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Mirriad Advertising PLC on Thursday reported a drop in revenue despite growth in its US operations, as ‘inescapable’ market conditions in China persist.
For the six months ending June 30, the London-based in-content advertising technology firm widened its pretax loss to £8.4 million from £5.9 million a year before, which can be attributed to reduced sales and increased administrative expenses from investments made in US operations.
Mirriad's revenue nearly halved to £577,436 from £1.1 million a year prior, due to the ‘seasonal nature’ of key advertising markets, it said. US revenue grew 57%, however, it did not offset the significant reduction in Chinese revenue, as a result of strict Covid-19 lockdowns in the country.
No interim dividend was declared, unchanged from a year before.
Looking ahead, Mirriad expects higher revenue for the second half of the year as it plans to reduce and reprioritise expenditure through cost control measures, which are anticipated to deliver £2.5 million in savings, the majority of which will be achieved in 2023.
Additionally, Mirriad plans to reduce its operations in China and exit the market once its Tencent Holdings Ltd contract ends in the first quarter of 2023. This decision is expected to save the company around £1 million. Mirriad described the market conditions in China as ‘inescapable’.
The company said it continues to prioritise research and development to ensure it maintains a technological lead and addresses partner needs.
Chief Executive Officer Stephan Beringer said: ‘We are tracking strongly against the [key performance indicators] and are seeing a very clear acceleration of interest in the in-content format. As previously guided, we expect a stronger revenue-generating activity to be backloaded towards the end of the year, and we are within the company's expectations of cash consumption and cash balance.’
Shares in Mirriad were down 3.2% at 7.50 pence in London on Thursday.
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