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Myriad Group Announces Full Year 2013 Results
Stephen Dunford, CEO of Myriad Group AG, commented: "2013 has been an exciting year of rationalizing and resizing our operational structure to focus on innovating and growing our new Messenger business. I am pleased with the progress having grown our user base from under 1 million to 38 million users in Latin America and believe we are establishing a solid platform upon which we can grow a valuable business. There is a lot of momentum is this segment at the moment, as recent M&A activity in the social messaging space has demonstrated. Going forward, we look to take the success of our Latin American experience to a wider global audience as we accelerate user growth and monetize the service. "
Overview of 2013 results
Revenue for the year amounted to USD 43.2 million (USD 56.3 million in FY 2012), was down USD 13.1 million from FY 2012 due to the previously anticipated decline in mobile browser revenues, exiting from one off professional services projects and the discontinuation of other legacy products.
During the year Myriad completed a USD 36.2 million rights issue raising net proceeds to the company of USD 22.6 million after settling shareholder loans. This funding has been used to accelerate the restructuring activity in the Group, focusing on simplifying the R&D engineering structure with the closure of 5 engineering sites. This has hugely simplified the operating structure, enabling the Group to focus on delivering innovation in MSNGR in the UK led by the incoming CTO, Bruce Jackson and his new core team.
The 2013 adjusted EBITDA1 loss narrowed from USD 6.1 million in 2012 to USD 2.9 million in 2013 reflecting aggressive reductions in the cost base as we reduced our headcount and the number of engineering sites. This has not only contributed to annualised savings of USD 20.5 million, but also streamlined our development and improved product quality and performance.
Net losses were USD 42.9 million (USD 58.5 million in FY2012) reflecting underlying operating losses, impairments and non-recurring charges for restructuring.
Closing cash at 31 December 2013 was USD 12.0 million up from USD 5.9 million as at 31 December 2012. Restructuring costs, a high legacy cost base (since reduced) and non operating legacy payments continued to place demands on cash during the year.
The new MSNGR chat app user numbers grew from under 1 million to 38 million on the first real year. This growth was achieved through our strategic agreements with 16 Mobile Operators in Latin America, representing 85% of all mobile users in the region.
The Sub data business (USSD and Updates) grew to 20 million visitors with 21 new deployments with Facebook in the year. This was enhanced further with the signing of a partnership agreement with Twitter towards end 2013 providing text based messaging enabling users without a data plan to access Twitter services. This service will roll out initially in Africa and Latin America during 2014, complementing our existing Facebook service.
Our strategic partnership with Comcast built on the Reference Design Kit (RDK) Version 1.0 framework enables enhanced security and the potential for a wide range of engaging interactive consumer applications in set top boxes. RDK is being adopted widely across North America, Europe and Asia as the pay TV platform of choice for service providers, leading to significant royalties from Pace, Arris and Samsung as the new framework is adopted by the Pay TV industry.
Myriad won the 2013 Cisco Award for Software Excellence. This prestigious award recognizes the company for the quality of its device software and engineering in connection with Cisco's pay TV business.
The successful conclusion of the rights issue launched in August raised USD 36.2 million and was given overwhelming support by the shareholders for the new Management team's strategy.
Myriad looks forward to accelerating growth in its MSNGR chat application as we broaden our focus to a global market. We also expect to see more added value from our strategically placed Sub Data (USSD and Myriad Updates) business leveraging our relationships with our social media partners, Facebook and Twitter. The company will continue to simplify its operations and focus on creating value for its shareholders. Recent activity in the global social media market validates our strategic direction and motivates us to move as fast as possible.
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