Mr. Marcel Vienneau reports

MOBI724 GLOBAL SOLUTIONS REPORTS Q3 2018 RESULTS

Mobi724 Global Solutions Inc. has released its financial and operational results for the third quarter ended Sept. 30, 2018.

Following are the highlights for Q3 2018 versus Q3 2017:

• Total revenues decreased by 2 per cent to $618,000 for 2018 resulting mainly from a massive devaluation in the Argentine peso ($59,000 for Q3) and the accelerated depletion of the company's legacy business ($116,000) accounting for a decrease of 40 per cent to $72,000 from revenues from the card-linked offers and rewards (CLO&R) segment:
• • Revenues from the payment solutions segment increased 99 per cent to $96,000.
  • Revenues from the digital marketing and business intelligence (DMBI) segment decreased 3 per cent to $450,000.
• Operating expenses remained stable at $2.1-million.
• Net loss decreased 23 per cent to $1.4-million from to $1.9-million, a decrease of $500,000.

Operational highlights:

• On Sept. 26, 2018, the company signed a commercial agreement with Mercado Libre SLR in Argentina, and, on Nov. 1, 2018, the company also signed a commercial agreement with Groupo Promerica and Banco Promerica in Central America.
• The company completed the integration and testing with Prisma Medios de Pago -- one of the largest acquiring networks in the Latin America.
• The company's activities in the DMBI segment continue to show improved and promising metrics.
• The company continues to experience growth in the payment solutions segment due to an increase in sales in the Philippines and an increase in revenues derived from on-boarding additional merchants in the Caribbean.
• Revenue in the company's payment solutions segment continue to increase with a 99-per-cent increase when compared with Q3 2017 and a 33-per-cent increase when compared with Q2 2018, mainly due to the on-boarding of new merchants in the Caribbean and the new revenues from the Asia Pacific.

The company continues to progress in its efforts to build a strong base of long-term recurring revenue with both its year-to-date increase in payment cards under management and growth in its payment solutions segment. Mobi724's platform and the solutions continue to solicit strong interest from both existing and prospective clients across multiple markets. The company has progressed through these challenges and is excited about its development plan going forward as the sales pipelines continues to grow.

The implementation of process optimization initiatives resulted in a significant reduction of costs. The company continues to invest in the development of a distributed ledger architecture for the platform (blockchain) and artificial intelligence capabilities. Mobi724 is confident that these innovations will further enhance its product offerings and sales.

In the CLO&R segment in Argentina, the company continues its transition from a legacy coupon business to generating revenues from the CLO&R solutions, but sales were significantly impacted by the unfavourable decrease in foreign exchange. If the Argentine peso had not suffered such a significant devaluation, sales in the CLO&R segment would have been $131,000 instead of $72,000. To mitigate the currency risks in the future, new agreements are being pegged to the U.S. currency.

The decrease in the DMBI segment is related to a reduction in the number of accounts launched during the third quarter and due to some seasonality in this segment during the summer months.

In the payment solutions segment, the company continues to grow its revenues by on-boarding new clients in the Caribbean and extracting revenues from the sale of terminals in the Philippines. As the company diversifies its network of distributors, it expects continued steady growth in revenues from the Asia Pacific region.

Results -- Q3 2018 versus Q3 2017

Revenues for the three months ended Sept. 30, 2018, slightly decreased to $618,000 from $631,000 in Q3 2017.

Operating expenses remained stable in Q3 2018 at $2.1-million compared with the same period in 2017 despite a lower gain on settlement of liabilities of $147,000 and an increase in staff expenses of $285,000, partially offset by a decrease in contract labour of $187,000 and professional fees of $91,000.

Net loss was $1.4-million versus a net loss of $1.9-million. The decrease of $500,000 in net loss is primarily related to the decrease in other finance expenses.

The company had cash of $1-million on Sept. 30, 2018.

Cash flows used in operating activities for the third quarter of 2018 were $900,000, compared with $1.3-million for the same quarter a year ago. The decrease of $500,000 is attributable mainly to the decrease in cash flow used in non-cash working capital.

Cash flows from financing activities in the third quarter of 2018 decreased by $600,000 to $7,000 due mainly to lower proceeds from the issuance of long-term debt, partially offset by lower repayment of demand debt.

Cash flows used in investing activities during the third quarter of 2018 decreased by $500,000 attributable to the absence of business acquisition activities during 2018.

Marcel Vienneau, Mobi724's chief executive officer, said: "In the third quarter of 2018, our CLO&R segment was negatively impacted by a massive devaluation in the Argentinian peso; otherwise, this quarter would have shown material upside progress. To mitigate FX exchange risks, our present and future contracts are denominated in U.S. currency. We have diversified and expanded our operations. We achieved material progress towards the goal of launching our platform in six countries in the first half of 2019. This quarter, our pipeline is accelerating internationally, and, as such, we are very confident that we will generate material growth in revenues across all of our business lines in 2019."

About Mobi724 Global Solutions Inc.

Mobi724, a global fintech (financial technology) company, offers a fully integrated suite of multiple card-linked offers and rewards, digital marketing and business intelligence and payment solutions (including a mobile EMV-compliant (Europay, MasterCard and Visa) payment platform) that work with any payment card, on any mobile device and at any point-of-sale. Mobi724 is headquartered in Montreal, Canada, and the company presently has operations in North America, Latin America, the Caribbean and Asia Pacific.

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