TIDMMIRI
RNS Number : 6102J
Mirriad Advertising PLC
14 December 2022
Mirriad Advertising plc
("Mirriad" or the "Company")
Trading update for the twelve months to 31 December 2022
Mirriad, the leading in-content advertising company, announces
the following trading update for the twelve months ended 31
December 2022 ("the period").
FY22 headlines
-- Revenue for the year to December 2022 is now expected to be
GBP1.52m-GBP1.75m, slightly short of market expectations, pending a
number of late deals which may be won and delivered before the year
end
-- Closing cash position at the end of December 2022 expected to
be around GBP11.5m (December 2021 GBP24.5m) with year end cash to
be better than market expectations due to cost control measures
-- EBITDA loss of GBP15.5m, in line with market expectations
-- US revenues to grow by between 36% and 64% to between GBP1.2m
and GBP1.45m, accounting for around 80% of total revenue, despite a
recently less favourable exchange rate
-- Cost control programme to deliver GBP2.5m of total annualised
savings, with the vast majority to be achieved in 2023
The Company ends the year in a better cash position than
forecast, thanks to tight and ongoing efficiency measures. EBITDA
loss is GBP15.5m, in line with projections. Revenue, in a range
between GBP1.52m-GBP1.75m will be slightly short of market
expectations with the final outturn depending on closing several
outstanding deals and delivering those campaigns before the year
end. The Company notes the continued growth in the US despite a
recently weaker dollar, as revenues continue to rebalance away from
China.
Outlook and KPI performance
The Company accounts for revenue as deals are delivered to
clients and with two weeks trading remaining this calendar year,
the final revenue number will reflect that the Company's revenues
are backloaded to Q4, with the December holiday period particularly
important for advertisers and content owners in the US market. This
is further evidenced by the significant volume of
requests-for-proposal ("RFPs") the Company is currently
receiving.
This year, the Company has continued its pivot to focus on the
US, the world's largest advertising market with an estimated TAM of
$106Bn and the home of globally leading entertainment companies and
ad technology platforms.
In the US, the Company has increased the number of supply
partners from 18 at the end of H1 2022 to 47 at the end of November
2022; the number of campaigns booked to 29 as at the end of
November 2022 compared to 23 for FY 2021; and the number of active
advertising agency partners to 13 as of the end of November 2022
compared to 7 at end of H1 2022. These KPIs underline the progress
made by the Company to penetrate the US market and the continued
momentum that will lead to monetisation of these opportunities.
In FY 2022, the Company has worked with 50% of the top ten
global advertisers by spend, and the Company is further broadening
and strengthening relationships with top tier advertisers,
agencies, and multiple tier one TV, VOD, CTV and other content
partners.
The Company's current US pipeline for Q4 FY 2022 and Q1 FY 2023
tracking is as follows:
Pipeline Q4 2022 & Q1 2023 RFP Negotiating
Advertisers 45 8
---- ------------
Supply Partners 10 4
---- ------------
Technology Partners N/A 9
---- ------------
Further technical developments
Technical progress is moving ahead, and the Company is now
geared for the acceleration of its programmatic capability. The
Company is regarded in the US as a leader in the in-content
advertising space, which is underlined by the recent AdExchanger
Award for most innovative TV advertising technology.
On the back of the ad server and supply side platform
integrations as announced earlier in the year, the Company has now
delivered its first in-content advertisements via an end-to-end
programmatic transaction and is further expanding its ad and media
tech capabilities and integrations, as well as its cloud
partnerships.
Taking these factors together and considering the opening of
streaming services to advertising, the Company, with 36 patents
protecting its platform, remains well placed to benefit from the
needs of the global advertising industry that is facing significant
challenges, namely ad-skipping, dwindling viewer attention and the
oversaturation of existing advertising breaks. Independent research
has repeatedly shown that the Company's in-content placements are
preferred by viewers and drive more favourability, consideration
and sales.
Stephan Beringer, CEO of Mirriad , said: "The progress across
key KPIs set out by the Board underlines the progress that is being
made. Although revenue is likely to be slightly lower than
anticipated, a positive direction of travel is clear, despite macro
market headwinds. The ongoing increase in the proportion of our
revenue coming from the US is encouraging, reflecting the proactive
steps we have taken to address the world's largest advertising
market. This ongoing structural change is underpinned by tight cost
control measures, which have resulted in a better cash position
than forecast.
"We now look forward to capitalising on the progress made in key
areas like programmatic delivery and leveraging the high quality
partners we have secured to run more campaigns in 2023. The
challenges facing the advertising market are clear, and we are
confident in Mirriad's unique ability to address these and deliver
an experience that benefits brands, content owners and audiences
alike."
ENDS
Enquiries:
For further information please visit www.mirriad.com or
contact:
Mirriad Advertising plc
Stephan Beringer, Chief Executive Officer
David Dorans, Chief Financial Officer
Tel: +44 (0)207 884 2530
Financial Adviser, Nominated Adviser and Broker :
Panmure Gordon
Alina Vaskina / James Sinclair-Ford (Corporate Advisory)
Erik Anderson (Corporate Broking)
Tel: +44 (0)20 7886 2500
Financial Communications:
Charlotte Street Partners
Tom Gillingham Tel: +44 (0) 7741 659021
Andrew Wilson Tel: +44 (0) 7810 636995
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018
("MAR"). Upon the publication of this announcement, this inside
information is now considered to be in the public domain.
About Mirriad
Mirriad's award-winning solution unleashes new revenue for
content producers and distributors by creating new advertising
inventory in content. Our patented, AI and computer vision
technology dynamically inserts products and innovative signage
formats after content is produced. Mirriad's market-first solution
seamlessly integrates with existing subscription and advertising
models, and dramatically improves the viewer experience by limiting
commercial interruptions.
Mirriad currently operates in the US, Europe and China.
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END
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