Myriad Group Announces Strategy Update and Metrics for Versy

Myriad Connect in the cloud

Myriad is announcing its new platform-as-a-service proposition that will enable companies of all sizes to connect with their customers via their mobile devices. The cloud-based platform enables mobile operators and enterprises to develop and deliver reliable, secure and cost-effective mobile services regardless of technology or data connection; bridging the gap between basic digital inclusion and the emerging app economy in developing markets. Early focus will be in the financial services sector, providing services such as multi-factor authentication (MFA) across mobile networks in a more secure environment than exists today.

We also believe that there is great potential to use this platform to connect Internet of Things (IoT) applications. We have a unique opportunity as a provider of core USSD infrastructure to address this and are actively developing a proposition to leverage our experience.

With the positive early traction we are seeing in the transformation of the Connect Division we have decided to focus resources on the key strategic long-term value drivers for the business. We continue to manage our resources diligently and therefore have decided to reallocate existing resources away from legacy short-term revenue opportunities. As a consequence, Myriad Connect will not achieve year-on-year revenue growth in 2016 compared to 2015 as previously communicated.

Versy

Since its launch in April, Versy continues to evolve to create communities that attract and retain users. These communities drive engagement and conversation and bring like-minded people together. The platform now has over 1.2 million unique visitors per month and 388,000 registered users[1]. We will continue to strengthen the end-user proposition, our marketing approach and the feature mix to meet the needs of our users.

After six months of migrating smartphone users to the new Versy product we believe that we have reached the optimum point to balance the need to derive value from our products and conserve our resources to focus on our key strategic value propositions. With the end of free data offers from mobile partners and the relative cost required to maintain the Versy Lite service, we have decided that it is the right time to end of life Versy Lite.

Stephen Dunford, CEO of Myriad Group said: "We have made vital steps forward with both Myriad Connect and Versy and believe we are well-placed to grow the business around the two propositions and the robust and innovative technologies on which they are built. Versy is now clearly differentiated around communities, but will need more time to refine its user proposition on which to grow an engaged user base. With our deep knowledge and expertise in key network infrastructure and the strong partnerships we have built with operators, we see Myriad Connect services for enterprise, such as enhanced multi-factor authentication, mobile identity and the potential for IoT applications as great opportunities and look forward to developing this business in 2017."

Myriad Group AG will be holding an investor and analyst meeting at SIX Swiss Exchange, Selnaustrasse 30, Zurich on Tuesday 8th November. Coffee and refreshments will be served from 10:30 a.m., with the presentation commencing at 11:00 a.m. to 12:00 noon. This will include more information on the Company's business and product strategies and provide an opportunity for Q&A with Management.

Please contact investor_relations@myriadgroup.com to register and confirm attendance at this event.

[1] Registered users and monthly unique visitors at 30th September 2016.

ENDS