News blog

Mirada

• BY: Andrew Hore |
• POSTED: 26/12/2012 |

Interactive TV content software provider Mirada has won a contract worth more than $2m over the next two years.

Mirada is supplying the browser-based Electronic Programme Guide (EPG) for a new digital satellite TV service from a broadband and telephony operator in Latin America. Mirada will earn set-up fees and then revenues based on the number of subscribers. There will also be annual support and maintenance fees.

New business in Brazil and Mexico is helping Mirada move into profit this year. Mirada is forecast to make a profit of £1.41m in the year to March 2013, which would put the shares on around 18 times prospective earnings.

The interim profit of £25,000 was the first in the company’s history. Nealry all of the revenues are coming from the company’s content management tool for digital TV. There was positive cash flow from operations and even after capital investment there was a small cash inflow.

GVT of Brazil is a major customer and it added 200,000 new subscribers in the six months to September 2012. Mirada benefits from volume-related growth because it receives a monthly payment per subscriber. The launch of the content management software with a Mexican broadcaster will further boost revenues.

Mirada is more flexible than its larger competitors and this helps it win business but Mirada remains a small company. The Brazil contract was won via a partnership with Ericcson. This partnership could also help Mirada move into eastern Europe and Asia. Colombia is a potential new market in South America for Mirada.

At 13.25p a share, Mirada is valued at £4.7m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFDecember2012_39.pdf