MONTREAL, Nov. 29, 2017 (GLOBE NEWSWIRE) -- MOBI724 Global Solutions Inc. (“MOBI724” or the “Company”) (CSE:MOS) (OTCQB:MOBIF), a FinTech leader offering all in one fully integrated EMV payment, Card-Linked Offers, Digital Marketing and Business Intelligence Solutions, today reported its financial results for the third quarter ending September 30, 2017.
Q3 2017 was a solid quarter for Mobi724 in many areas including the start of commercialization of the important Visa partnership, new sales contracts, a substantial increase in the sales pipeline, and a $1 million financing from BDC Capital to complement the Company’s already strong cash position.
MOBI724 announced that revenues for the nine months ended September 30, 2017 increased to $2.059 million from $1.924 million in the same period last year. In the important card linked offers vertical, revenue grew 61% to $462K. Card Linked Offers is the line of business where we expect significant growth, as the Visa Offers partnership began commercial rollout in late-2017 and is anticipated to start recording material transactional revenue by mid-year 2018.
The commercial roll-out of the Visa partnership, which started in October 2017, offers significant opportunities starting in Q2 2018 for MOBI724 including:
- Shortening of the sales cycle by enabling us to leverage Visa’s key accounts, contacts and card issuers.
- Opportunity to benefit from co-marketing and financial resources ear-marked by Visa for the implementation of MOBI724’s go-to-market strategy.
- First to market in the region.
The Company incurred an operating loss of $5.2M for the 9-months ended September 30, 2017 vs. a loss of $1.9M in 2016. Of this loss, $1.6M are non-cash charges relating mainly to amortization and share-based compensation. Though revenues increased period over period, this increase was more than offset by increased operating expenses related to higher labour costs, business development and IT activities as well as increased professional fees related to the April financing.
The higher net loss is related to the increase in the operating loss and higher non-cash accounting charges at $4.7M primarily associated with the increase in fair value adjustment on liability for the acquisition of Mobi724 Solutions Inc.
The Company continues to seek opportunities to enhance cost efficiencies. As such, the digital marketing team was moved to the Company’s head office in Q3, helping to reduce costs and improve cash flow going forward.
The Company ended Q3 2017 with $5.9M of cash.
Key Highlights for 2017 include:
- Completed an oversubscribed $10M private placement (Q2 2017)
- Completed acquisitions (iQ 7/24 Inc. and Mobi724 Solutions Inc.) (Q2 2017)
- Completed USA stock listing (OTC-QB) (Q2 2017)
- Increased sales and IT teams with experienced and talented resources (Q2 and Q3 2017)
- Payment gateway and POS certification achieved in the Philippines (Q3 2017)
- Integration of Mobi724’s platform with Visa Offers Platform and start of co-marketing/commercial rollout with Visa (Q4 2017)
- TSXV application process in an advanced stage and expected completion in Q1 2018
- Number of payment cards under contract has doubled in 2017 (from 4 to 8 million)
- Commenced commercialization in Q3 2017 of the co-marketing partnership with CrediBanco (the largest payment processor in Columbia) to integrate Mobi724’s card linked offers platform with CrediBanco’s payment card issuers and merchants
- Solid sales pipeline for Q4 2017 and FY 2018
CEO Marcel Vienneau stated: “With the successful integration of the Visa Offers Platform, we have started commercial roll-out in LatAM. With the completion of the $10.3 million private placement, we are fully funded and focused on securing growth, delivery on existing contracts, and building out our infrastructure and management team.” The CEO also noted that “we are confident that Q4 2017 will be our strongest quarter yet in terms of revenue and we remain extremely bullish on the prospects for strong growth in FY 2018 as revenues from the commercial rollout of the Visa partnership kick in.”
About MOBI724
We enable smart transactions anywhere
MOBI724, a leader in the FinTech industry based in Montreal (Canada), offers a unique and fully integrated suite of payment & digital marketing solutions with a combined EMV Payment, Card Linked Offers, Digital Marketing & Business Intelligence platform that works on any card and any mobile device. MOBI724's solutions add value to all types of transactions benefiting banks, retailers and cardholders by leveraging available user and purchasing data to increase transaction volumes and spend. MOBI724 provides a turnkey solution to its clients to capture card transactions on any mobile device, at any point of sale or from any payment card. MOBI724 provides its customers with full and comprehensive traceability and enriched consumer data through its offering. Its solutions enable card associations, retailers, manufacturers, offer providers, mobile operators and card issuers to create, manage, deliver and "track and measure" incentive campaigns worldwide to any mobile device and allow its redemption at any point of sales.
Forward-Looking Statements
Certain statements in this document, including those which express management's expectations or estimations with regard to the Company's future performance, constitute "forward-looking statements" as understood by applicable securities laws. Forward-looking statements are, of necessity, based on a certain number of estimates and hypotheses; while management considers these to be accurate at the time they are expressed, they are inherently subject to significant uncertainties and risks on the commercial, economic and competitive levels. We advise readers that these forward-looking statements are subject to risks, uncertainties, and other known and unknown factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. Investors are advised to not rely unduly on the forward-looking statements. This advisory applies to all forward-looking statements, whether expressed orally or in writing, attributed to the Company or to any individual expressing them in the name of the Company. Unless required by law, the Company is under no obligation to publicly update these forward-looking statements, whether to reflect new information, future events, or other circumstances.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The Canadian Securities Exchange (CSE) has not reviewed this news release and does not accept responsibility for its adequacy or accuracy.
For further information contact:
Proconsul Capital Ltd.
Andreas Curkovic
416-577-9927