StreamWIDE announces 2013 Annual Revenue


Paris, France – WEBWIRE – Friday, February 28, 2014

StreamWIDE (FR0010528059 – ALSTW), the specialist in next generation, value-added telephony solutions for telecom carriers, announces annual revenue of €10.8m in 2013 (for full details download attached pdf).

2013 annual revenue
The Group’s annual revenue fell by €3.8m, following a very difficult sectorial economic situation in 2013 and a negative base effect regarding License sales (+13% in 2012) and Third-party sales (+153% in 2012). The Group’s recurrent revenue (Maintenance) was up 19% over the period, and accounted for 30% of 2013 annual revenue. Revenue from Services was stable over the period, at €1.6m.

Priority given to network investments
2013 saw telecom carriers invest substantial sums in their networks (4G/LTE), to the detriment of investments in services, StreamWIDE’s core business. Furthermore, a major upheaval took place on the French telecom market, which accounts for StreamWIDE’s main clients, with the arrival of a fourth mobile carrier. This change in the model, along with heightened competition, penalized telephone services market players by having a substantial effect on ongoing projects with French clients over the second half of the year.

A negative base effect following record revenue growth of +27% in 2012
In 2013, License sales suffered from a significant negative base effect, notably as a result of a major contract signed in South America in late 2012.
Moreover, major migrations took place in 2012 and early 2013, and these operations – which generate substantial new license sales – are not recurrent from one year to the next.
The Third-party sales recorded in 2013 essentially concerned IT equipment that was acquired and resold to a North American client within the framework of the deployment of a prepaid platform. The reduction in this revenue observed in 2013 was here again due to a negative base effect, as a specific and non-recurrent major sale of third-party licenses to a French client had been recorded during the first half of 2012.The revenue split between “France” and “Export” was 40%/60% in 2013, compared with 30%/70% in 2012.
The stability in French revenue was the result of a migration operation carried out over the first half of the year, exactly the same as in 2012 for another French client. The decrease in Export revenue can essentially be explained by the negative base effect resulting from the major contract signed in South America at the end of 2012 and by lower distribution revenue than previously recorded.

Resilience of Services revenue and fine performance from Maintenance revenue
Structurally, Maintenance revenue continued to increase (+19%) following the growing volumes managed on platforms already in production and newly-installed platforms. With some warranty periods coming to an end, new maintenance flows were also recorded in 2013.Services revenue was stable over the period, and essentially came from operations to deploy and extend new platforms in the United Kingdom and North America. StreamWIDE also continued to implement its investment strategy in its convergent Online Charging System product, an activity that is continuing to record buoyant growth and for which the Group is frequently called on by carriers. Alongside SmartMSTM, this product represents a major growth route for the Group for coming years.

Buoyant prospects for the SmartMS product, innovative universal messaging application
The 4G investments and deployments that affected most countries in 2013 were necessarily carried out to the detriment of investments in services. Beyond this circumstantial effect, the sector is undergoing a major mutation and carriers now have to quickly choose between a capacity provider model and a service provider model. In most cases, this evolution is not yet effective but is blocking investment decisions regarding services.
Within this difficult sectorial and economic context, in 2013 the Group already redeployed and reorganized its development resources by notably reallocating them to “SmartMSTM” technology, a high value-added innovation with considerable marketing prospects. StreamWIDE’s strategy has consisted in repositioning itself on the application market by developing new products that can be marketed via new channels, in other words that are not exclusively aimed at telecom carriers. These substantial investments and efforts carried out by the Group resulted, in mid-February 2014, in the onlining in app stores (Google Play and App Store) of the “Bzoo messenger” application under Group’s own brand name. The development of this technology will continue in the coming months to provide this white-label IP messaging system with even more innovative features in order to address every potential market.
The SmartMSTM patented technology provides StreamWIDE with unlimited growth potential by standing out from classic solutions such as Whatsapp or Viber, each offering their own closed environment. StreamWIDE’s unifying solution, which can be marketed under white label and own-brand (Bzoo), is the one and only application that allows users to communicate, via all available formats (SMS, MMS, audio files, video files, etc.), from a single messaging environment to all of their contacts with no restrictions in terms of network, geographical region or application.

Pascal Beglin, CEO of StreamWIDE, says:
The coming months will see the materialization of the implementation of a new strategy for the Group, which has given itself the means to evolve in a sector that is undergoing restructuring and within which the trend is accelerating. Without ruling out an upturn in the Group’s traditional activity, which could take place after the ongoing phase of investments in 4G networks, the “SmartMS” product’s prospects and development via new marketing channels could enable the Group to see a return to revenue growth in the medium term, with an adapted and optimized cost structure. The solutions that have already been developed under its own brand names (Bzoo for the general public and TeamOntheRun for businesses) again illustrate the Group’s ability to provide high value-added innovative solutions that are in keeping with the sector’s current evolution and uses.



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