Portfolio news 0

H1 Mirriad revenue improves as costs fall and drive towards adoption continues

 

Mirriad, the computer vision and AI platform company, today announces unaudited half-year results for the six months ended 30 June 2020.

Highlights:

Strategic Development

 

• Levels of commercial activity recover to record levels in China post initial impact from Covid-19 as advertiser demand increases
• Steadily increasing customer base in the US with new agreements with Condé Nast, Tastemade and Meredith Corporation and, post the period end, Fuse Media
• Significant increase in tier 1 US media company, client and agency engagement and new opportunities opening in adjacent markets, including music video, and in establishing direct relationships with content producers
• Appointment of new Global Chief Marketing Officer, Lianne Norry, in March 2020
• Successful transition to full remote working in all locations in response to Covid-19 pandemic

Financial

• Revenue increased by 109% to £897k (30 June 2019 £429k), despite the impact of Covid-19, as the Group continues to deliver against its strategy
• Cash and cash equivalents of £14.4m (30 June 2019 £9.2m), up 57% following the 2019 fundraise, net of trading losses. Gross cash balance at end August 2020 is £13.3m.
• Cash consumption significantly reduced to £4.5m (30 June 2019 £5.9m), down 24%, through proactive cost management while the volume of activity increased
• Reduced operating loss of £4.9m (30 June 2019 a loss of £7.2m), down 32% on increased revenue and demonstrating the positive impact of 2019's restructuring
• Loss per share 2p (30 June 2019 7p)

Our key performance indicators

	Revenue		Cash consumption		Customers under contract
	£000k	%	£000k	%	No.	%
6 months to June 2020	897	+109%	4,487	-24%	16	+78%
6 months to June 2019	429	+258%	5,917	-5%	9	No change
6 months to June 2018	120		6,222		9

 
 
Stephan Beringer, Chief Executive Officer of Mirriad, said:

"We have made significant progress in increasing revenue and driving adoption among our top-tier partners, despite the challenging macroeconomic conditions which have had a negative impact on demand for advertising and disrupted the production of new content. The improved revenue picture is supplemented with positive news from our work to reduce the company's operating loss. We have been able to respond to the Covid-19 headwinds effectively thanks to the efforts of our team, the strong relationships with partners, and a relentless focus on the execution of our strategy and the fundamental effectiveness of our technology.

"In China, June was the busiest month for brand campaigns carried since our operations began, building on positive numbers recorded in April and May, as confidence tentatively improves in the country post lockdown. Our positive experience with key partner Tencent in this market shows how Mirriad insertions can become integral pieces of the advertising and media mix, swiftly driving new levels of success and scale for advertisers and content partners alike.

"Looking ahead to the second half of the year, we are focusing on the areas that offer the best routes to adoption and scale. We expect to further expand our footprint with new and existing broadcast, VOD and streaming partners, and build on successful forays into new markets, such as music video content. This will be guided by the fact that audiences actively prefer our format, and that we are able to open up entirely new opportunities and revenue streams for advertisers and creators - a reality that is more important than ever in the current climate. Furthermore, while the macro-economic headwinds linked to Covid-19 are likely to remain in place, at least for the near term, we are pleased to see the business continuing to trade in line with our expectations and, should the current trends within the business continue during the second half of the year, we are cautiously optimistic of achieving our full year expectations." 

For further information

Please visit www.mirriad.com, or contact:

Mirriad Advertising plc	Tel: +44 (0)207 884 2530
Stephan Beringer, Chief Executive Officer David Dorans, Chief Financial Officer
Nominated Adviser & Broker: Canaccord Genuity Limited	Tel: +44 (0)20 7523 8000
Simon Bridges Richard Andrews Thomas Diehl
Financial Communications: Charlotte Street Partners
Tom Gillingham Katie Stanton Andrew Wilson	Tel: +44 (0)7741 659021 Tel: +44 (0)7810 636995