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24 Jan 2024 07:00
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 or contact:
Mirriad Advertising plc Stephan Beringer, Chief Executive Officer Nic Hellyer, Chief Financial Officer
| c/o Charlotte Street Partners |
Nominated Adviser & Broker: Allenby Capital Limited James Reeve/Lauren Wright (Corporate Finance) Guy McDougall/Matt Butlin (Sales and Corporate Broking)
| Tel: +44 (0)20 3328 5656
|
Financial Communications: Charlotte Street Partners Tom Gillingham Fergus McGowan |
Tel: +44 (0) 7741 659021 Tel: +44 (0) 7590 049023 |
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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