DGAP-News: Mobile Loyalty plc releases first quarter 2012 update

DGAP-News: Mobile Loyalty PLC / Key word(s): Quarter Results
Mobile Loyalty plc releases first quarter 2012 update

01.06.2012 / 11:32

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Mobile Loyalty plc releases first quarter 2012 update

London/Frankfurt/Malmö, May 31, 2012

Mobile Loyalty plc, the mobile advertising company traded on Frankfurt Open
Market (ticker: M8L) and AktieTorget, Stockholm (ticker: MOBI SDB) (the
–Group–), announces an unaudited operational and financial update for the
three months ended 31 March 2012.

Starting in 2011, the Group is transitioning into a more sales and
marketing driven organization, a process that has continued during the
first quarter of 2012. Two new morning paper customers, namely Ystads
Allenhanda and Trelleborgs Allehanda, were successfully launched during the
first quarter. With these two new titles being serviced by Mobile Loyalty
the number of advertisers in our system continues to grow. The total number
of active advertisers in Mobile Loyalty–s system across different titles
has grown to close to 400, of which the majority was signed up for during
the last 6 months.

As previously communicated, Mobile Loyalty signed an agreement with TV4
regarding a new mobile advertising service. The project was started in Q1
and is running on schedule with a launch target in the second half of 2012.

We continue to execute the growth strategy that was established in the
beginning of 2011. Part of this strategy was to gain expertise, scale and
customers by pursuing acquisitions. In January, 2012 the acquisition of
Encons Nordic AB (–ENC–) was finalized. The integration of the ENC
organization and product offering is progressing according to plan. To
leverage ENC–s sales organizations and customer base within the Group, all
the products and services from both ENC and Mobile Loyalty Europe AB (–ML
Europe–) for media advertising solutions will be merged into one sales and
marketing organization. Furthermore the acquisition of Scandvision Holding
AB (–Scandvision–) was successfully closed in March, 2012. The Scandvision
acquisition complements the Group–s total offering and brings additional
value to new and existing customers across all our target segments
including brand communication, media, and advertising.

The Group–s customer pipeline is growing and during the first quarter of
2012 additional resources were brought in to strengthen the project
delivery organization in order to manage and execute multiple customer
projects in parallel. Additional suppliers and vendors have been identified
and assessed in order to prepare for a more aggressive roll-out of services
to our customers. Indeed, there has been a significant increase in interest
from international customers and potential partners from outside the Nordic
market, and our efforts in ramping up our delivery organization will also
address the need for parallel customer delivery teams and increased
customer support.

Comments to the financial statements

This report presents the consolidated financial statement for the Group
that for the first time also include Encons Nordic AB (transaction closed
18 January 2012) and Scandvision Holding AB (acquisition closed 1 March
2012). The 31 March 2012 consolidated income statement comprises 3 months
of Mobile Loyalty Europe AB, 3 months of ENC, and 1 month of Scandvision
Holding AB. The 31 March 2012 consolidated balance sheet represents Mobile
Loyalty Europe AB, Mobile Loyalty plc, Encons Nordic AB, and Scandvision
Holding AB as at 31 March 2012.

– Sales for the quarter increased to EUR 518,000 (1Q11: EUR 98,000).

– Core EBITDA for the quarter was EUR -351,000 (1Q11: EUR -74,000). Core
EBITDA reflects the operating result before exceptional items, one-off
charges associated with the IPO and capital raising efforts.

– Loss before tax was EUR -932,000 (1Q11: EUR -182,000).

Corporate finance related activities

In Q1 2012, the Group completed two successful capital raising activities
that resulted in approximately EUR 1,3 million in new capital.

In March, the Group successfully placed 4,000,000 shares at EUR 0,23 per
share, consisting of a mix of new shares and treasury shares obtained
through the Scandvision acquisition, thus raised a total of EUR 904,000 in
new capital. This fundraising activity was initiated to enable the Group to
further develop the new product category together with TV4 as described
above. Additional 1,000,000 shares were subscribed for by the founder of
the company, pending an approval from the 2012 AGM on May 31, 2012.

As part of the Group–s overall strategy to focus on a more aggressive
market rollout and an extended delivery organisation in the target media
segment, the Group–s organisational structure will be subject to further
review. The minority stakes in associated companies will be either fully
integrated or divested. As a first step, the Company divested its minority
stake in Scandvision CPH A/S as communicated in late May, 2012.

As to further boosting the Group–s overall corporate governance, the Group
has recruited key competencies in order to build a stronger management team
as well as to build for growth and international expansion. For example,
the Group appointed Mr. Ulf Angelin as the group CFO in the first quarter
of 2012.

Based on statistics and feedback from our existing customers who are now
using Mobile Loyalty–s service for their mobile offering, in combination
with the development of the mobile market, we are receiving confirmation as
regards to the market development and projections we envisioned and planned
for a year ago. This is strongly validating the Group–s strategy. We now
have a number of customer reference cases that provide us with necessary
validation of the Group–s technology as well as its business model.

We are looking very much forward to a very busy period, where customer
delivery execution and performance will be key elements for our success.

On behalf of the Board of Directors

Nicklas Gerhardsson
CEO

About Mobile Loyalty Group

Mobile Loyalty offers unique solutions and services in the most rapidly
growing sector of marketing and advertising – mobile advertising – that is
projected to grow from USD 1.6 billion in 2010 to USD 20 billion in 2015
according to the Gartner Institute.

Mobile Loyalty–s business model is built around revenue sharing with its
customers who primarily operate in two sectors:

* Advertising platforms for the media segment, for example newspapers,
magazines, TV, and radio.

* Advertising and communication solutions for brand companies and retail.

Mobile Loyalty plc is listed on the Open Market Stock Exchange, Frankfurt
(ticker M8L) since July 2011 and on AktieTorget, Stockholm (ticker MOBI
SDB) since January 2012. Mobile Loyalty Group includes Mobile Loyalty
Europe AB, Scandinavian Advertising, Scandvision Holding AB and Encons
Nordic AB. Mobile Loyalty has about 50 employees.

For more information, please contact:

Nicklas Gerhardsson, CEO
ng@mobileloyalty.com

Sterner de la Mau, CBDO
sdlm @mobileloyalty.com

Ulf Angelin, CFO
ua@mobileloyalty.com

About Mobile Loyalty plc

Mobile Loyalty is a leading service provider in the personalized mobile
advertising arena. The Company–s solutions are offered on a Software as a
Service (SaaS) basis that makes it possible for media and brand companies
to effortlessly launch mobile advertising services within a few weeks. A
key benefit for media companies is that they can quickly generate new,
incremental advertising revenues without making any investments in
development and technology. Media and brand companies also avoid the work
associated with developing, adapting, and maintaining new mobile apps and
mobile web sites as new platforms and technologies are being launched at a
constantly higher speed.

End of Corporate News

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