TRADING UPDATE - YE 31 DEC 2013
SyQic's (AIM:SYQ), a fast growing OTT provider of live TV and on-demand paid video content across mobile and internet enabled consumer devices, is pleased to provide the following positive trading update in advance of its final results for the year ended 31 December 2013.
Commenting on the Trading Update, SyQic's Group Chief Executive Offer, Jamal Hassim said: "I am pleased to report that SyQic's trading performance is in line with market expectations. The Group has made significant progress in the period and our two content platforms are going from strength to strength, both in the core South-East Asian markets as well as the OTT roll-out. The management team looks forward to updating the market further at SyQic's maiden set of preliminary results."
he trading performance of the Group during 2013 was strong, in particular in the second half of the year, and the results for the year will be in line with market expectations, at both revenue and underlying profit levels. Costs relating to the IPO on AIM moderately exceeded estimates but the underlying level of profitability of the Group was in line.
The final quarter of 2013 was particularly strong and revenues during the second half of 2013 were almost double the revenues achieved in the same period in 2012. This positive momentum has carried forward into 2014. In addition, net profit margins (excluding IPO costs) were substantially higher in the second half of 2013, as against the first half, as the increase in sales led to significant economies of scale. At the end of the year the Company’s debtor profile was in line with expectations.
SyQic's product offering has expanded significantly in 2013 and the Group has made considerable progress internally in creating a strong foundation to enable expansion of its Telco and OTT (“Over The Top”) pay TV service offerings during 2014 and subsequent years. SyQic has similarly built up and strengthened its partnerships with content providers in many of its target regions, ensuring that there is a healthy pipeline of new video content material to address the needs of multiple international migrant communities.
The infrastructure supporting SyQic's business model is now provided by market-leading companies and considerable focus has been placed on system development work and logistical arrangements. SyQicenvisages that this will help optimise customer experience in the areas of content delivery performance and ease of payment.
In December 2013, SyQic successfully raised £3.2 million in its IPO on AIM (of which £2.5m was new equity capital) via Allenby Capital, to fund the initial stages of the planned roll-out of the Yoonic.tv OTT service. In addition, over the last twelve months, the management team has been further strengthened, including the addition of a new Chief Financial Officer, and the Group is now well equipped to take SyQic through a planned period of strategic growth.
SyQic is currently preparing for the official launch of its OTT pay TV service branded “Yoonic.Tv.” As announced on 20 December 2013, a pilot launch of the service was conducted in conjunction with several UK universities and their feedback has been used to further refine the product. The Group’s management team has developed a roll-out strategy for the service with numerous launches planned during 2014 to identified groups.
This roll-out programme will commence during the first half of 2014 with the first launch targeted at established Bangladeshi migrant communities in the UK. These will be followed by launches for other migrant communities in the UK including Filipino, Polish, Turkish, Indonesian and Malaysian, amongst many others.
Concurrent with the Yoonic.Tv roll-out, 2014 will also see the Group continuing to broaden and deepen its revenue generating, Telco based, Yoomob+ platform user base through new tie-ups with more Telcos in South East Asia.
The Group will be announcing its maiden preliminary results for the year ended 31 December 2013 towards the end of April 2014 at which point it plans to hold an analysts’ briefing. Further details of the exact date of the release of the Group’s results and the arrangements for the analyst briefing will be announced at the appropriate time.
For further information:
Jamal Hassim, Group Chief Executive OfficerTel: +44 (0) 20 7398 7709
Steve Elliff, Chief Financial Officerwww.syqic.com
Allenby Capital Limited
Alex Price / Mark ConnellyTel: +44 (0) 20 3328 5656
Abchurch Communications Limited
Henry Harrison-Topham / Harriet RaeTel: +44 (0) 20 7398 7718
Notes to Editors:
SyQic is a fast growing OTT (Over The Top) provider of live TV and on-demand paid video content across mobile internet-enabled consumer electronics devices such as mobile phones and tablets through its “Yoonic” platform. Yoonic has efficient mobile video streaming as its core offering and allows for close to high definition streaming, utilising adaptive bit-rate streaming technology that matches the available bandwidth through the Group’s proprietary encoding methodology, and can stream as low as 80kbps.
The Group has access to over 20,000 titles of online video-on-demand content as well as over 70 live television feeds comprising English language based content and native language content for a number of ‘home markets’ in Asia and their international migrant communities. The content is delivered through SyQic’s platform via a number of channels in the movies, drama, music, sports, news, lifestyle and general entertainment genres.
The Group, which is incorporated in Jersey and headquartered in the UK, already has a significant service footprint in the Philippines, Indonesia and Malaysia and near term launches are planned for the UK (before the end of 2013), followed by mainland Europe, Indochina, Myanmar, Singapore, Pakistan and Bangladesh with a planned launch of the Group’s service in the US over the next 18 months.