Market Overview

One Horizon Group Provides Business Update for the Second Quarter 2019

Share:

MIAMI, Aug. 20, 2019 (GLOBE NEWSWIRE) -- One Horizon Group, Inc. (OTCQB:OHGI) (Company or One Horizon) today provided a business update and reported financial results for the second quarter ended June 30, 2019.

Second Quarter 2019 Highlights:

  • Launched Touchpoint, the white label development of the 123Wish platform, a next generation fan engagement platform designed for fans, brands and celebrities
  • Entered into a preliminary agreement to acquire a majority interest in Redspots Creative (Hong Kong), a multi-media production company, in a stock transaction based on post-closing, future earnings

Mark White, Chief Executive Officer of One Horizon, stated, "We made significant progress during the second quarter by introducing a new offering developed from our 123Wish Platform. Specifically, we launched Touchpoint, a next generation fan engagement platform designed to bring fans closer to celebrities by providing access to proprietary content, livestream events, as well as exclusive merchandise. We added elite model, Alexis Clark, as our first celebrity influencer to maximize engagement with her growing fan base and sponsors.  We are expecting the commercial launch of Maham LLC's yoga version of Touchpoint in the coming weeks, which will enable Maham to offer on-line and offline yoga classes, exclusive content and merchandise on the app. The platform is optimized for iOS and Android, as well as Internet and TV-based applications. Moreover, we plan to leverage other celebrity relationships through our 123Wish Platform, which we believe will help Touchpoint rapidly gain critical mass. Touchpoint is targeted to fans and brands and we expect to rapidly add more license revenue before the year end."

"We are also moving forward with our preliminary agreement to acquire a majority interest in Redspots Creative Hong Kong, a pioneer in the area of augmented/virtual reality that has developed the first virtual idol animation system aimed at both the end user and professional animators. As the AR/VR market is experiencing significant growth, we anticipate this planned acquisition to be transformational to our business and easily leveraged across our media and digital technology platforms, including Love Media House, Browning Productions and 123Wish.  We believe this transaction will be accretive to earnings and our interests are closely aligned with Redspots on several levels including the purchase price, which is based on Redspots achieving future earnings targets.  Although this transaction has taken longer than anticipated to close, we are making steady progress and look forward to providing further updates."

"Browning Productions has made significant advances with ‘Wine Warriors' and spin-offs into the beverage and spirits space. The first season of Wine Warriors, which is 12 episodes, is now available on Amazon Prime. In addition, a spin-off titled ‘Whisky Warriors' is currently in pre-production and is scheduled to launch later this year. These are expected to bring significant revenues before the year end."

"We have significantly refined our business model, which we believe provides a platform for sustained growth in future quarters.  At the same time, we are carefully managing our expenses, reflected in the reduced net loss for the second quarter of 2019.  As a result, we believe we have built a highly scalable business model with the potential to drive significant value for shareholders for years to come," concluded Mr. White.

Financial Results for the second quarter of 2019

Revenue was approximately $253,000 in the three months ended June 30, 2019 as compared to $270,000 for the three months ended June 30, 2018.

Gross margin deficit, for the three months ended June 30, 2019 was approximately $50,000 as compared to $403,000 margin deficit for the three months ended June 30, 2018, due to the decrease in amortization of software development costs.

Operating expenses, including general and administrative expenses and depreciation incurred during the three months ended June 30, 2019 were approximately $1.1 million, a significant reduction of approximately $1.7 million when compared to approximately of $2.8 million for the three months ended June 30, 2018. The major reduction in costs related to consulting costs and due diligence and advisory costs incurred in the acquisitions undertaken in 2018.

Net loss for the three months ended June 30, 2019 was approximately $1.2 million as compared to net loss of approximately $3.5 million for the same period in 2018. The decrease in the losses is largely attributable to the decrease in general and administrative expenses, as discussed above.

Financial Results for six months ended June 30, 2019

Revenue for the six months ended June 30, 2019 was approximately $454,000 as compared to approximately $544,000 for the six months ended June 30, 2018, a decrease of approximately $90,000, or 16.5%. The decrease was due to the reduction in license sales and LMH sales offset by the revenue generated by Browning.

Gross margin deficit for the six months ended June 30, 2019 was approximately $91,000 as compared to a deficit of $534,000 for the six months ended June 30, 2018, a decrease of approximately $443,000. The increase was mainly due to the reduction in amortization charge of $686,000 relating to software development costs.

Operating expenses, including general and administrative expenses, depreciation and acquisition costs were approximately $2.3 million and $5.0 million during the six months ended June 30, 2019 and 2018, respectively. The reduction in operating costs primarily related to the acquisition costs and fundraising incurred in 2018 that were not incurred in the same period in 2019.

Net loss for the six months ended June 30, 2019 was approximately $1.8 million as compared to loss of approximately $6.2 million for the same period in 2018. The decrease in loss was primarily due to the decrease in non-cash general and administrative expenses, and fundraising and acquisition costs.

About One Horizon Group, Inc.

One Horizon Group, Inc. is a media and digital technology acquisition and software company, which owns Love Media House, a full-service music production, artist representation and digital media business. The Company also and holds a majority interest in 123Wish, a subscription-based, experience marketplace, as well as majority interest in Browning Productions & Entertainment, Inc., a full-service digital media and television production company.  For more information, see http://www.onehorizoninc.com/

Safe Harbor Statement

This news release may contain "forward-looking" statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ from those in the forward looking-statements. Potential risks include such factors as the inability to enter into agreements with parties with whom we are in discussions, the uncertainty of consumer demand for the Company's products, as well as additional risks and uncertainties that are identified and described in the Company's SEC reports. Actual results may differ materially from the forward-looking statements in this press release. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and it specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.

Contact

Crescendo Communications, LLC
212-671-1021
OHGI@crescendo-ir.com 

one horizon logo (1).jpg

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com