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Mobile Streams – Research Note (Information Only)

What they do -

There are two main income generators of the business namely the Streams platform that provides data, marketing, business and content insight and the i-gaming legacy business.

Legacy business was mobile content including ring tones, backgrounds etc a market place worth around $4 billion per annum(15), this is now being revived by new our new management team into the highly lucrative i-gaming business worth an estimated $92 billion by 2023.

i-gaming

What is i-gaming? I-gaming is one of the fastest growing industries on the planet, online betting on the outcome of sports and events, online casino, poker, cards etc.

Brief overview of i-gaming market place -

  • -  Global online betting market expected to reach $92 billion by 2023 a 40% increase(3)

  • -  By contrast Music Industry is worth around $60 billion(6)

  • -  Over 40% of $92 billion revenue is expected to be Sports betting(3)

  • -  Mexico’s online betting market is currently worth $450 million per annum increasing

    at 25% per annum(4)

  • -  Dutch online betting industry to exceed €1.27 billion by 2025(10) -

    Mobile Streams have three entries into the i-gaming space announced so far this year.

  1. Mexico

  2. Netherlands

  3. Argentina

  4. Coming Soon..

  5. Coming Soon..

  6. Coming Soon..

According to today’s podcast(27) Mobile Streams are already working on the next 2,3,4 territories before Argentina was confirmed to market.

Experts state that, should iGaming in Brazil become entirely legal, the country could see gross

profits of $101bn by 2024(5)

Mobile Streams – Research Note (Information Only)

1 – Live Scores, Mexico

Launched and already generating revenues according to last Podcast promoted via our existing contract with mobile giants Telcel, below from RNS :-

(7)

Revenue is generated for MOS through a mixture of revenue share with Quanta and subscription

payments via the current MOS billing contract with Mexican phone network Telcel

A quick google search and we see our Mobile Gaming is live on the shop portal from Telcel https://portal.shop/index.php/suscripcion-aplicaciones.html?t_ok=4886119347084

Who are Telcel?

América Móvil (8)

That’s an incredible audience to have available for our initial launch, over half the population of Mexico, not many companies with such a small market cap can promote as easily with existing contracts.

The app is also ready for download from Mexican Google Play and soon, perhaps already, Mexico Apple app as well as via www.mobilegaming.com (owned by Mobile Streams).

Revenue estimate in RNS was $140,000 within the first year and grow significantly thereafter, this considering the popularity of i-gaming within Mexico and our marketing via the largest mobile company I expect these to be highly conservative.

We are likely to see an expansion of offerings into Mexico in my personal opinion, however Football is clearly big business as stated here:-

In the fourth quarter of 2020, Telcel, owned by

, held a 64 percent share of wireless

subscribers in Mexico. In 2019, there were approximately 121.4 million

mobile subscriptions

in the North

American country.

Mexico

Latin America,

, where nearly all kinds of gambling are explicitly regulated, is widely considered to be fertile

ground for new and expanding online casino and sportsbook operators. Like the rest of

games of chance are popular throughout the country, with bettors showing an added level of enthusiasm

when it comes to betting on football.(9)

2 – Launch first of 3 Direct to Customer Mobile Content sites – Netherlands

Netherlands i-gaming regulated industry goes live 1st October 2021, Mobile Streams together with partner Quanta Media Group are launching 3 websites aimed directly at end consumers helping them navigate where and how to play online casino, betting games.

One of a few first to market in the newly regulated market, online revenues are forecast to exceed €1 billion. If we assume Mobile Streams can obtain 1% of that market it would generate gross revenues in excess of €10 million per annum!!

Mobile Streams – Research Note (Information Only)

3 – Live Scores Argentina

New territory confirmed 13th September 2021 commencing 1st October using our existing subscription payment service with Movistar.

Based on prior notification for Mexico revenues, I assume same charging structure of $1 per week applies plus a share of affiliate revenues generated from those customers who activate an account with a casino or betting house referred directly from the App. Affiliate revenues are likely in my opinion to far exceed the $1 per week revenues generated from the application itself.

Movistar has an active subscriber base of 27 million(24)

4 – Brazil New Territory

Although there’s nothing confirming entry into this market it appears an obvious choice, the newly launched website into Mexico demonstrating live scores app is written in many languages, English, Spanish, Portuguese and Brazilian. https://futbol365.mx/en/soccer

Legacy business secured deals with all four major Brazilian mobile carriers as noted below “


(11)”

The Company has continued to deliver its strategy of launching Mobile Internet services in emerging

markets. We have continued to make progress in Brazil where services can now be billed and marketed to

consumers on all four major Brazilian mobile carriers and active subscribers have now exceeded 35,000

Experts state that, should iGaming in Brazil become entirely legal, the country could see gross profits of

$101bn by 2024(5)

A launch into Brazil and taking a 1% share of a staggering market place would truly be transformational, although I personally believe what has already been achieved is transformational and certainly not reflected in share price.

5 – Potential New Territories India, Africa & Others
Again contracts with mobile carriers from legacy business, notably India as confirmed in trading update:-


(12)

Jio is the 3rd largest Telcom’s company in the world, their gaming app has exceeded 5 million downloads whilst still in beta back in July 2020(25)

India’s i-gaming business is growing exponentially as you’d expect, again it would appear a logical stride with contracts already in place with mobile carriers.

Watch this space!

Confirmed in today’s Podcast Mark Epstein confirmed before Argentina announced to market, behind the scenes they are already working on next 2,3,4 territories for entry and how to future maximise our global user base(27).

E&OE September 2021 – Twitter @SimonSaint3
*Notes are my opinions and are intended as information only, please do your own research before buying any shares.*

The Company is currently working with some of the largest carriers in the India market: Vodafone-Idea, Jio

and BSNL.

Mobile Streams – Research Note (Information Only)

Casino Affiliate Commissions

Mentioned in RNS 13th September 2021 we know there’s affiliate revenue share with Quanta, I’m sure we will hear from the company on these figures during Q4, below is copied directly from https://www.casinorankings.com/affiliate/

Online casinos offer affiliates deals based on revenue sharing, CPA, or a hybrid of the two.

  • -  CPA or cost-per-acquisition is a fixed commission paid for each depositing player. Most casino CPAs range from $125-$400 per player, depending on the market and type of traffic you get.

  • -  Revenue share is where you get a percentage of what a player loses, minus bonuses and fees. Typically, online casino rev share deals range from 25-50%.

  • -  Hybrid deals offer a mix of CPA and rev share. For example, $50 per player + 15% rev share.

    Affiliate commissions within the industry are high as we can see from the above, it is worth noting that there are many Casino’s/gambling houses out there fighting for business, it is therefore more then likely a client can be referred to multiple sites.

    Based on just 1,000 referrals each month and a flat rate of $200 referral income, this alone is $200,000 per month, if each client is referred to one casino and one betting house that would be $400,000 each month. These are lower end estimates based on information stated above.

    Multiply above by number of territories, currently 3 this would generate additional income of $600,000 - $1,200,000 per month in addition to the telecom income of $1 per week per subscriber.

    Mergers and Acquisitions

    An industry with such huge growth is bound to attract a lot of M&A and as you would expect it is already happening, one company has just been bought for €320 million based on revenues of €25 million and net profits of €10 million, putting that another way around 13 times revenues. The business isn’t a direct comparison between the two businesses, it does however highlight the activity within this sector. (2)

    Further M&A: -

    The wild spate of mergers and acquisitions in the gambling industry continued Monday
    as DraftKings agreed to acquire Golden Nugget Online Gaming for $1.56 billion in stock.
    (13)

    $1.56 billion valuation on est. revenues of $130-$145 million(14)

 

Mobile Streams – Research Note (Information Only)

Streams Platform Software as a Service (SaaS)

What is it?

Streams selects articles from the internet that are relevant to your search data for specific industry or topic, these articles are then ranked and rated based on various data. You are able to post these articles for other team members to read on the mid-priced plan, upload directly to your social media accounts and other variables.

Doesn’t sound too exciting until you realise just how much time one can spend searching for something interesting and relevant to post on your social feeds to keep your audience interest, ensuring they are repeatedly tuning in. For those more literate than I, and marketing minded, can utilise these search results to enhance your company’s appeal and indeed impress both current and future clients with your depth of knowledge on many relevant information fronts.

Having used the system on a basic package for a few days it really is a news desk of relevant information pertinent to my particular business, putting in front of me each early morning as I login relevant information from across the globe on the searches I’d entered and generic ones of which many are available.

I found my personal knowledge of what is happening globally is enhanced with relevant information and without me spending a few hours searching, in short this system saved me time and enhanced my knowledge.

Streams is aimed at marketing for small to medium businesses although an entry level of £10.00pm and you have a daily intake of what you want, be it shares in general, specific industries, forex, crypto etc delivered to your computer for less than 33 pence a day, it is money well spent.

Bespoke Enterprise Product

The Streams enterprise platform helps marketing teams pull their business marketing data into a single platform and directly overlay with the Streams data. This provides key bespoke insights
& predictions that increase
The Streams enterprise platform helps marketing teams pull their business marketing data into a single platform and directly overlay with the Streams data. This provides key bespoke insights & predictions that increase their engagement, reach and revenue.

This is a bespoke service for larger organisations that are looking to use engagement data to integrate with their marketing efforts.

Streams activates a display of a businesses key marketing metrics and KPIs in a visual way. This is performed by integrating with the businesses existing technologies. When combined with the Streams engagement data a rich picture of consumer interests, behaviours, content scoring, social sharing, and sentiment helps marketers map out and predict their strategies.

Summary, an e-marketing department! As more clients sign I’m sure we will get more information/examples on how our system enhances our clients marketing departments.

E&OE September 2021 – Twitter @SimonSaint3
*Notes are my opinions and are intended as information only, please do your own research before buying any shares.*

Mobile Streams – Research Note (Information Only)

What does it cost?

This basic entry level costs £10 per month for a single user and with a few more bells and whistles with greater searches and multiple users there is the £150 per month option ideal for a small business.

Bespoke Enterprise product aimed at larger companies with many additional features with bespoke pricing, currently we know two of these have signed £480,000 contracts over 4 years, £10,000 per month.

Product Launch & Updates

The initial launch of the English language version of the Stream SaaS platform will target the UK and US markets, which include over 36 million SME’s.

An upgrade late May 2021x§§, quickly followed two enterprise clients worth up to £960,000 over 4 years, £10,000 per month for each contract.

According to the investor presentation December 2020(23) we can expect a further upgrade latter part of 2021 or perhaps early 2022 that will further increase the feature set and I expect price points.

Launched mid 2020 with an initial 30 partners it quickly expanded to 55 that included companies such

as Hill & Knowlton, a PR and communication business, Ionian Estates, a travel and property company,

and Bramblecrest, an outdoor furniture business.(22)

A standout of those names notified is Hill & Knowlton, quick overview here: - Group a £12 billion pound UK Company

https://www.wpp.com/companies/hillknowlton-strategies

Known clients that have signed up and notified to market via RNS –

- Tappit ( -
-
-

-

Part of the WPP

Hill & Knowlton Strategies is an American global public relations consulting company, headquartered

in New York City, United States, with over 80 offices in more than 40 countries.

£10k pm up to £480k 4 year deal)

Quanta Media Group Holdings (£10k pm up to £480k 4 year deal)

National Emergencies Trust

Orckid, a digital product and brand development agency within the Selbey Anderson Group

Education division of The Economist Group

Mobile Streams – Research Note (Information Only)

Tappit Overview

“Much more than just a cashless payment system, Tappit makes events better for everyone.
A safer, more enjoyable fan experience. Increased sales and profit. Clearer, sharper insights.”
(26)

As notified there were 55 launch partners, we can assume Tappit are one of those given our Streams solution had been used within the following examples on their website(20): -

  • -  F1 Australian Grand Prix

  • -  The Super Bowl LIV Champions Kansas City Chiefs

  • -  Jacksonville Jaguars, American Football

  • -  Manchester City Football Club

  • -  Wake Up Call festival

  • -  The Broken Heel Festival

  • -  Leopallooza Festival

  • -  Unite with Tomorrowland Barcelona

  • -  Slap! Festival

    Formidable names indeed within that list which one would assume those clients have been impressed with our offering hence contract signed post those dates.

    China Version Launched – 14th March 2020

    Mobile Streams announced a partnership with ANOTHER_ China, RNS 2nd March 2021 “first international language version of Streams, the Company’s bespoke date insight intelligence and visualisation service”.

    The bespoke service, as purchased by likes of Tappit and Quanta will take time to convert into sales, a language barrier clearly exists, translation between Chinese and English is not straightforward so there a few tweaks needed. With this is mind I expect more to come from this partnership latter part of 2021 or first quarter 2022.

    China’s a huge market with some 5 million SME’s created each year, currently there are 43 million SME’s(16)

    Our partner ANOTHER_ has worked with outstanding names such Nike, Pandora, Jack Wolfskin, and Land Rover(21)

    Overview -

  • -  55 Launch partners, some appear to now be converting to Enterprise contracts

  • -  Further upgrade of software expected soon

  • -  Tappit signed having used Streams with F1 Australia, Super Bowl Champions + many others

  • -  Current SaaS revenues of £35,000 as notified 12th July 2021

  • -  SaaS launched into China March 2021 via partner ANOTHER_ -

  • -  Tappit & Quanta signed following version 2 launched 24th May 2021.

  • -  Version 3 to be launched later this year/Q1 2022 (personal estimated timeframe)

    E&OE September 2021 – Twitter @SimonSaint3
    *Notes are my opinions and are intended as information only, please do your own research before buying any shares.*

Chinese market is one of the largest e-commerce markets in the world, worth an estimated 1.5

Trillion dollars annually(18)

Mobile Streams – Research Note (Information Only)

Source: -

  1. (1)  https://financialpost.com/globe-newswire/mobius-interactive-ltd-announces-2m-financing

  2. (2)  https://www.casinonewsdaily.com/2021/07/05/kindred-acquires-relax-gaming-in-e295mn-deal/

  3. (3)  https://www.visualcapitalist.com/the-numbers-behind-online-betting-industry/

  4. (4)  https://www.btobet.com/wp-content/uploads/2018/04/Mexico-On-the-verge-of-true-emersion-as-a-

    major-iGaming-market-in-LatAm.pdf

  5. (5)  https://www.captainwords.com/igaming-in-brazil/

  6. (6)  https://www.statista.com/statistics/259979/global-music-industry-revenue/

  7. (7)  https://www.lse.co.uk/rns/MOS/launch-of-livescores-service-in-mexico-zo5bbekx53xd7xo.html

  8. (8)  https://www.statista.com/statistics/488495/mobile-market-share-mexico-by-provider/

  9. (9)  https://markets.businessinsider.com/news/stocks/hot-and-getting-hotter-slotegrator-reports-on-

    exciting-developments-for-igaming-in-latin-america-1030681647

  10. (10)  https://sbcnews.co.uk/sportsbook/2021/06/02/dutch-online-gambling-ggr-to-surpass-e1bn-by-2025/

  11. (11)  https://uk.advfn.com/stock-market/london/mobile-streams-MOS/share-news/Mobile-Streams-plc-

    Trading-Statement/65272065

  12. (12)  https://uk.advfn.com/stock-market/london/mobile-streams-MOS/share-news/Mobile-Streams-plc-

    Half-year-Report/79578185

  13. (13)  https://www.cnbc.com/2021/08/09/draftkings-to-buy-golden-nugget-online-gaming-for-1point56-

    billion.html

  14. (14)  https://www.prnewswire.com/news-releases/golden-nugget-online-gaming-inc-reports-financial-

    results-for-the-first-quarter-ended-march-31-2021-301292884.html

  15. (15)  https://www.streetdirectory.com/travel_guide/133099/phones/average_revenues_that_mobile_ringt

    ones_make_worldwide.html

  16. (16)  https://www.statista.com/statistics/783899/china-number-of-small-to-medium-size-enterprises/

  17. (17)  https://uk.advfn.com/stock-market/london/mobile-streams-MOS/share-news/Mobile-Streams-plc-

    Launch-of-Streams-China-and-Tra/84468618

  18. (18)  https://uk.advfn.com/stock-market/london/mobile-streams-MOS/share-news/Mobile-Streams-plc-

    Partnership-to-launch-Streams-s/83914937

  19. (19)  https://investor.mastercard.com/investor-news/investor-news-details/2021/Mastercard-Recovery-

    Insights-E-commerce-a-Covid-Lifeline-for-Retailers-with-Additional-900-Billion-Spent-Online-

    Globally/default.aspx

(20) https://tappit.com/case-studies/

  1. (21)  https://uk.advfn.com/stock-market/london/mobile-streams-MOS/share-news/Mobile-Streams-plc-

    Partnership-to-launch-Streams-s/83914937

  2. (22)  https://markets.ft.com/data/announce/full?dockey=1323-14603676-

    6QTO07BP6U9M7376C18M0OVKE9

  3. (23)  https://www.mobilestreams.com/pdf/Streams-Update-20201215-online-v1.pdf

  4. (24)  https://www.bnamericas.com/en/news/telefonica-movistar-argentina-creates-30-more-video-

    network-capacity-with-enea-traffic-management

  5. (25)  https://yourstory.com/2020/07/reliance-jiogames-downloads-casual-gaming-apps-peak-india/amp

  6. (26)  https://tappit.com

  7. (27)  https://www.voxmarkets.co.uk/articles/traders-cafe-with-zak-mir-mark-epstein-ceo-mobile-streams-

    218d63f/