10.1bn (Q3 2020: 13.3bn), reflecting higher quality YouTube channel
partners and more engaged viewers

·    Adjusted profit before tax* continues to be in line with market
expectations

·    Strong balance sheet with $3.0 million of net cash, which enables the
Company to continue executing its "Go to Market" strategy

* Adjusted for amortisation of intangible assets and share based payments.

Outlook for 2021-22

·    Technology Product Business Unit

o  Implementations of CreatorSuite and JetStream for B2B customer wins during
2021 will drive increased revenues

·    MCN Business Unit

o  Continuing FY21 MCN focus on profitability culling out low quality creator
channels

o  Focus on adding new higher quality YouTube channel partners both for
YouTube optimisation and integration with SEEEN technology

·    Accelerate growth strategy

o  Add further shareholder value through opportunistic, accretive
acquisitions of digital content, analytics and advertising companies

 

Dr Patrick DeSouza, Chairman, commented: "We are delighted to gain additional
traction with B2B sales for our AI offerings. Recent wins with large
publishers and a professional sports team enable us to add referenceable
customers in order to accelerate further wins from our sales pipeline. We
appreciate the support of our shareholders as we execute our "Go to Market"
strategy. We look to growing our video technology platform organically through
deploying our AI product offerings through our MCN and to publishers and
brands. We also look to be opportunistic to add shareholder value through
accretive acquisitions since global consumer demand for the consumption of Key
Video Moments is showing a significant increase."

 

Market abuse regulation

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/201 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 ("MAR").

 

 SEEEN
 Patrick DeSouza, Chairman                                   Tel: +1 203 654 5426
 Todd Carter, CEO
 Adrian Hargrave, CFO                                        Tel: +44 (0)7775 701 838

 Panmure Gordon                                              Tel: +44 (0)20 7886 2500

 (Financial Adviser, Nominated Adviser & Joint Broker)
 Alina Vaskina / Harriette Johnson (Corporate Advisory)
 Rupert Dearden (Corporate Broking)

 Dowgate Capital (Joint Broker)                              Tel: +44 (0)20 3903 7721
 Stephen Norcross

 

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