Mobile Streams Regulatory News (MOS)

18 March 2022

Mobile Streams plc

("MOS" or "the Company")

Interim Results

Highlights 

· Unaudited revenues were £0.3m (31 December 2020: £0.2m). All revenue is from continuing operations

· £1.4m of cash and cash equivalents at 31 December 2021 (£1.1m as at 31 December 2020)

Post-period end update 

· Streams, the Company's B2B (business to business) data insight and intelligence platform monthly revenues now exceed the net revenue produced by the legacy business

· £1.25m of cash and cash equivalents as at 16 March 2022 (excluding the proceeds of the Placing and Broker Option as below)

· £1.55m before expenses raised through Placing and Broker Option

Trading update

The half year to 31 December saw RNS announcements of several significant contracts and partnerships, with revenue growth from the new content businesses growing, more than offsetting the decline of the historical business.

In July we launched the LiveScores football 365 service in Mexico, with subscriber growth exceeding internal targets from the first month, and continuing to do so. In September the LiveScores service was launched in Argentina, using an affiliate marketing model to enable revenues to be delivered externally - as with Mexico, user numbers have continued to exceed expectations. In November we launched the LiveScores service in Brazil, and in December monthly revenues exceeded $80,000, with over 70,000 monetisable Streams users across all channels. Meanwhile, the Streams SaaS content platform continued to increase paid user numbers. 

Since the end of the half year, we have announced a major strategic partnership and contract with International Gaming Systems ("IGS") which is expected to deliver significant revenue to the Company. As a result, monthly revenue across all services exceeded US$120,000 in January 2022. Subsequently, in February we launched gaming, esports and Metaverse services in India via the Company's own App, potentially available to over 273 million of Vodafone India's customers, using our existing carrier billing relationship. February also saw the launch of the first Esports competition under the partnership agreement with IGS, and the acquisition of sole ownership of the LiveScores services that it had previously been operating under a revenue share agreement with Quanta Media Group.

In late February the partnership with IGS resulted in the launch of Battleriff, one of the world's leading global gaming platforms, tournaments on www.mobilegaming.com. We believe that there is enormous scope to grow mobilegaming.com and our service offering, and expect to make further announcements in the coming weeks and months. As announced earlier this month, monthly revenue across all services exceeded US$150,000 in February. In addition, the Company has commenced the process of uploading its content, including Esports, to the Huawei App gallery and anticipates once successful these will be made available across the Huawei handset user base.

Mark Epstein, CEO, said:

"Since the launch of the LiveScores platform in July, we have grown revenues every month. Although it has taken longer than hoped since 2019 to find a way to build on our existing carrier relationships, we are now doing so. We are actively looking at ways to improve the effectiveness of our marketing including through further joint ventures and partnerships, and see significant opportunities to grow customer numbers and revenues in the sports and Esports. We are delighted with the performance of the business and expect to see the trend of good revenue and customer growth to continue throughout 2022."

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PREPARATION

The interim results of Mobile Streams plc are prepared in accordance with the requirements of IAS 34 Interim Financial Reporting as adopted by the EU and prepared in accordance with the accounting policies set out in the last financial statements for the 12 months ended 30 June 2021.

The interim results, which are not audited, do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.

The comparative financial information for the twelve months ended 30 June 2021 has been extracted from the statutory accounts for that period. In addition, the financial information for the 6 months ended 31 December 2020 has been extracted from the unaudited Interim results. The full audited accounts of the Group for the 12 months ended 30 June 2021 were prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and have been delivered to the Registrar of Companies.

The auditor's report on these financial statements was unqualified and did not contain statements under S498 (2) or S498 (3) of the Companies Act 2006.

2. SEGMENT REPORTING

As at 31 December 2021, the Group was organised into four geographical segments: Europe, North America, Latin America, and Asia Pacific. Revenues were from external customers only and generated from three principal business activities: the sale of mobile content through MNOs (Mobile Operator sales), the sale of mobile content over the internet (Mobile Internet sales) and the provision of consulting and technical services (Other Service Fees).

All operations are continuing and all inter-segment transfers are priced and carried out at arm's length.

The segmental results for the 6 months ended 31 December 2021 were as follows:

The segmental results for the 12 months ended 30 June 2021 were as follows:

Diluted (loss)/earnings per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The Company has only one category of ordinary shares.

The adjusted EPS has been calculated to reflect the underlying profitability of the business by excluding non-cash charges for depreciation, amortisation, impairments and share compensation charges.

4. GOING CONCERN

The Group had cash balances of £1.4m at 31 December 2021 (30 June 2021: £1.7m). Having reviewed cash flow forecasts and budgets for a year ahead the Directors have a reasonable expectation that the Group has resources to continue in operational existence for the foreseeable future.

5. FOREIGN CURRENCY TRANSLATION

(a) Presentational currency

The consolidated financial statements are presented in British Pounds, which is also the functional currency of the parent entity.

(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the date the transaction occurs. Any exchange gains or losses resulting from these transactions and from the translation of monetary assets and liabilities at the balance sheet date are reported in the income statement except when these represent a net investment in a subsidiary when they are charged or credited to equity.

Foreign currency balances are translated at the balance sheet date using exchange rates prevailing at the period end.(c) Group companies

The financial results and position of all group entities that have a functional currency different from the presentational currency of the Group are translated into the presentational currency as follows:

i. assets and liabilities for each balance sheet are translated at the closing exchange rate at the date of the balance sheet

ii. income and expenses for each income statement are translated at average exchange rates (unless it is not a reasonable approximation to the exchange rate at the date of transaction)

iii. all resulting exchange differences are recognised as a separate component of equity (translation reserve)

iv. The exchange rates used in respect of Argentinean Pesos are the official published exchange rates.

6. Other Investments

Other investments includes a Loan to Quanta Media Group Ltd of £414k at 31 December 31 2021. (30 June 2021: 250k). Although the original intention was to lend a total of £500k to Quanta, the conditions for the drawdown of the final tranche were not met.

END

About Mobile Streams plc

The Company provides mobile games and content through its carrier relationships, through its LiveScores platform, and with partners including International Gaming Systems ("IGS") via www.mobilegaming.com. The Streams Data business provides data insight, intelligence, visualisation services and marketing optimisation tools. These are sold to clients and help to power the Company's core offerings. The enterprise level bespoke service achieved first revenues in June 2020, and the Streams SaaS ("Software as a Service") self-service platform generated initial customer revenues in October 2020.

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

For further information, please contact:

Mobile Streams plc

Nigel Burton, Adviser

+44 77 8523 4447

www.mobilestreams.com

Beaumont Cornish (Nominated Adviser)

James Biddle and Roland Cornish

+44 (0) 20 7628 3396

Peterhouse Capital Limited (Broker)

Lucy Williams and Duncan Vasey

+44 (0) 20 7469 0930