19th May 2014 09:39
LONDON (Alliance News) - Shares in Mirada PLC rose Monday, after it said it expects to report improved earnings and margins for its recent financial year, and said it had secured its biggest contract to date for its multi-screen product with a Latin American digital TV operator, which it said will boost significantly earnings in the current financial year.
Mirada shares rose 14% Monday morning, trading at 16.45 pence.
The AIM firm, which creates and manages services for digital TV platforms and broadcasters, said that despite slightly lower than expected revenues in the second half of the year ended March 31, due to investments in Latin America, margins were stronger than expected, and it expects to report an improvements in earnings and net results for the year as a while.
"Rates of new subscribers gained are growing and we have seen a good momentum related to the upcoming World Cup in Brazil," said Chief Executive Jose Luis Vazquez in a statement.
Mirada said that the beginning of its current financial year has been positive, underpinned by a new major contract win in Latin America, for its multi-screen product Iris. The contract follows on from a successful USD1.4 million trial it announced in November last year, with the Latin America-based digital television operator which it didn't name.
Mirada said it expects the customer to start the commercial roll out before the end of the year, and said the contract is expected to generate significant revenues, starting in the second half of the current financial year.
"The directors believe [the revenues] should far exceed Mirada's yearly turnover over the next three to five years," the company said in a statement.
The group said the contract win represents its biggest contract to date and is a significant milestone in the company's development in the Latin American region.
"The directors believe that winning this multi-million dollar contract will further strengthen Mirada's reputation in the industry, particularly in South America, and serve a as reference point for discussions with other broadcasters and operators," the company said in a statement.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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