20 Jan 2015 07:00
20 January 2015
CDialogues plc
("CDialogues" or the "Company")
Pre-Close Trading Update and Notice of Results
CDialogues plc (AIM: CDOG), the provider of mobile marketing solutions to Mobile Network Operators (MNOs), provides a trading update for the 12 months ended 31 December 2014 which is in line with market expectations.
The Company maintained the growth momentum achieved during the first half of the year and expects to show revenue for the full year of more than €9.5 million, representing an increase of more than 100 per cent compared with the previous year. This result, which is ahead of budget, was achieved despite the reduced revenues from Iraq in Q4 (whose operations ceased in early December 2014), and demonstrates the successful outcome of the Company's drive to grow and diversify revenues. The cessation of operations in Iraq (which accounted for approximately 15 per cent of November's revenues) is being more than compensated by growth in other countries with projects which continue in to 2015.
EBITDA for the period is also expected to show strong growth to approximately €2.7 million representing year on year growth of more than 70 per cent. Free cash flow for the year, after development costs and capital expenditure and excluding one-off items relating to the AIM listing, reached approximately €1.1 million further enhancing the Company's cash position to €2.4 million as of 31 December 2014.
In addition to the strong financial performance during the 12 months to 31 December 2014, the Company also successfully completed a number of strategic milestones. In particular, the Company managed to significantly diversify its revenue base both by number of clients and geographical sources of revenue. Moreover, CDialogues completed its AIM listing in June 2014 raising £1.25 million and further strengthening its balance sheet.
During 2014, CDialogues delivered mobile marketing campaigns to a total subscriber base of 35 million customers (2013: 15 million), in five countries across the Middle East. These campaigns attracted more than 5.5 million unique subscribers and generated total gross billings in excess of $50 million.
Outlook
Subscription-based recurring revenues, which provide greater scalability and visibility for the business, accounted for more than 75 per cent of the total revenues during 2014 as a whole and therefore provide the Company with a strong basis for the current year.
The Company has identified a pipeline of potential new contracts, a number of which are currently undergoing preparations for launch in the coming months, including one signed in December 2014, and the Board remains confident that these will result in further growth opportunities for 2015.
CDialogues will announce its full year results for the 12 months ended 31 December 2014 on Tuesday 21 April 2015.
Pale Spanos, Chief Executive Officer, commented:"This was an extremely important year for the Company. We joined AIM in June 2014 with a proven model already in place and have since seen the value of our Company appreciate in absolute terms and relative to the other Technology IPO's during 2014 as we have continued to meet market expectations.
"Our business model is scalable with an operational infrastructure designed to expand and facilitate new contracts as they come on stream. Our cash conversion remains high compared with many companies in the industry allowing for continuous reinvestment in our software systems and strengthening of our balance sheet.
"We remain committed to continuing the success seen during 2014 by further expanding our geographical footprint, investing in our core technology and growing our customer partnerships to provide further shareholder value during the current year."
Enquiries:
CDialogues Plc | |
George Karakovounis | Tel: +30 (210) 630 0930 |
Pale Spanos | Tel: +30 (210) 630 0930 |
Strand Hanson Limited | |
Andrew Emmott | Tel: 020 7409 3494 |
Rory Murphy | |
Mirabaud LLP | |
Peter Krens | Tel: 020 7321 2508 |
Walbrook PR Ltd | Tel: 020 7933 8780/cdialogues@walbrookpr.com |
Paul Cornelius | Mob: 07866 384 707 |
Nick Rome | Mob: 07748 325 236 |
About CDialogues
CDialogues provides mobile marketing solutions enabling MNOs to retain and acquire market share, increase average revenue per user (ARPU) and reducing subscriber churn.
The Company's products and services deliver fully managed solutions, utilizing advanced Data analytics techniques combined with Linguistic engineering marketing, to build awareness and multiply sales and opt-ins of promotional offerings and other mobile content being offered by the MNOs.
The solutions designed by the Company, are tailored and served with the appropriate Linguistic format, to each individual mobile network subscriber typology and geography it operates in, using its proprietary software and scalable infrastructure.
The majority of CDialogues' revenues are derived from a recurring subscription-based revenue model, which has been pioneered by the Company. As a result, the Company benefits from incremental cash flow growth from each new campaign customer and mobile network subscriber.
The Company's near-term focus is on growing both its customer base and expanding its geographic footprint in selected markets in the Middle East, Africa and Southeast Asia, where mobile device penetration and mobile network usage is growing rapidly.
CDialogues has been profitable and cash flow positive since commercial operations began in early 2012.