15th May 2014 10:32
LONDON (Alliance News) - SyQic PLC saw pretax profit decline in its maiden set of annual results, hit by the costs of its initial public offering on AIM last December.
The mobile video content provider posted a pretax profit of GBP100,000 in 2013, down from GBP625,000 in 2012, as AIM listing costs of GBP471,000 and higher administrative expenses offset a rise in revenue to GBP4.7 million from GBP3.9 million.
Revenue growth gained momentum throughout the year, with revenues in the second half of the year almost doubling those in the second half of 2013.
The rise in administrative expenses were due to it upping head count and development costs as it rolled out its new Yoonic and YooMob products throughout the year.
When it floated on AIM in December, SyQic raised GBP2.45 million, which it has used to launch its on-demand mobile video content service Yoonic internationally, and to Bangladeshi communities in the UK and Malaysia.
After the launch of the product, the company said it has shifted its general roll-out plan to a phased plan, launching the product specifically into migrant communities internationally. It has also opted to provide a pre-pay card for the product, as some consumers prefer not to provide their payment details online.
The company said it will be rolling out Yoonic to the Filipino, Nepalese, Turkish and Polish communities over the next few months. It will also look at the Hispanic community in the US later in the year. SyQic said Yoonic is popular with migrant communities as it allows them to access content from their home countries.
Revenue in the first quarter of 2014 was GBP2.0 million, the company said, slightly down from revenue levels in the fourth quarter of 2013 which were boosted by the festive season in December.
SyQic expressed confidence in its future, saying that industry wide developments such as 'all you can eat' mobile data plans will continue to drive its services.
Shares in SyQic were trading down 25% at 55.26 pence Thursday morning
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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