TIDMMIRA
RNS Number : 8661J
Mirada PLC
07 December 2018
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
`
7 December 2018
Mirada plc
("Mirada", the "Company" or the "Group")
Interim results for the six months to 30 September 2018
Mirada plc (AIM: MIRA), a leading provider of integrated
software and solutions for Digital TV operators and broadcasters,
announces its unaudited interim results for the six months to 30
September 2018.
Financial Highlights
-- Revenue of $5.57 million during the six months to 30
September 2018 (H1 2017: $3.47 million), a 61% increase on the same
period last year. The main drivers for the increase were additional
professional services for izzi Telecom during the World Cup and a
significant increase in the rate of installation of new licences,
made possible by the launch of Mirada's technology over new
customer tiers at izzi Telecom, in addition to the increase of OTT
licences during the World Cup.
-- EBITDA* loss of $0.12 million (H1 2017: $1.20 million loss).
The improvement is due to a $2.20 million increase in revenue,
partially offset by a $1.12 million increase in sales, marketing
and operational costs.
-- Net Debt** decreased to $6.52 million at 30 September 2018
(31 March 2018: $11.70 million). The decrease is due to the
capitalisation of the GBP1.7 million loan facility announced on 28
November 2017 and the GBP3.0 million received in cash on 28
September 2018 for the capital increase approved by the General
Meeting held on 4 October 2018, which also approved the
capitalisation of the GBP3.0 million loan facility announced on 7
March 2018 that reduced net debt further after the half-year period
end.
* EBITDA is defined as earnings before interest, tax,
depreciation, amortisation and share-based payments
** Net Debt is defined as Gross Debt minus Cash
Operational Highlights
-- As a result of the continued relationship with izzi Telecom,
and the successful deployment of our Iris multiscreen solution, the
customer decided to extend the deployment of the solution (Iris
Inspire Multi-Tier) over a wider segment of its customer base from
March 2018. Mirada's product is now being installed over the middle
and premium tiers, which has resulted in higher monthly
installations and an increase of more than $1.0m in licence fees in
the first six months of this financial year compared to the same
period of the prior financial year.
-- izzi Telecom bought OTT ("over-the-top" TV) rights for the
World Cup in Mexico. Mirada strengthened the capacity of the OTT
platform and successfully supported a 39% increase in active OTT
users to 1.3 million devices, for 4.8 million hours and a 97%
increase in consumption of Live TV on OTT.
-- As of 30 September 2018, izzi Telecom had deployed in excess
of 1,500,000 set-top boxes. bringing Mirada's technology into more
than 750,000 households.
-- The commercial roll-out of our deployments with ATNi in the
Caribbean and with Digital in Bolivia are expected in the next few
weeks, having finished the core installation.
Post period highlights
-- The General Meeting held on 4 October 2018 approved the
capitalisation of the GBP3.0 million loan facility announced on 7
March 2018, and the additional GBP3.0 million equity investment
which was received in cash on 28 September 2018 and held within
other liabilities at 30 September 2018. This funding was provided
by our largest shareholder, Kaptungs Ltd ("Kaptungs"), showing its
continued commitment to the business model.
-- On 7 December 2018, the Company announced a contract win with
Skymedia Corporation LLC, a subsidiary of Skytel LLC, a mobile
phone service and fixed service provider, including IPTV, in
Mongolia, for the deployment of a cloud-based OTT platform with our
Iris software.
-- On 27 November 2018, the Company announced a reselling
contract with Indra for the promotion and commercialisation of
Mirada's products, with an initial focus on some territories of the
Asian market. Indra (www.indracompany.com) is one of the leading
global technology and consulting companies and the technological
partner for core business operations of its customers worldwide. It
is a world-leader in providing proprietary solutions in specific
segments in Transport and Defence markets, and the leading firm in
Digital Transformation Consultancy and Information Technologies in
Spain and Latin America.
Commenting on the outlook for the Group, José Luis Vázquez, CEO
of Mirada, said:
"Mirada is showing healthy growth through the increased adoption
of its technology across its customer base, resulting in increased
revenues and margins, and providing return on the investment the
Group is making on its products. Our level of recognition in the
market has increased, demonstrated by the engagement with Indra for
a global collaboration in the Pay TV business and our first
contract win in Asia with Skytel. These are promising signs that
demonstrate how robust our proposition is and we expect more deals
to come in the next few months."
Enquiries:
Mirada plc +44 (0) 207 868 2104
José Luis Vázquez, Chief investors@mirada.tv
Executive Officer
Gonzalo Babío, Finance Director
Newgate Communications +44 (0) 207 653 9850
Bob Huxford mirada@newgatecomms.com
Helena Bogle
Ed Treadwell
------------------------------------------
Allenby Capital Limited
(Nominated Adviser and Broker)
Jeremy Porter / Liz Kirchner (Corporate
Finance)
Graham Bell (Equity Sales) +44 (0) 203 328 5656
------------------------------------------
Chief Executive Officer's Statement
Overview
I am pleased to present the Group's interim financial results
for the six months ended 30 September 2018.
This period has seen the consolidation of Mirada's model, with
an extended usage of our products across our customer base.
Mirada's technology is proving very reliable and our level of
recognition in the Pay TV business is resulting in the deployment
of our Iris technology over new customer tiers. The extensive
promotion of our OTT product during the FIFA World Cup to izzi
Telecom customers was remarkable and exceeded the expectations of
the market. Our goal was to deploy a high-quality product that
fulfills the requirements of increasingly sophisticated users, and
we believe that we have a first-in-class solution which is gaining
traction with present and potential new deployments.
The Company has progressed in negotiations with new customers
for our Iris solution, and we are pleased to see that these efforts
are bearing fruit, with the recent announcement of our first deal
in Asia, with Skytel in Mongolia. Mirada is involved in an
increased number of opportunities, and we expect more announcements
to follow as we solidify some of those. Added to the increased
sales and marketing efforts, we are also pleased to count on the
confidence of a big partner like Indra, who will extend Mirada's
reach. We expect this relationship to be beneficial for the Company
in the short to medium term.
During this period, the Company was also able to secure the
funding required to deliver its business model. With aggregate
equity injections of around USD 10 million, we believe that our
financial strength will no longer be a barrier for our customers to
believe that we are the best possible partner for their future
deployments. We are grateful for the support of our shareholders,
partners, customers and employees, and we are glad to see that,
with their help, the Company is starting to unfold its bright
potential.
Customer rollouts
Our business in Mexico with the Televisa Group, the owner of
izzi Telecom, returned to normality after the uncertainties of
previous periods, showing a record level of activity and revenues
as a result of the increased level of licences and the efforts that
led to a massive and successful deployment of our OTT technology
for availability to izzi Telecom's multi-million customer base
during the FIFA World Cup. The solution performed despite the
technical challenges of such a huge deployment like that. This also
resulted in a substantial usage by izzi Telecom OTT customers, with
a 39% increase in active OTT users to 1.3 million devices, for 4.8
million hours and a 97% increase in consumption of Live TV on OTT.
At 30 September 2018, the number of izzi Telecom households using
Mirada's technology was over 750,000, with 1,500,000 set-top boxes
deployed to date, which now represents nearly 19% of izzi Telecom's
installed base. We are seeing the increased adoption of our product
over new customer tiers, which should result in continued licence
revenue growth for Mirada, positively impacting our turnover.
Our deployments with ATNi in the Caribbean and with Digital in
Bolivia are on track and having finished the core installation, we
expect to announce the commercial roll-out of both customers in the
next few weeks. This will result in a continued and growing
addition of recurrent licence-fee revenues, as these customers are
the first to follow our SaaS model. We are keen to see these
customers grow with our solution for a successful deployment of the
contracts over coming years.
New customer wins
Post period-end, on 7 December 2018, the Company announced a
deal with Skytel in Mongolia. Skytel is the first customer for
Mirada in the Asian market, and an influential player in this
fast-developing region of the world. Skytel will start working with
Mirada on the deployment of its OTT product, allowing Mongolian
consumers to enjoy their live and on-demand content on their
computers, tablets and smartphones. Skytel's aim is to further
extend this collaboration to other devices (such as internet
protocol set-top boxes) once this deployment is finished, which is
expected in the current financial year. Skytel was the customer of
one of Mirada's largest competitors worldwide and proves a valuable
reference for other operators willing to enhance their present
solutions with the superior user experience provided by our
Company.
Funding requirements
The Board successfully agreed with Kaptungs, our major
shareholder, the issue of 770 million new shares at 1p per share
for an aggregate equity injection of GBP7.7 million, comprised of
the capitalisation of two loans of GBP1.7 million and GBP3.0
million each, plus an additional subscription of GBP3.0 million in
cash. The funds for the new subscription were received before the
reporting period end, and this transaction was approved by
shareholders on 5 October 2018.
Financial Overview
Turnover was $5.57 million in the half-year period (H1 2017:
$3.47 million), representing a 61% increase against the same period
last year. The main drivers for the increase were $1.1 million in
improvements for izzi Telecom's OTT platform during the World Cup
and $1.4 million of increased licences, of which $1.0 million are a
result of users of Iris Inspire Multi-Tier and $0.4 million are
from the addition of OTT licences during the World Cup.
Over the half-year period, our business in America accounted for
87% of total revenues (H1 2017: 67%). The Board expects that
turnover from other regions will represent a higher proportion
going forward, assuming that negotiations outside America generate
new contract wins.
EBITDA loss was $0.12 million in the half-year period (H1 2017:
$1.20 million loss), with a $1.08 million improvement due to a
$2.20 million increase in revenue, partially offset by a $1.12
million increase in sales, marketing and operational costs. EBITDA
in this context is defined as earnings before interest, tax,
depreciation and amortisation. Operating losses were $1.97 million
(H1 2017: loss of $2.79 million). Increased costs were mainly due
to the larger operational team required for the deployment of the
new contracts signed in the last financial year 2018.
Loans and borrowings decreased by $2.66 million to $10.98
million (31 March 2018: $13.64 million). Of these facilities, $0.51
million were long-term bank loans, $1.39 million were long-term
zero-coupon loans from Spanish Government entities, $2.17 million
were short-term credit lines, $0.72 million were short-term bank
loans, $0.25 million were short-term zero-coupon loans from Spanish
Government entities, $1.43 million were short-term invoice
discounting facilities and $4.51 million was the loan from Kaptungs
(which has since been capitalised). Cash and cash equivalents
increased to $4.45 million at the end of the period (31 March 2018:
$1.94 million). Net Debt decreased to $6.54 million (31 March 2018:
$11.70 million).
On October 4(th) , 2018, a General Meeting approved the
capitalisation of the GBP3.0 million loan facility announced on
March 7(th) , 2018. Net debt was reduced by $4.30 million
accordingly.
Outlook
The Company has been able to strengthen its financial position
thanks to the support of its major shareholder, which places Mirada
in a much stronger position to successfully conclude some of the
commercial negotiations in place. As a result, the Company has been
able to secure its first relevant deal in Asia, and new commercial
agreements for the distribution of its products and services, with
special mention to the new agreement with Indra. We are confident
that this strengthened status will greatly benefit
shareholders.
Additionally, current contracts are developing in a very
satisfactory way with a substantial increase in Company revenues,
especially in high margin areas like subscriber-based licence fees.
As the new deals mature, we will be able to add recurrent licence
fees to the turnover. This helps again having a high level of
visibility on revenues for the future, which will only improve with
positive outcomes from the commercial discussions in place.
We expect shortly to add new customers to the growing list of
operators who benefit from our superior technology. We are thankful
for the continued support from our stakeholders, and we believe
that we are on the right path towards the successful development of
our growth strategy.
Jose Luis Vazquez
Chief Executive Officer
7 December 2018
Consolidated income statement
6 months ended 6 months ended
30 September 30 September
2018 2017
(Unaudited) (Unaudited)
$000 $000
Revenue 5,574 3,467
Cost of sales (365) (361)
------------------------------- ----- --------------- ---------------
Gross profit 5,209 3,106
Depreciation (47) (29)
Amortisation (1,808) (1,554)
Share-based payment charge (35) (35)
Other administrative
expenses (5,293) (4,273)
-------------------------------------- --------------- ---------------
Total administrative
expenses (7,183) (5,891)
Operating loss (1,974) (2,785)
Finance income 59 2
Finance expense (400) (135)
Loss before taxation (2,315) (2,918)
Taxation (109) 91
Loss for period (2,424) (2,827)
-------------------------------------- --------------- ---------------
The above amounts are attributable to the equity holders of the
parent Company.
Consolidated statement of comprehensive income
6 months ended 6 months ended
30 September 30 September
2018 2017
(Unaudited) (Unaudited)
$000 $000
(Loss) for the period (2,424) (2,827)
Other comprehensive
loss:
Currency translation
differences (80) 760
--------------------------- --------------- ---------------
Total other comprehensive
profit (80) 760
Total comprehensive
loss for the year (2,504) (2,067)
--------------------------- --------------- ---------------
Consolidated statement of financial position
6 months ended Year ended
30 September 31 March
2018 2018
(Unaudited) (Audited)
$000 $000
Goodwill 6,104 6,492
Other Intangible assets 6,384 7,072
Property, plant and equipment 200 247
Other Receivables 435 308
--------------------------------------- --------------- ------------
Non-current assets 13,123 14,119
--------------------------------------- --------------- ------------
Trade receivables 4,553 4,484
Cash and cash equivalents 4,453 1,937
--------------------------------------- --------------- ------------
Current assets 9,006 6,421
Total assets 22,129 20,540
--------------------------------------- --------------- ------------
Loans and borrowings (4,558) (4,246)
Related parties loans and interests (4,510) (6,917)
Trade and other payables (1,990) (2,320)
Deferred income (1,902) (1,360)
Other liabilities (3,910) -
--------------------------------------- --------------- ------------
Current liabilities (16,870) (14,843)
--------------------------------------- --------------- ------------
Net current (liabilities) (7,864) (8,422)
--------------------------------------- --------------- ------------
Total assets less current liabilities 5,259 5,697
--------------------------------------- --------------- ------------
Interest bearing loans and
borrowings (1,908) (2,477)
--------------------------------------- --------------- ------------
Non-current liabilities (1,908) (2,477)
--------------------------------------- --------------- ------------
Total liabilities (18,778) (17,320)
--------------------------------------- --------------- ------------
Net assets 3,351 3,220
--------------------------------------- --------------- ------------
Issued share capital and reserves
attributable to equity holders
of the company
Share capital 4,223 2,261
Share premium 15,996 15,760
Other reserves 15,905 15,985
Accumulated loss (32,773) (30,786)
Equity 3,351 3,220
--------------------------------------- --------------- ------------
Consolidated statement of changes in equity
Share Share Foreign Merger Accumulated Total
capital premium exchange reserves losses
reserve
$000 $000 $000 $000 $000 $000
Balance at 31 March 2018 2,261 15,760 11,122 4,863 (30,786) 3,220
------------------------------ --------- --------- ---------- ---------- ------------ --------
Prior Year Adjustment
- IFRS 15 (Note 4) - - - - 380 380
Loss for the period - - - - (2,424) (2,424)
Other comprehensive income
Movement in foreign exchange - - (80) - 22 (58)
Total comprehensive loss
for the period 2,261 15,760 11,042 4,863 (32,808) 1,118
------------------------------ --------- --------- ---------- ---------- ------------ --------
Transactions with owners
Share based payment - - - - 35 35
Issue of shares 1,962 236 - - - 2,198
Balance at 30 September
2018 4,223 15,996 11,042 4,863 (32,773) 3,351
------------------------------ --------- --------- ---------- ---------- ------------ --------
Share Share Foreign Merger Accumulated Total
capital premium exchange reserves losses
account reserve
$000 $000 $000 $000 $000 $000
Balance at 1 April 2017 2,261 15,760 10,134 4,863 (25,930) 7,088
------------------------------ --------- --------- ---------- ---------- ------------ --------
Loss for the financial
year - - - - (2,827) (2,827)
Other comprehensive income
Movement in foreign exchange - - 760 - 11 771
Total comprehensive loss
for the period 2,261 15,760 10,894 4,863 (28,746) 5,032
------------------------------ --------- --------- ---------- ---------- ------------ --------
Transactions with owners
Share based payment - - - - 35 35
------------------------------
Balance at 30 September
2017 2,261 15,760 10,894 4,863 (28,711) 5,067
------------------------------ --------- --------- ---------- ---------- ------------ --------
Consolidated statement of cash flows
6 months 6 months
ended ended
30 September 30 September
2018 2017
(Unaudited) (Unaudited)
$000 $000
Cash flows from operating activities
Loss after tax (2,424) (2,827)
Adjustments for:
Depreciation of property, plant
and equipment 47 29
Amortisation of intangible assets 1,808 1,554
Share-based payment charge 35 35
Finance income (59) (2)
Finance expense 400 135
Taxation 109 (91)
------------------------------------------- --------------- ---------------
Operating cash flows before movements
in working capital (84) (1,167)
Decrease in trade and other receivables 196 408
Increase in trade and other payables 213 1,430
-------------------------------------------
Net cash generated from operating
activities 325 671
Cash flows from investing activities
Interest and similar income received - 2
Purchases of property, plant and
equipment (16) (87)
Purchases of other intangible assets (1,598) (1,692)
------------------------------------------- --------------- ---------------
Net cash used in investing activities (1,614) (1,777)
Cash flows from financing activities
Interest and similar expenses paid (371) (135)
Issue of share capital 2,198 -
Loans received 924 3,961
Repayment of loans (3,855) (579)
Receipt of cash in advance of the 3,910 -
issue of equity
--------------- ---------------
Net cash from financing activities 2,806 3,247
Net increase in cash and cash equivalents 1,517 2,141
Cash and cash equivalents at the
beginning of the period 1,937 277
Exchange losses on cash and cash
equivalents 999 (1,099)
Cash and cash equivalents at the
end of the year 4,453 1,319
------------------------------------------- --------------- ---------------
Cash and cash equivalents comprise cash at bank less bank
overdrafts.
1. Basis of Preparation
These interim financial statements have been prepared using
policies based on International Financial Reporting Standards (IFRS
and IFRIC Interpretations) issued by the International Accounting
Standards Board ("IASB") as adopted for use in the EU. They do not
include all disclosures that would otherwise be required in a
complete set of financial statements and should be read in
conjunction with the 31 March 2018 Annual Report. The financial
information for the half- years ended 30 September 2018 and 30
September 2017 does not constitute statutory accounts within the
meaning of Section 434 (3) of the Companies Act 2006 and both
periods are unaudited.
The annual financial statements of Mirada plc are prepared in
accordance with IFRS as adopted by the European Union. The
comparative financial information for the year ended 31 March 2018
included within this report does not constitute the full statutory
Annual Report and Financial Statements for that period. The
statutory Annual Report and Financial Statements for the year to 31
March 2018 have been filed with the Registrar of Companies. The
independent Auditors' Report on that Annual Report and Financial
Statement for 2016 was unqualified but did include a reference to
the uncertainties surrounding going concern, to which the auditors
drew attention by way of emphasis and did not contain a statement
under 498 (2) or 498 (3) of the Companies Act 2006.
After making enquiries, the directors have concluded that the
Group has adequate resources to continue operational existence for
the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the half-yearly consolidated
financial statements.
The same accounting policies, presentation and methods of
computation are followed in these interim consolidated financial
statements as were applied in the Group's latest annual audited
financial statements. In addition, the IASB have issued several
IFRS and IFRIC amendments or interpretations since the last Annual
Report was published, specially IFRS 15 Revenue from Contracts with
Customers, which has been adopted in full using the cumulative
catch-up method and IFRS 9 Financial instruments with no material
impact in the period. The company is preparing the assessment of
adopting the new IFRS 16 Leases which is effective for periods
beginning on or after 1 January 2019.
The Board of Directors approved this interim report on 7
December 2018.
2. Earnings before interest, taxation, depreciation,
amortisation and share-based charge
Reconciliation of operating loss to profit before interest,
taxation, depreciation, amortisation and share-based payment
charge:
6 months ended 6 months ended
30 September 30 September
2018 2017
(Unaudited) (Unaudited)
$000 $000
Operating loss (1,974) (2,785)
Depreciation 47 29
Amortisation 1,808 1,554
Operating loss before interest,
taxation, depreciation and amortisation
(EBITDA) (119) (1,202)
Share-based payment charge 35 35
Operating loss before interest,
taxation, depreciation, amortisation
and share-based payment charge
(Adjusted EBITDA) (84) (1,167)
=============== ===============
3. Loss per share
6 months ended 6 months ended
30 September 30 September
2018 2017
(Unaudited) (Unaudited)
Loss for period $(2,423,755) $(2,827,470)
Weighted average number
of shares 152,364,936 139,057,695
Basic loss per share $(0.016) $(0.020)
Diluted loss per share $(0.016) $(0.020)
Adjusted loss per share
Adjusted earnings per share is calculated by reference to the
loss from continuing activities before interest, taxation,
amortisation and depreciation and share-based payment charge (see
note 2).
6 months ended 6 months ended
30 September 30 September
2018 2017
(Unaudited) (Unaudited)
Adjusted EBITDA $(83,784) $(1,167,267)
Weighted average number
of shares 152,364,936 139,057,695
Basic adjusted EBITDA
per share $(0.001) $(0.008)
Diluted adjusted EBITDA
per share $(0.001) $(0.008)
The Company may issue up to 4,697,166 (2017: 4,697,166)
additional ordinary shares arising in connection with existing
share options granted to staff, management and directors.
4. Consolidated statement of changes in equity
The Company has applied IFRS 15 Revenue from Contracts with
Customers and has transitioned using the cumulative catch-up
method. The main impact in the period is a positive $0.38m
adjustment to Retained Earnings for a batch of licenses collected
in 2016 from one customer that was booked as Deferred Income. After
performing an assessment of the izzi Telecom contract and the other
contracts, there are no material changes in the revenue streams in
the period.
Had the group continued to report in accordance with IAS 18
Revenue for the 6 months ended 30 September 2018, it would have
reported the following amounts in these financial statements:
As reported As would
have
under IFRS Effect been reported
15
$000 $000 $000
Revenue 5,574 380 5,954
Loss for the period (2,424) 380 (2,044)
Contract liabilities/deferred
income
included in Trade and
Other Payables (1,902) - (1,902)
Total Equity 3,351 - 3,351
5. Related party transactions
The Company signed two debt facilities with related parties
(Kaptungs Ltd and other shareholders) in the year ended 31 March
2018, one of GBP1.7 million in November 2017 which was converted on
29 August 2018 into equity ($2.19m), and a GBP3.0 million loan
facility which was agreed to be capitalised alongside an additional
capital injection of GBP3.0 million received on 28 September 2018.
At 30 September 2018, the GBP3.0 million loan capitalisation and
the GBP3.0 million capital injection were subject to shareholder
approval at a General Meeting that was held on 4 October 2018.
Therefore, at 30 September 2018 the Company accounted $4.51
million for the GBP3.0 million loan and its interest and $3.91
million in other current liabilities for the GBP3.0 million
received in cash for the capital injection that was approved at the
General Meeting on 4 October 2018. These investments were provided
by our largest shareholder, Kaptungs Ltd, demonstrating its
commitment to the business model.
6. Other Liabilities
The General meeting held on October 4th, 2018 approved to
capitalise the $3.91 million in Other Liabilities and the $4.30
million included under related parties loans and interests.
7. Cautionary statement
The Company has made forward-looking statements in this
announcement, including statements about the market for and
benefits of its products and services, financial results, the
potential benefits of business relationships with third parties and
business strategies. These statements about future events are
subject to risks and uncertainties that could cause the Company's
actual results to differ materially from those that might be
inferred from the forward-looking statements. The Company and its
Directors can make no assurance that any forward-looking statements
will prove correct.
8. Other
Copies of unaudited interim results have not been sent to
shareholders. However, copies will shortly be available from the
Company's website: www.mirada.tv/public-documents and will also be
available on request from the Company Secretary at the Company's
registered office, 68 Lombard Street, London, EC3V 9LJ.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR EDLFBVLFBFBF
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