Phorm Corporation Limited

Interim Results for the Six Months Ended 30 June 2014 - Seite 2

I am pleased to present the group's unaudited interim results for the six month period to 30 June 2014. The unaudited consolidated results show that the group's financial loss narrowed in the six months ended 30 June 2014 compared to the equivalent period in 2013. This reflects the fact that Phorm is now entering the revenue growth phase of its business.

Phorm is now in the fortunate position of having set the foundations for achieving substantial growth. As set out in the Company's previous financial statements, revenue growth is a function of the interaction between deployed internet service provider ("ISP") users, partnerships which bring us inventory in the form of advertising requests, and advertising campaigns sold and successfully delivered. Accordingly, users, advertising requests and advertising campaigns are the fundamental drivers of revenue.

Users

The Company's technology is currently deployed with 10 ISPs worldwide, compared to only 1 ISP a year ago. We therefore have a substantially greater number of users than this point last year. In late June 2014, we announced that peak daily unique users had grown from approximately 0.8m to 37.8m and this figure is currently in excess of 40m.

Advertising requests
The access to inventory, which we currently enjoy, grew from 22.3bn requests in H2 2013 to 67.3bn by the end of H1 2014 and this growth trend is continuing as more publishers join Phorm's network.

Advertising campaigns

The number of advertising impressions served has similarly increased, from approximately 0.8bn impressions in H2 2013 to 2.6bn by the end of H1 2014. Our advertising campaign pipeline is continuing to strengthen and the total value of the opportunity pipeline (defined as specific campaign opportunities that are currently being discussed with advertising and agency partners) has grown to over $2m, which demonstrates advertiser confidence in our proposition and the performance of our system.

As we continue to bring these campaigns online, the imperative is to ensure that the performance, that we are able to secure for advertisers, matches or exceeds the groundbreaking performance levels which we achieved in Turkey as announced to the market in late September 2013. Achieving sufficient user numbers, to run multiple, large-scale commercial campaigns, remains an important goal in Turkey and it is expected that this situation will improve over time.