The information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR") and with the publication of this announcement, this information is now considered to be in the public domain.
29 April 2020
("Mirada" or the "Company")
Year End Trading Update and
Mirada plc (AIM: MIRA), a leading provider of integrated software solutions for digital TV operators and broadcasters, provides the following trading update for the financial year ended 31 March 2020.
The Board is pleased to report that it expects:
· Total revenues for the year in excess of $13.0 million (FY19: $12.3 million), with adjusted revenues excluding discontinued activities (Mirada Connect disposal in July 2019) of $12.8 million (FY19: $11.5 million, 11% growth).
· EBITDA of $4.0 million (FY19: $0.8 million), with adjusted EBITDA (excluding the one-off gain from the sale of Mirada Connect) of $2.3 million, lower than current market expectations but more than 180% growth on last year (FY19: $0.8 million). Significantly, EBITDA in the second half of FY20 is expected to be in excess of $2.0 million (H2 FY19: $0.9 million).
· Profit after tax (PAT) of $0.3 million (FY19: loss of $3.0 million), with an adjusted PAT before the one-off Mirada Connect gain of minus $1.4 million, a year-on-year gain of $1.6 million.
· Net debt of $5.0 million at 31 March 2020 ($4.9 million at 31 March 2019), with cash and other short-term facilities available at $1.8 million.
Turnover from our largest customer, the Mexican operator izzi Telecom, remained stable, despite the one-off increase in FY19 revenues resulting from the 2018 FIFA World Cup. By March 2020, izzi Telecom had deployed more than 2.8 million set-top boxes (STBs) with Mirada's product, and more than 1.0 million households were using its OTT product supplied by Mirada. izzi Telecom recently selected Mirada to deploy its new generation TV service, which reinforces our long-term relationship. In March 2020, more than 3.2 million devices used our Iris product worldwide.
Total revenues excluding discontinued activities grew by $1.3 million to $12.8 million, driven by a $1.5 million increase in Development Revenues (revenue from customer deployments, integration and product development), although some additional forecasted revenues and their associated costs were slightly delayed and are now expected in fiscal year 2021. Half of this growth in fiscal year 2020 came from markets other than Mexico.
We are making progress toward several significant new commercial rollouts during the next few months, in Mexico, the Caribbean region, Spain and Mongolia, as our relationships with present and new customers develop positively. Negotiations with new potential customers continue, and we will keep our shareholders duly updated.
Regarding COVID-19, the whole Company transitioned to remote-working and has been performing without incident for more than six weeks. We continued implementing and deploying new product features as planned, without delays, and we do not foresee any operational constraints for the time being. Although our customers are currently experiencing exceptional increase in demand for their services owing to generalised lockdowns in their territories, it is still too early to predict the long term impact of the present situation on their businesses.
The Company has been able to raise €1.25 million of additional long-term (6 year) unsecured loans, at 2% interest, with funding provided by Spanish banks and 80% guaranteed by the Spanish Government. The loans are made available to support Spanish-based companies with their domestic and international operations. Although we do not yet know if the COVID-19 pandemic will have a long lasting impact on our customers' performance, the Board believes that it is important to secure liquidity in the current environment, and is confident that it will not need to rely on additional equity funding to continue its operations for the foreseeable future.
Jose Luis Vazquez, CEO of Mirada, commented: "The group has made remarkable progress. We continue to gain traction in the market and we are starting to see the return on the investment made over previous years. We are glad to continue providing full support to our customers during these uncertain times, and we remain on track with our deployment plans."
All figures included in this announcement are subject to audit.
José Luis Vázquez, Chief Executive Officer
Gonzalo Babío, Chief Financial Officer
+44 (0) 207 868 2104
Allenby Capital Limited
(AIM Nominated Adviser and Broker)
+44 (0) 207 3757 6880
+44 (0) 20 3328 5656
Mirada is a leading provider of products and services for Digital TV Operators and Broadcasters. Founded in 2000 and led by CEO José Luis Vázquez, the Company prides itself on having spent almost 20 years as a pioneer in the Digital TV market. Mirada's core focus is on the ever-growing demand for TV Everywhere for which it offers a complete suite of end-to-end modular products across multiple devices, all with innovative state-of-the-art UI designs.
Mirada's products and solutions, acclaimed for unparalleled flexibility and optimal time to market, have been deployed by some of the biggest names in digital media and broadcasting including Televisa, Telefonica, Sky, Virgin Media, BBC, ITV and France Telecom. Headquartered in London, Mirada has commercial representation across Europe, Latin America and Southeast Asia and operates technology centres in the UK, Spain and Mexico. For more information, visit www.mirada.tv