TV streamer TV2U reports first revenue but loses two directors
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Aspiring online TV broadcaster TV2U today announced its first revenue in a deal to roll out their services out to Indonesia — just days after chief executive Andy Brown and director Peter Cunningham resigned.
Founder Nick Fitzgerald will assume the role of chief executive as the company begin its search for a new chairman.
The stock (ASX:TV2) climbed 22.2 per cent to trade at 1.1c in Monday lunchtime trade.
TV2U did not say how much revenue it had banked — only that Indonesian-government owned telco PGAS had paid “a deposit for hardware and installation costs”. The balance of the payment was due in December.
Back when the announcement was made in June, TV2U said it would raise an initial invoice for $640,000 — payable in July. The company has been contacted for comment.
The PGAS service — which has a potential audience of 61 million Indonesian households — was originally due to start in September.
TV2U provides a white-label, Netflix-like Internet TV service featuring movies, TV and karaoke from Latin America and Chinese networks to telcos in return for monthly fees.
Mr Fitzgerald acknowledged delays in launching the service.
“Today is not a new beginning but it is a defining moment in our history as we move towards a strong reoccurring revenue base…” he told investors.
TV2U’s September quarterly showed just $4000 in the bank, with outflows expected in the realm of $975,000.
The outgoing chief executive, in the job for just seven months, described the operation as ‘frankly, majorly under-resourced’ in an announcement to market in September.
Last year’s annual report showed a net loss of $9 million but the company raised $1.1 million through the issue of convertible notes earlier this year and intend to raise another $1.4 million then $1.6 million later this year.
TV2U, which has no sales revenue, is planning to launch operations in Brazil in the coming months following an Indonesian launch.