Mobile Loyalty PLC
Mobile Loyalty plc releases first quarter 2012 update
Mobile Loyalty PLC / Key word(s): Quarter Results Mobile Loyalty plc releases first quarter 2012 update London/Frankfurt/Malmö, May 31, 2012 Mobile Loyalty plc, the mobile advertising company traded on Frankfurt Open Market (ticker: M8L) and AktieTorget, Stockholm (ticker: MOBI SDB) (the 'Group'), announces an unaudited operational and financial update for the three months ended 31 March 2012. Starting in 2011, the Group is transitioning into a more sales and marketing driven organization, a process that has continued during the first quarter of 2012. Two new morning paper customers, namely Ystads Allenhanda and Trelleborgs Allehanda, were successfully launched during the first quarter. With these two new titles being serviced by Mobile Loyalty the number of advertisers in our system continues to grow. The total number of active advertisers in Mobile Loyalty's system across different titles has grown to close to 400, of which the majority was signed up for during the last 6 months. As previously communicated, Mobile Loyalty signed an agreement with TV4 regarding a new mobile advertising service. The project was started in Q1 and is running on schedule with a launch target in the second half of 2012. We continue to execute the growth strategy that was established in the beginning of 2011. Part of this strategy was to gain expertise, scale and customers by pursuing acquisitions. In January, 2012 the acquisition of Encons Nordic AB ('ENC') was finalized. The integration of the ENC organization and product offering is progressing according to plan. To leverage ENC's sales organizations and customer base within the Group, all the products and services from both ENC and Mobile Loyalty Europe AB ('ML Europe') for media advertising solutions will be merged into one sales and marketing organization. Furthermore the acquisition of Scandvision Holding AB ('Scandvision') was successfully closed in March, 2012. The Scandvision acquisition complements the Group's total offering and brings additional value to new and existing customers across all our target segments including brand communication, media, and advertising. The Group's customer pipeline is growing and during the first quarter of 2012 additional resources were brought in to strengthen the project delivery organization in order to manage and execute multiple customer projects in parallel. Additional suppliers and vendors have been identified and assessed in order to prepare for a more aggressive roll-out of services to our customers. Indeed, there has been a significant increase in interest from international customers and potential partners from outside the Nordic market, and our efforts in ramping up our delivery organization will also address the need for parallel customer delivery teams and increased customer support. Comments to the financial statements This report presents the consolidated financial statement for the Group that for the first time also include Encons Nordic AB (transaction closed 18 January 2012) and Scandvision Holding AB (acquisition closed 1 March 2012). The 31 March 2012 consolidated income statement comprises 3 months of Mobile Loyalty Europe AB, 3 months of ENC, and 1 month of Scandvision Holding AB. The 31 March 2012 consolidated balance sheet represents Mobile Loyalty Europe AB, Mobile Loyalty plc, Encons Nordic AB, and Scandvision Holding AB as at 31 March 2012. – Sales for the quarter increased to EUR 518,000 (1Q11: EUR 98,000). – Core EBITDA for the quarter was EUR -351,000 (1Q11: EUR -74,000). Core EBITDA reflects the operating result before exceptional items, one-off charges associated with the IPO and capital raising efforts. – Loss before tax was EUR -932,000 (1Q11: EUR -182,000). Corporate finance related activities In Q1 2012, the Group completed two successful capital raising activities that resulted in approximately EUR 1,3 million in new capital. In March, the Group successfully placed 4,000,000 shares at EUR 0,23 per share, consisting of a mix of new shares and treasury shares obtained through the Scandvision acquisition, thus raised a total of EUR 904,000 in new capital. This fundraising activity was initiated to enable the Group to further develop the new product category together with TV4 as described above. Additional 1,000,000 shares were subscribed for by the founder of the company, pending an approval from the 2012 AGM on May 31, 2012. As part of the Group's overall strategy to focus on a more aggressive market rollout and an extended delivery organisation in the target media segment, the Group's organisational structure will be subject to further review. The minority stakes in associated companies will be either fully integrated or divested. As a first step, the Company divested its minority stake in Scandvision CPH A/S as communicated in late May, 2012. As to further boosting the Group's overall corporate governance, the Group has recruited key competencies in order to build a stronger management team as well as to build for growth and international expansion. For example, the Group appointed Mr. Ulf Angelin as the group CFO in the first quarter of 2012. Based on statistics and feedback from our existing customers who are now using Mobile Loyalty's service for their mobile offering, in combination with the development of the mobile market, we are receiving confirmation as regards to the market development and projections we envisioned and planned for a year ago. This is strongly validating the Group's strategy. We now have a number of customer reference cases that provide us with necessary validation of the Group's technology as well as its business model. We are looking very much forward to a very busy period, where customer delivery execution and performance will be key elements for our success. On behalf of the Board of Directors
Nicklas Gerhardsson
About Mobile Loyalty Group Mobile Loyalty offers unique solutions and services in the most rapidly growing sector of marketing and advertising – mobile advertising – that is projected to grow from USD 1.6 billion in 2010 to USD 20 billion in 2015 according to the Gartner Institute. Mobile Loyalty's business model is built around revenue sharing with its customers who primarily operate in two sectors: * Advertising platforms for the media segment, for example newspapers, magazines, TV, and radio. * Advertising and communication solutions for brand companies and retail. Mobile Loyalty plc is listed on the Open Market Stock Exchange, Frankfurt (ticker M8L) since July 2011 and on AktieTorget, Stockholm (ticker MOBI SDB) since January 2012. Mobile Loyalty Group includes Mobile Loyalty Europe AB, Scandinavian Advertising, Scandvision Holding AB and Encons Nordic AB. Mobile Loyalty has about 50 employees. For more information, please contact:
About Mobile Loyalty plc Mobile Loyalty is a leading service provider in the personalized mobile advertising arena. The Company's solutions are offered on a Software as a Service (SaaS) basis that makes it possible for media and brand companies to effortlessly launch mobile advertising services within a few weeks. A key benefit for media companies is that they can quickly generate new, incremental advertising revenues without making any investments in development and technology. Media and brand companies also avoid the work associated with developing, adapting, and maintaining new mobile apps and mobile web sites as new platforms and technologies are being launched at a constantly higher speed. End of Corporate News 01.06.2012 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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