Audio-visual content services provider Mirada Plc (LON:MIRA) has told investors that a rollout delay with its major customer will hit profits during this financial year.
Mexican media giant Televisa is introducing new quality assurance processes which will likely lead to a “short-term slowdown” in the roll-out of Mirada’s Iris product and the subsequent licence fees it generates.
As a result, the company expects revenues and profits for the current financial year to be lower than previously expected.
“Although it is disappointing that, for reasons beyond Mirada's control, we are anticipating a slowdown in the Televisa rollout, the Televisa contract remains unchanged, and provides the Company with an exceptional reference,” said chief executive Jose Luis Vázquez.
Despite this issue, Mirada added that its current pipeline of opportunities is larger than it ever has been – thanks in part to the “excellent reference” from Televisa and the recent sales and marketing drive.
Based on current indications, the company added that new business wins should more than compensate for the Televisa slowdown.
“The company's pipeline of opportunities, particularly in South East Asia and Latin America, is growing rapidly, having more than doubled in the past ten weeks alone,” said Vázquez.
“We are in advanced discussions with a number of these potential clients on which we expect to provide a further update in due course.”