MONTREAL, Nov. 30, 2018 (GLOBE NEWSWIRE) — MOBI724 Global Solutions Inc. (“MOBI724” or the “Company”) (TSX-V:MOS) (OTCQB:MOBIF), a global Fintech company offering a fully integrated suite of multiple Card-Linked Offers and Rewards (“CLO&R”), Digital Marketing and Business Intelligence (“DMBI”) and Payment Solutions (“Payment”) announces its financial and operational results for the third quarter ended September 30, 2018. 

Following are the highlights for Q3 2018 vs. Q3 2017.

• Total revenues decreased by 2% to $618K for 2018 resulting mainly from a massive devaluation in the Argentinian Peso ($59k for Q3)and the accelerated depletion of our legacy business ($116k) accounting for a decrease of 40% to $72K from revenues from CLO&R
  • Revenues from Payment increased 99% to $96K
  • Revenues from Digital Marketing and Business Intelligence decreased 3% to $450K

• Operating expenses remained stable at $2.1M

• Net loss decreased 23% to $1.4M from to $1.9M a decrease of $0.5M

Operational Highlights:

• On September 26, 2018, we signed a commercial agreement with Mercado Libre SLR in Argentina and on November 1, 2018, we also signed a commercial agreement with Groupo Promerica, Banco Promerica in Central America.
   
• We completed the integration and testing with Prisma Medios de Pago – one of the largest acquiring networks in the Latin America.
   
• Our activities in the DMBI segment continue to show improved and promising metrics.
   
• We continue to experience growth in the Payments segment due to an increase in sales in the Philippines and an increase in revenues derived from onboarding additional merchants in the Caribbean.
• Revenue in our Payment segment continue to increase with a 99% increase when compared to Q3 2017 and a 33% increase when compared to Q2-2018 mainly due to the onboarding of new merchants in the Caribbean and the new revenues from the Asia Pacific.

We continue to progress in our efforts to build a strong base of long-term recurring revenue with both our year to date increase in payment cards under management and growth in our Payment segment. MOBI724’s platform and the solutions continue to solicit strong interest from both existing and prospective clients across multiple markets. We have progressed through these challenges, and are excited about our development plan going forward as the sales pipelines continues to grow.

The implementation of process optimization initiatives resulted in a significant reduction of costs. The Company continues to invest in the development of a distributed ledger architecture for the platform (blockchain) and artificial intelligence capabilities. MOBI724 is confident that these innovations will further enhance its product offerings and sales.

In the CLO&R segment in Argentina, the Company continues its transition from a legacy coupon business, to generating revenues from the CLO&R solutions but sales were significantly impacted by the unfavourable decrease in foreign exchange. If the Argentinian Peso had not suffered such a significant devaluation, sales in the CLO&R segment would have been $131K instead of $72K. To mitigate the currency risks in the future new agreements are being pegged to the US currency.

The decrease in the DMBI segment is related to a reduction in the number of accounts launched during the third quarter and due to some seasonality in this segment during the summer months.

In the Payment segment, the Company continues to grow its revenues by onboarding new clients in the Caribbean and extracting revenues from the sale of terminals in the Philippines. As the Company diversifies its network of distributors, we expect continued steady growth in revenues from the Asia Pacific region.

Results – Q3 2018 vs. Q3 2017:

Revenues for the three months ended September 30, 2018, slightly decreased to $618K from $631K in Q3 2017. 

Operating expenses remained stable in Q3 2018 at $2,1M compared to the same period in 2017 despite a lower gain on settlement of liabilities of $147K and an increase in staff expenses of $285K, partially offset by a decrease in contract labour $187K and professional fees $91K.

Net loss was $1.4M vs. a net loss of $1.9M. The decrease, of $0.5M, in net loss is primarily related to the decrease in other finance expenses.

The Company had cash of $1.0M on September 30, 2018.

Cash flows used in operating activities for the third quarter of 2018 were $0.9M compared to $1.3M for the same quarter a year ago. The decrease, of $0.5M, is attributable mainly to the decrease in cash flow used in non-cash working capital.

Cash flows from financing activities in the third quarter of 2018 decreased by $0.6M to $7K due mainly to lower proceeds from the issuance of long-term debt, partially offset by lower repayment of demand debt.

Cash flows used in investing activities during the third quarter of 2018 decreased by $0.5M attributable to the absence of business acquisition activities during 2018.

Marcel Vienneau, MOBI724’s CEO, said: “In the 3rd quarter of 2018, our CLO&R segment was negatively impacted by a massive devaluation in the Argentinian Peso otherwise this quarter would have shown material upside progress. To mitigate FX exchange risks, our present and future contracts are denominated in US currency. We have diversified and expanded our operations. We achieved material progress towards the goal of launching our platform in six (6) countries in the first half of 2019. This quarter our pipeline is accelerating internationally and as such, we are very confident that we will generate material growth in revenues across all of our business lines in 2019”.

About Mobi724 Global Solutions Inc.

“We enable smart transactions anywhere.”

MOBI724, a global Fintech company, offers a fully integrated suite of multiple Card-Linked Offers and Rewards, Digital Marketing and Business Intelligence and Payment Solutions (including a mobile EMV compliant payment platform), which work with any payment card, on any mobile device and at any Point of Sale. MOBI724 provides turnkey solutions for card associations, card issuers, banks, retailers, manufacturers, offer providers, to create, manage, deliver and track and measure incentive campaigns worldwide in real time. The company captures value from big data to deliver seamless and personalized user experiences for the benefits of all parties in the ecosystem. MOBI724 headquarters are in Montreal, Canada, and the company presently has operations in North and Latin America, the Caribbean and Asia Pacific.

Legal Disclaimer

Certain statements in this document, including those which express management expectations or estimations with regard to the Company’s future performance, constitute “forward-looking statements” as understood by applicable securities laws. Forward-looking statements are, of necessity, based on a certain number of estimates and hypotheses; while management considers these to be accurate at the time they are expressed, they are inherently subject to significant uncertainties and risks on the commercial, economic and competitive levels. We advise readers that these forward-looking statements are subject to risks, uncertainties, and other known and unknown factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. Investors are advised to not rely unduly on the forward-looking statements. This advisory applies to all forward-looking statements, whether expressed orally or in writing, attributed to the Company or to any individual expressing them in the name of the Company. Unless required by law, the Company is under no obligation to publicly update these forward-looking statements, whether to reflect new information, future events, or other circumstances.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release does not constitute a solicitation to buy or sell any securities in the United States.

For further information, please visit www.MOBI724.com or contact:

Investor Relations:

Mr. George Aizpurua
Vice-President, Communications
First Canadian Capital Corp.
T: 647-500-2389/416-742-5600; E: [email protected] 

Ms. Rachel Girard, CPA, CA
Chief Financial Officer
MOBI724 Global Solutions Inc.
T: 514-394-5200; E: [email protected]