Mobile Streams PLC (AIM: MOS) share price down after the company transitioning from legacy content to sports media and betting markets, has announced its audited results for the fiscal year ended 30 June 2024 and provided details of its Annual General Meeting (AGM).
Key Financial Highlights
- Revenue: £436k (2023: £1,824k), reflecting a shift from legacy operations to new ventures in Mexico.
- Gross Profit: £388k, significantly improved from £12k in 2023, with a gross profit margin increase from 1% to 89%.
- Loss Before Tax: £959k, a substantial reduction compared to a £3,789k loss in 2023.
- Net Cash Position: £235k at 30 June 2024, supported by post-year-end funding of £1.6m through warrant exercises, increasing liquidity to £1.42m by December 2024.
Strategic Highlights
- Mexico Sports Media and Betting Market (BET):
- Acquired a 25% equity stake in a Mexican casino and sportsbook operator.
- Invested in a 10% stake in Capital Media Sports, owner of the sports publishing brand Estadio.
- Generated £350k in revenues from BET-related development work in FY2024.
- Plans to integrate NFT products into the BET loyalty program.
- Operational Streamlining:
- Focused resources on the Mexican BET business while winding down legacy operations in Argentina, India, and elsewhere.
- Legacy revenue dropped to £86k, and Argentine operations are set to close with minimal cost implications.
- Cost Management:
- Marketing costs reduced to £82k (2023: £876k).
- Administrative expenses (excluding amortization) reduced to £1,397k (2023: £1,923k).
Key Developments and Future Plans
- BET Launch: On track for a commercial rollout in Mexico, including online betting and sports podcast services.
- Funding Rounds: Raised £675k in December 2023 and £470k in early 2024 to fund Mexican operations.
- Warrant Exercises: Significant warrant activity contributed £1.6m in funding post-year-end.
- Transition of NFT Platform: Moving from standalone collections to supporting BET’s loyalty program.
Principal Risks and Mitigations
- BET Business Execution: Risks mitigated by active board involvement and partnerships with experienced industry players.
- Currency Risks: Revenue from Mexico denominated in GBP mitigates fluctuations in the Mexican Peso.
- Key Personnel Dependencies: Addressed through competitive remuneration and incentives.
- Technology Risk: Leveraging resilient cloud-based infrastructure to ensure platform stability.
Corporate and Governance Updates
- AGM Details:
- Date: 16 January 2025.
- Time: 11:00 AM.
- Location: 12 Hay Hill, Mayfair, London, W1J 8NR.
- Board Strengthening:
- Appointment of Stefano Loreti in October 2024, bringing extensive experience to support growth.
- Section 172 Statement: Directors highlighted their commitment to balancing long-term success, stakeholder interests, and regulatory compliance.
Outlook
Mobile Streams aims to establish a world-class sports media group, leveraging its BET investments in Mexico to drive significant revenue growth in 2025. With strengthened financial liquidity and a focused strategy, the Board is confident in the company’s ability to achieve sustainable operational profitability.
For more details, visit the company’s website: www.mobilestreams.com.
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