Mobile Streams : 12 Months Financial Statements Ended 30 June 2021

MOBILE STREAMS PLC

ANNUAL REPORT

FOR THE YEAR ENDED

30 JUNE 2021

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Chairman's Statement

The Board of Mobile Streams plc presents its audited accounts for the financial year ended 30 June 2021.

In the year to 30 June 2021 Mobile Streams continued to offer games and other content direct to consumers across a wide range of mobile devices in three emerging markets, whilst focusing resources on the growth of Streams Data, the data insight and intelligence platform launched in 2020. Market conditions in Argentina in particular had an adverse effect on revenues, leading to increased losses. However, the net revenues of Streams Data for the year of £137k exceeded the £85k net revenues of the legacy content business.

Group revenue for the year ended 31 June 2021 was £395k (2020: £636k). Trading EBITDA (calculated as profit before tax, interest, amortisation, depreciation, share based payment expense and impairment of assets) was negative £940k for the year (2020: negative £610k). Loss before tax was £1,032k (2020: £1.563m loss, of which £953k was loss on derecognition of subsidiaries). Most of the reduction in revenues is attributable to challenging trading conditions in Argentina. Revenue in Argentina (which equated to 58% of Group revenue) on a constant currency basis decreased by 15.8% from AR$36m to AR$30m.

The Directors do not propose payment of a dividend (2020: £Nil). The Group had a net cash balance of £1.7m, with a

bank debt of £50k, at 30 June 2021 (2020: £1.3m cash with no debt).

The Group's principal business remains the generation of revenues through relationships with mobile operators and content aggregators. Since the year end, using the Stream Data platform and in partnership with Quanta Media Group ("QMG" or "Quanta"), the Company has launched its LiveScores football 365 service in Mexico, Argentina and Brazil. These launches have enabled the Group to reinvigorate and reverse the decline of the content business.

In November 2019 the Company announced that it would launch a new data insight and intelligence platform, called Streams, based on licensing of the KrunchData platform. The Streams business provides bespoke data and marketing services to the B2B (business to business) market and targets customers in the US, LatAm and Europe. The Company announced the launch of the Streams SaaS ("Software as a Service") platform in July 2020, and since October 2020 customers have been able to access the service and pay for it online.

The Board believes that the LiveScores services and Streams Data offering create significant opportunities for the Company to deliver growth in shareholder value via newly developed products and services. The Board continues to examine additional sources to broaden the appeal of its content business The main focus for the current year will be growing and developing the product and sales pipelines for these businesses.

During the year, the Company raised £2.2m before expenses through a Placing in March 2021 and a further £69k as a result of warrant exercises by investors in October 2020, December 2020 and April 2021. The Placing in March 2021 demonstrated strong investor support for the Group's strategy.

In March 2021 the Group acquired a 49% interest in KrunchData Limited ("Krunch") for £735k in cash and shares, with an option to acquire the remaining 51% at any time in the following two years for £735k, again in cash and shares (together the "Transaction"). As part of the Transaction, it was agreed that the revenue share agreement, under which the share of the revenues from Streams Data received by the Company would reduce from 100% to 50% from January 2022, would be terminated immediately. The Directors consider that the Group exercises control over Krunch, as the shareholders of Krunch are Directors and Senior Managers as well as shareholders of the Group, and because the Group has the right to acquire the remaining 51% at any time prior to March 2023 on fixed terms.

Also in March 2021, the Group announced that Quanta had signed a major contract to use the Streams data platform. It became clear that there were multiple opportunities to drive revenue growth via the partnership with Quanta, as a result of which the Group announced that to accelerate development of these opportunities and advance Quanta's business plans, the Group would provide Quanta a Convertible Loan Note of £250,000 (the "Loan"), with a further £250,000 to be made available subject to achieving various agreed milestones, centred around Quanta's entrance to key markets.

The Directors have carefully monitored the impact of the Covid-19 pandemic, including the current rapid spread of the Omicron variant, on the business, and at the time of writing revenues have not been affected. All our staff work from home, and the online nature of the existing business, both in terms of content delivery and revenue collection, means that we do not envisage any disruption to that business unless a prolonged economic downturn results in a rise in cancellations. The Streams Data business is also largely remote, although in the short term face to face marketing has been impacted and demand could be affected as clients themselves respond to the ongoing effects of the pandemic.

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The Directors have prepared a cashflow forecast which indicates that the current cash balances of £1.4m are expected to cover the Company's working capital requirements for the foreseeable future.

Bob Moore

Chairman

30 December 2021

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