MONTREAL, Nov. 29, 2019 (GLOBE NEWSWIRE) — Mobi724 Global Solutions Inc. (“Mobi724” or the “Company”) (TSX-V: MOS), a fintech company that offers a suite of integrated technology-agnostic, BI & AI powered card-linked offers & reward solutions announces its Q3 2019 financial results (“Results”).
Effective September 30, 2019, in order to be consistent with the focus of its business, MOBI724’s reporting was structured to consist of a single reporting and operating segment, namely, Smart Transactions Processing. Previously, the divisional structure and the Company’s three reportable and operating segments were Card-Linked Offers & Rewards (“CLO&R”), Digital Marketing & Business Intelligence (“DMBI”), and EMV Payments (“Payments”). The single segment reporting is aligned with the organizational structure and strategic direction of the Company. The Smart Transactions Processing segment comprised of the former CLO&R and will incorporate revenues from AI enhanced products and services offering.
The Results are adjusted to the divestiture of non-core segments and are as follows:
Q3-2019 versus Q3-2018
- Revenue increase by 144% – $342K from $140K
9 months ended September 30, 2019 versus 9 months ended September 30, 2018
- Revenue increase by 59% – $703K from $443K
Monthly average net burn rate on quarterly basis:
Q3-2019 versus Q2-2019
- Net burn rate decrease by 42% – $223K from $384K
Marcel Vienneau, CEO of MOBI724 said: “In 2019 we focused on attaining the following strategic objectives: Realigning the company to focus on its core business, which is processing card-linked AI-powered offers & rewards – Smart Transactions; Reducing the burn rate & steering the company towards cash-flow positive status; Executing new contracts and scaling up commercial operations. In Q3 the integration of platforms was completed under a single architecture. We developed new strategic business relationships with global companies. Our AI development progressed and is nearing commercial production. We successfully divested some of the I.Q.7/24 customer base, while retaining the IPs, and the unique expertise of key I.Q.7/24 team members. Since its acquisition, we streamlined the operations of I.Q.7/24 and successfully brought the company to a cash-flow positive status while keeping all the IP portfolio and netting a gain on the sale of over $456k. The sale of the Company’s stake in Mobi724 Asia completed the initiative of streamlining operations and focusing on our most value creating core business. By exiting the payment division in Asia Pacific, and realigning the focus on larger accounts, we are targeting an improvement in margins and sustained growth over the coming quarters.”
Allan Rosenhek, CFO of Mobi724 commented: “We succeeded in accelerating revenues, while completing the Company’s restructuring in order to decrease the net burn rate by nearly half. We have previously stated that we anticipated a considerable increase in our core business of Smart Transactions Processing. This quarter we start seeing this increase. As a co-founder of MOBI724 and a significant shareholder, I remain confident in the future of the company.”
Additional Information – This press release should be read in conjunction with the Company’s Interim Q3-2019 Management Discussion and Analysis and Interim Q3-2019 Consolidated Financial Statements. This and additional information can be accessed under Mobi724’s company profile on www.sedar.com.
The Company is issuing this press release to correct a prior press release (issued on November 28, 2019) announcing its Q3 2019 Financial Highlights. The prior press release contained a typographical error in relation to the increase in revenue for the 9 months ended September 30, 2019 versus the 9 months ended September 30, 2018. This press release contains the correct information.
About Mobi724 Global Solutions Inc.
“Processing Smart Transactions Anywhere”
Mobi724 Global Solutions Inc. (TSX-V: MOS) is a Fintech company headquartered in Montreal, Canada. The company offers a suite of integrated technology-agnostic, BI & AI powered card-linked offers & reward solutions that work with any digital payment method, at any point of sale, both online and in physical locations. Mobi724’s global processing platform enables card issuing banks, payment networks, merchants and loyalty program operators to generate incremental revenues by driving new commercial opportunities, while delivering seamless engaging and rewarding experiences to cardholders.
Certain statements in this document, including those which express management 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute a solicitation to buy or sell any securities in the United States.
For further information, please visit www.MOBI724.com or contact:
MOBI724 Global Solutions Inc