Aiming to raise up to $75 million from going public, but dependence on carriers raises warning bells.
Mobile TV firm MobiTV is the latest technology company to file for an IPO in the US, looking to raise up to $75 million from going public.
That also means the company has filed an S-1 document with the SEC regulatory authority, so potential investors (and journalists) can scrutinise its finances.
The document reveals that MobiTV's revenues were $55.6 million in 2008, $62.5 million in 2009 and $66.8 million in 2010, while the company generated $37 million of revenues in the first half of 2011.
However, MobiTV is not profitable, having recorded a net loss of $25.2 million in 2008, $14.6 million in 2009, and $14.7 million in 2010. Its losses in the first half of 2011 were $8 million.
Other stats from the prospectus: MobiTV streamed 1.4 billion minutes in 2010, up from 264 million back in 2007. However, what may give investors pause for thought is the company's current reliance on three US operators for most of its business.
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According to MobiTV, in the first half of 2011, Sprint accounted for 49% of its revenues, while T-Mobile USA was 22% and AT&T was 20%. That's 91% of revenues from those three carriers alone, and their licensing agreements are all limited.
"Beginning September 2012, the term of our agreement with Sprint converts to a month to month basis. Our T-Mobile agreement will automatically renew in December 2011 for a one-year term subject to T-Mobile’s right to terminate on 30 days notice, and our AT&T agreement expires in January 2013," explains the S-1 document.
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