Myriad Group Announces First Half 2013 Results and Calls an EGM to approve a CHF 33 million Rights Issue to Support Messaging Service Growth Mittwoch, 24. Juli 2013 - 18:00
Myriad Group Announces First Half 2013 Results and Calls an EGM to approve a CHF 33 million Rights Issue to Support Messaging Service Growth
Zurich, Switzerland – 25 July 2013 – Myriad Group AG (SIX Swiss Exchange: MYRN), the company creating and connecting communities across mobile and TV, today reported revenues of USD 21.5 million for the first half of 2013.
The period has seen Myriad achieve a significant uplift in performance from its Mobile Services Division. Following updates to its Instant Messaging Service in late 2012, subscribers in Latin America have risen six fold. As a result, the company is reporting an increase in licence revenue over the previous period for the first time since H1 2010.
The company also reports today that during 1st half of 2013 it has reached 13 million registered users of its Instant Messaging Service in Latin America, a market where the company has access to a total of 450 million mobile users through its operator partners. Including new partnerships in India, Myriad has entered business relations with operators that provide service to 1 billion users worldwide. In addition, it has also seen significant growth in deployments of its Facebook for USSD service with 10 operational deployments across Africa, India and Latin America and agreements to launch the service with a further 25 operators.
With strong demand being seen for its new services, a proposition that, uniquely, brings instant messaging to the entire mobile user base including the 80% of users in emerging markets who do not have smartphones, and substantial valuations for comparable instant messaging companies in Asia and Europe, Myriad has an opportunity to deliver significant value to customers and shareholders through effective exploitation of its messaging portfolio.
At the same time, the company has seen material changes in market conditions that are accelerating the predicted decline in revenues from its legacy product lines, particularly in the Device Solutions Division.
In order to ensure Myriad has sufficient funds to successfully execute its growth strategy, while maximizing the value of its embedded software assets in the Device Solutions Division and accelerating further restructuring of the business, the Group is launching a rights issue for up to 30,566,830 shares at a subscription price of CHF 1.10 per share.
The company announces that it is calling an EGM on 15th August 2013 to consider two resolutions:
- The appointment of a Non–Executive Director
- The increase of Ordinary Share Capital
Detailed information on the rights issue and the associated EGM can be found on the company’s website at http://www.myriadgroup.com/investors/shareholder-meetings.aspx
Erik Hansen, Chairman, of Myriad Group AG, commented: “Following a challenging year in 2012, Myriad entered 2013 with a new management team, the transition process post the Synchronica acquisition close to completion, and a focus on substantial growth opportunities that it was seeking to exploit. I am pleased with the progress the company has made in the first half of the year and am confident that with strong demand being seen for its new messaging solutions and new funding in place, the company can continue to build on the platform for growth it has established during 1st half of 2013.”
Revenue for the first half of 2013 amounted to USD 21.5 million compared to USD 25.1 million for the corresponding period in 2012. The decline compared to the corresponding period in 2012 reflects a reduction in consulting services revenues across the business as we continue to focus on the more profitable revenue streams in Mobile Social Messaging.
Gross profit was USD 5.3 million for the first half of 2013, compared to USD 4.6 million for the corresponding period in 2012. Gross margin improved by 6.4 percentage points to 24.5% due to the rise in higher margin licence revenues as a proportion of overal revenues and the fall in amortisation of intangibles.
EBITDA (before restructuring charges and non-recurring items) amounted to a USD 2.3 million loss and EBITDA margin of (11)% for the period. This compares with USD 6.3 million loss and (25)% margin in the first half of 2012.
Research & Development (R&D) costs pre capitalisation and restructuring, decreased to USD 5.9 million compared to USD 10.4 million in the previous year. As a percentage of revenue, R&D was 27.5% in the first half of 2013 compared with 41.5% in the corresponding period in 2012..
Sales and marketing (S&M) costs pre restructuring, amounted to USD 3.2 million in the first half of 2013. As a percentage of revenue, S&M expenses decreased by 5.8 percentage points compared with the same period last year.
General and administrative (G&A) pre restructuring, doubtful debt and depreciation expenses decreased to USD 5.2 million from USD 6.0 million in the first half of 2013.
Managing the cost base
As the business transitions rapidly from legacy embedded software to high growth messaging services during the first half, Management has looked aggressively at our cost base as the results indicate. Management will continue to ensure that resources are allocated appropriately to drive revenue potential of the relevant business going forward.
EBIT without exceptional charges (restructuring, integration costs and non-recurring items) came to a loss of USD 7.4 million in the first half of 2013 compared to a loss of USD 15.0 million in the first half of 2012.
Net Loss for the first half of 2013 after interest and tax was USD 10.6 million (USD 9.1 million excluding exceptional charges) compared to a net loss of USD 21.3 million in the prior half year period.
Balance sheet Myriad’s balance sheet structure as at 30 June 2013 included shareholders’ equity of USD 25.3 million and an equity ratio of 25.6% (before the latest rights issue, also announced today).
Interim consolidated income statement
| HY 2013 | HY 2012 | |
License revenue | 11,273 | 10,702 | |
Service revenue | 10,196 | 14,437 | |
Total revenue | 21,469 | 25,139 | |
Cost of revenues (including amortisation) | (15,999) | (20,512) | |
Gross profit before restructuring | 5,470 | 4,627 | |
Research and development, net of capitalized costs | (4,144) | (7,529) | |
Sales and marketing | (3,169) | (5,198) | |
Doubtful debt credit / (expense) | 150 | (245) | |
General and administrative1 | (5,156) | (5,967) | |
Other income | 456 | 310 | |
EBITDA before restructuring charges | (2,261) | (6,315) | |
EBITDA margin | (10.5)% | (25.1)% | |
Restructuring and integration costs | (1,196) | (1,174) | |
Acquisition costs | - | (4,289) | |
French social plan costs not reimbursed by Sagem Wireless | (259) | (631) | |
EBIT | (8,889) | (21,052) | |
EBIT without exceptional charges | (7,434) | (14,958) | |
Financial result, net | (1,267) | (1,143) | |
Income tax (expense) / benefit | (423) | 857 | |
Net loss for the period | (10,579) | (21,338) |
Note:
(1) G&A expenses shown in the table exclude deprecation costs of USD 1,041,000 and USD 956,000 for HY 2013 and HY 2012, respectively.
Segment information HY 2013
In USD ‘000 | Device Solutions Division | Mobile | Total | ||||
1st Half Year | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
License revenue | 5,047 | 7,677 | 6,226 | 3,025 | 11,273 | 10,702 | |
Service revenue | 3,899 | 6,316 | 6,297 | 8,121 | 10,196 | 14,437 | |
Total revenue | 8,946 | 13,993 | 12,523 | 11,146 | 21,469 | 25,139 | |
EBITDA before restructuring charges and exceptional costs | 1,075 | (113) | (3,336) | (6,202) | (2,261) | (6,315) | |
EBITDA margin | 12.0% | (0.8)% | (26.6)% | (55.6)% | (10.5)% | (25.1)% | |
Restructuring and integration costs | (496) | (354) | (700) | (820) | (1,196) | (1,174) | |
Synchronica acquisition expenses | - | (4,289) | |||||
French Social Plan Costs | (259) | (631) | |||||
EBITDA | 579 | (467) | (4,036) | (7,022) | (3,716) | (12,409) | |
Balance sheet information as of 30 June 2013 / 31 Dec 2012
in USD ‘000 | 30 June 2013 | 31 Dec 2012 | ||
Current assets | 18,493 | 21,780 | ||
Non-current assets | 80,557 | 84,864 | ||
includes Intangible assets | 77,435 | 80,209 | ||
Total assets | 99,050 | 106,644 | ||
Total liabilities | 73,722 | 72,647 | ||
Total equity | 25,328 | 33,997 | ||
Equity ratio | 25.6% | 31.9% | ||
The Half Year Report 2013 is published in full on the company’s website:
http://www.myriadgroup.com/investors/financial-publications.aspx
Contacts
Mike Grant | Gary McManus | |
Public Relations | Investor Relations | |
Tel: +44 161 249 5400 | Tel: +44 161 249 5400 | |
Email: press@myriadgroup.com |
About Myriad
Myriad delivers consumer applications, messaging solutions, and embedded software to leading OEMs, mobile operators, and pay TV providers worldwide.
Our messaging services deliver email, instant messaging and social networking to tens of millions of users in Latin America, Asia and Africa. Working with some of the world’s most successful mobile phone operators, Myriad’s market leading services enable consumers to connect to Internet services they want to reach in simple and affordable ways. In many cases, Myriad’s services are providing them with their first experience of the Internet.
Our market proven and innovative connected home solutions are found in billions of mobile phones and tens of millions of set-top boxes and Blu-ray players. Myriad is now driving the convergence of mobile, tablets and TV having created a suite of exciting connected home solutions including app stores for the TV, media sharing and simple access to social networking services within a multi-device, multi-screen connected home environment.
We operate worldwide, with offices in Switzerland, France, UK, USA, Canada, Mexico, India, UAE, China, South Korea, Taiwan, Japan, and the Philippines. Headquartered in Zurich, Switzerland, Myriad is listed on the SIX Swiss Exchange (SIX Symbol: MYRN).
For more information please visit our website: www.myriadgroup.com. You can also follow us on twitter@MyriadGroup and view our YouTube Channel - YouTube.com/myriadgroupmarketing.
An die Aktionärinnen und Aktionäre der Myriad Group AG | To the Shareholders of Myriad Group Ltd. | |
Einladung zur ausserordentlichen Generalversammlung der Myriad Group AG vom 15. August 2013 | Invitation to the Extraordinary General Meeting of Myriad Group Ltd. of August 15, 2013 | |
15. August 2013, 11.00 Uhr im SIX Convention Point, Zürich | August 15, 2013, 11.00 a.m. at SIX Convention Point, Zurich | |
A. Traktanden und Anträge | A. Agenda and Proposals | |
1. Wahl von neuen Mitgliedern des Verwaltungsrats Der Verwaltungsrat beantragt, ein neues Mitglied oder mehrere neue Mitglieder des Verwaltungsrats mit einer Amtsperiode bis zur ordentlichen Generalversammlung 2014 zu wählen. | 1. Election of new Members of the Board of Directors The Board of Directors proposes to elect one or more new Members of the Board for a period until the Annual General Meeting 2014. | |
2. Ordentliche Kapitalerhöhung Der Verwaltungsrat beantragt, eine ordentliche Kapitalerhöhung nach Massgabe der folgenden Bestimmungen durchzuführen:
| 2. Ordinary increase of share capital The Board of Directors proposes to increase the share capital of Myriad Group AG as follows:
|
B. Organisatorische Hinweise | B. Organizational Remarks | |
Zutrittskarte und Stimmunterlagen Die Zutrittskarten und Stimmunterlagen werden den Aktionärinnen und Aktionären zwischen dem 2. und 9. August 2013 auf Anmeldung hin versandt. Sollten Sie die Unterlagen nicht erhalten haben, so melden Sie sich bitte vor Beginn der Generalversammlung am GV-Schalter. Wir werden Ihnen die Zutrittskarte und die Stimmunterlagen gegen Vorlage eines Identitätsausweises persönlich aushändigen. | Admission Cards and Voting Materials Admission cards and voting materials will be sent to the shareholders who confirmed their participation between August 2 and 9, 2013. Should you not have received the documents, please refer to the GM desk before the General Meeting starts. We will give you your admission card and voting materials in person against presentation of a valid identity card. | |
Stimmberechtigung und Schliessung des Aktienregisters Stimmberechtigt sind die am 31. Juli 2013, 17.00 Uhr im Aktienbuch mit Stimmrecht eingetragenen Aktionärinnen und Aktionäre der Myriad Group AG. Zutrittskarten, die aufgrund eines Verkaufs oder Zukaufs von Aktien nicht mehr gültig sind, müssen vor Beginn der Generalversammlung am GV-Schalter berichtigt werden. Das Aktienregister bleibt vom 31. Juli 2013, 17.00 Uhr bis am 16. August 2013, 8.00 Uhr geschlossen. | Voting Rights and Closing of Share Register Shareholders who have been entered into Myriad Group AG’s share register until July 31, 2013, 5.00 p.m. CET, are entitled to vote in the General Meeting. Admission cards which are no longer valid due to a sale or purchase of shares must be amended accordingly before the General Meeting at the GM desk. The share register is closed from July 31, 2013, 05.00 p.m. CET until August 16, 2013, 08.00 a.m. CET. | |
Vollmachtserteilung Aktionärinnen und Aktionäre, die nicht persönlich an der Generalversammlung teilnehmen, können sich durch eine andere Aktionärin/einen anderen Aktionär oder durch eine Drittperson vertreten lassen. Zusätzlich besteht die Möglichkeit, die Aktien durch
an der Generalversammlung vertreten zu lassen. Bitte verwenden Sie zur Vollmachterteilung ausschliesslich das Vollmachtsformular, welches Ihnen mit dem Stimmmaterial zugeht. | Representation / Voting by Proxy Shareholders who do not personally attend the General Meeting may be represented by another shareholder or a third party. Moreover, shareholders may choose to be represented in the General Meeting by
Please only use the proxy form which you will receive with your voting materials. | |
Depotvertreter Depotvertreter gemäss Art. 689d OR werden gebeten, die Anzahl und den Nennwert der von ihnen vertretenen Aktien möglichst frühzeitig dem Aktienregister (Myriad Group AG, c/o SIX SAG AG, 4609 Olten) mitzuteilen, spätestens jedoch am Tag der Generalversammlung am GV-Schalter. Als Depotvertreter gelten die dem Schweizerischen Bankengesetz unterstellten Institute sowie gewerbsmässige Vermögensverwalter. | Depositary Proxy Depositary Proxies according to art. 689d Swiss Code of Obligations are asked to report the number of shares represented by them as soon as possible, but no later than the day of the General Meeting, to the share register (Myriad Group AG, c/o SIX SAG AG, 4609 Olten). Banks according to the Federal Law on Banks and professional asset managers are depositary proxies in this respect. | |
Vorzeitiges Verlassen der Generalversammlung Sollten Sie die Generalversammlung vorzeitig verlassen, bitten wir Sie, das nicht benutzte Stimmmaterial beim Ausgang vorzuweisen, damit die Änderung in der Präsenz erfasst werden kann. | Leaving the General Meeting Early Should you leave the General Meeting early, we kindly ask you to show your unused voting materials at the exit in order to register the changes in the quorum. | |
Sprache Die Generalversammlung wird in englischer Sprache durchgeführt. Erläuterungen im Zusammenhang mit den Anträgen werden im Bedarfsfall auch in Deutsch abgegeben. | Language The General Meeting will be conducted in English. Explanations as regards to the proposals will, if necessary, also be given in German. | |
Weitere Hinweise Für Fragen im Zusammenhang mit der Generalversammlung wenden Sie sich bitte an Herrn Timo Schori, SIX SAG AG (+41 58 399 61 11). | Further Information For any questions in connection with the General Meeting, please refer to Mr Timo Schori, SIX SAG AG (+41 58 399 61 11). | |
Zürich, 25. Juli 2013 Myriad Group AG Für den Verwaltungsrat:
Erik Hansen, Präsident | Zürich, July 25, 2013 Myriad Group AG For the Board of Directors:
Erik Hansen, Chairman |
