SyQic plc (AIM:SYQ), a fast growing OTT provider of live TV and on-demand paid video content across mobile and internet enabled consumer devices, announces a trading update for the 12 months ending 31 December 2014.
revenue increased by 128% to £10.7 million (unaudited) (2013: £4.7 million)
net cash of £0.22 million (unaudited) (2013: £1.08 million) following investment into premium content licensing and the comprehensive redesign and rebuild of cool2vu
all payments from our Indonesian partners received in line with previously announced payment plans and faster payments for 2014 continuing with the receipt of the May 2014 payment
strong revenue performance for January 2015 with cool2vu attracting interest from major advertisers
Commenting on the Trading Update, SyQic’s Group Chief Executive Officer, Jamal Hassim said: “I am pleased to report that SyQic’s revenue and operating profit for the year ended 31 December 2014 is in line with market expectations. The Group has made significant progress during this period in terms of improving revenue generation from our core Telco products whilst at the same time laying firm foundations for the development of our exciting new OTT product. We look forward to updating the market further during the announcement of SyQic’s preliminary results.”;
As reflected in the Group’s interim results, the first half of this year was significantly stronger than the same period in 2013. This strong performance continued into the second half of 2014 and revenue for the full year increased by 128% to £10.7 million (unaudited) (2013: £4.7 million). SyQic anticipates that operating profit for the full year will be in line with market expectations.
Net cash as at 31 December 2014 was £0.22m (unaudited) which, whilst below expectations, reflects the investment the Group has made into premium content licensing across its service platforms, content creation and production and the comprehensive redesign and rebuild of cool2vu, formerly known as Maaduu, the Group’s Korean drama content technology platform.
In 2015, SyQic has received a payment of RM3.2 million from our Indonesian partners that relates to billings from May and part of June 2014. The receipt of this payment brings the total sums received from the partners in respect of 2014 revenues to approximately RM8.7 million. At the same time, our partners continue to adhere to the previously agreed payment plans for 2012 and 2013 revenues. Whilst payment terms from this customer have improved during 2014, overall trade debtor balances have increased during the period, reflecting the Group’s higher levels of revenue.
The Directors anticipate that the Group’s investment into premium content licensing and the cool2vu platform provides the Company with a strong value proposition and global scalability moving into 2015. Revenue performance in January 2015 continued to remain strong and the Group anticipates this performance to continue throughout 2015.
The cool2vu platform has already begun generating advertising revenues, a major development in the Group’s desire to expand its revenue sources. Brands such as Sony, the British Council, Mamee Foods and the Star Radio Group amongst other advertisers have already committed budgets to cool2vu. SyQic is therefore expecting a positive year in terms of financial and operational progress as subscription growth from its incumbent services with its Telco partners continues as well.
The Group’s core Telco brand, Yoomob, has been established in Myanmar, a country which is experiencing a rapid proliferation of smartphones following industry deregulation, and, as announced on 3 December 2014, agreements have been reached with Telenor and Oredoo, the two largest telecoms companies in the country. SyQic’s Telco partnership with Globe in the UK, details of which were announced on 14 January 2015 is also expected to be a key driver in growing the Group’s Telco based service in Europe.
On the OTT front, the Directors consider that SyQic’s partnership with Viki, further details of which were announced on 3 February 2015, will enable the Company to expand into multiple new territories without the need to obtain new content licenses.
For further information:
Jamal Hassim, Group Chief Executive OfficerTel: +44 (0) 20 7933 8780
Steve Elliff, Chief Financial Officerwww.syqic.com
Allenby Capital Limited
Alex Price / Jeremy PorterTel: +44 (0) 20 3328 5656
Walbrook, Financial PR and IR
Paul Cornelius / Guy McDougall / Sam AllenTel: +44 (0) 20 7933 8792
Notes to Editors:
SyQic is a fast growing provider of live TV and on-demand video content across mobile and internet enabled consumer devices. Incorporated in Jersey and headquartered in the UK, it has a significant service footprint in the Philippines, Indonesia and Malaysia.
The Group has access to over 20,000 hours of premium video-on-demand content and International video content. This content is delivered through SyQic’s platforms via a number of channels in the movies, drama, music, sports, news, lifestyle and general entertainment genres.
The Group has also recently launched its newly acquired cool2vu service in Indonesia, Singapore and Malaysia, which streams high demand Korean content utilising an advertising revenue model.