10/16/2019 Q3 Trading Update
RNS Number : 9992PEntertainment AI PLC16 October 2019
Entertainment AI plc ("EAI", "Group" or the "Company")
Q3 Trading Update
Entertainment AI plc (EAI: AIM), a technology and media platform company providing global audiences with frictionless, "in the moment" access to automotive and lifestyle content, is pleased to follow-up on its launch announcement on 30 September 2019 covering 1H 2019 actuals with a trading update for the 9 months to 30 September 2019.
The Company's 30 September launch on AIM was well-capitalised with £9.4 million (gross prior to transactions costs) to accelerate business growth with an experienced board and management.
Q3 Operating Highlights:
· EAI's wholly-owned media subsidiary GT Channel, Inc. ("GTC") continues to grow strongly - both global audience and net revenue
o Views and net revenues through 30 September 2019 both greater than for the whole of 2018
o YTD through 3Q actuals: YouTube audience base of automobile and associated lifestyle enthusiasts at 9.0 billion video views, up 57% (3Q 2018: 5.8 billion)
o YTD through 3Q actuals: Net Revenue $6.9 million, up 80% (3Q 2018: $3.9 million) (Net Revenue deducts YouTube commission on Google ad sales based on IFRS policy)
§ Gross ad revenue from global audience of $12.5 million at Q3
o Number of unpaid subscribers who want more GTC content increased to approximately 90 million (1H19: c. 70 million)
· EAI's wholly-owned technology subsidiary Tagasauris, Inc. ("Tag") is participating in a pilot with strategic partner Sumitomo to deliver an enriched audience viewing experience for the Rugby World Cup on Sumitomo's JSports network
o Update on Rugby World Cup pilot will be provided during November after completion
· Running start on Q4 business launch and on implementing 2020-22 growth plan
o Product development of proprietary "Micro-moments Factory"
o SaaS platform development for strategic partner audiences to enable e-commerce and enhanced ad revenue (Sumitomo: sports; Water Intelligence: sustainability)
o Scaling technology business with EIS/VCT funding
Dr. Patrick DeSouza, Chairman of Entertainment AI stated, "We are now on our way post-IPO with follow-through momentum in terms of audience growth and ad revenue. We appreciate the confidence that our institutional funding partners have in our board and team as we deploy AI and machine learning technology to expand revenue channels with e-commerce and content sharing opportunities for audiences. With our strong capital base, a rapidly growing GT Channel YouTube audience, an Owned and Operated subscriber base, and two additional strategic partners with global audiences of their own, we have already baked the foundation for a strong close to 2019 and the application of investor resources for an even faster-growing 2020. We have an exciting journey ahead and are confident that we are coming to market at the right time as media, technology and telecoms converge to provide consumers frictionless sharing and e-commerce opportunities from short-form video content."
Tel: +1 203 654 5426 or
+44 (0)7775 701 838
Patrick DeSouza, Chairman
Adrian Hargrave, CFO
Dowgate Capital Ltd (Joint Broker and Research Coverage)
Tel: 020 3903 7715
Paul Richards/Thomas Like (Analysts)
WH Ireland (Joint Broker and Nomad)
Adrian Hadden / James Sinclair-Ford / Matthew Chan
Tel: 020 7220 1666
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014
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