News blog

SyQic

  • BY: Andrew Hore |
  • POSTED: 03/12/2014 |

SyQic says that Yoomob has generated revenues of 7.6m in the nine months to September and that puts the company in a strong position to achieve the 2014 revenues of 9.5m currently forecast by house broker Allenby. 

SyQic provides live and on-demand TV access for mobile internet-enabled electronic devices via a subscription service. It reported a jump in interim profit from 35,000 to 960,000 on a 424% increase in revenues to 4.59m. There was a 548,000 cash outflow in the first half of 2014.

Indonesian telecoms company PT Nextnation Prisma (PTNP) is continuing with its payment plan for past years and it has paid the money it owed for January and February this year. The March and April payments are expected before the end of 2014.

Allenby still expects SyQic to generate cash in the second half but this may depend on the timing of the March and April payments from PTNP. The cash outflow is expected to fall to 278,000 for the full year - based on a reported 2014 profit of 1.86m. Any additional revenues and profit are unlikely to improve cash flow at this point in the year.

The forecast for cash generated during 2015 is 4.12m. That cash inflow includes payments relating to previous years and is on the back of a profit forecast of 4.22m.

SyQic has launched a mobile service in Myanmar offering Yoomob audio and video content over the Telenor and Ooredoo networks. Both of these are large businesses but it is unclear how many subscribers they have in Myanmar. The current level of users is likely to be low but there is scope for growth.

SyQic has also signed an agreement with Hong Kong-based Catalyst Gaming Corporation, which will provide access to bingo and gaming products for a SyQic social gaming channel.

At 59.5p a share, up 2p, SyQic is valued at 16m. That is around four times forecast 2015 cash flow. That does not appear high but SyQic still has to gain confidence by demonstrating that it can meet the 2014 cash flow forecast. The share price could move higher once that confidence is gained. 

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