Quarterly Activities Report & Appendix 4C – Period ending 30 September 2024

Linius Technologies Limited (ASX: LNU) (Company or Linius) is pleased to provide its Quarterly Activities Report and Appendix 4C for the quarter ending 30 September 2024, along with the following financial and operational summary.

• Expansion of Linius Media Solutions (LMS) portfolio with availability of new product, Captivate, a personalized, socially-centred viewer engagement solution for broadcasters and sports federations.
  • Captivate has created opportunities in the much larger broadcast market and is driving bigger deal sizes with sports federations and rights holders. It is expected to drive a 3-5x increase in revenue in FY25 and pull through >50% increase in revenue from Whizzard and Whizzard Highlights.
  • See a demo of Captivate here: https://vimeo.com/linius/captivate-demo.
  • Based on learnings from existing clients, partners, and existing deployments of Whizzard and other fan engagement solutions, Captivate focuses on the biggest issue in the broadcast and sports market today – lost engagement to social apps like YouTube, TikTok, and Instagram.
  • It combines the best of these social apps with the high quality sport, news, and entertainment content from broadcasters/federations, with an unmatched level of personalization.
  • It’s a natural extension of LMS, taking our solutions directly to the point of monetization – viewer engagement.
  • It includes:
    • Instant presentation of video content, simple navigation and search
    • Likes, views, sharing, and following
    • User generated content
    • Carousels of the latest, trending, popular and promoted content
    • Dynamic assembly of hyper-personalized content – the system learns from my interactions and dynamically creates content to my specific preferences
  • Captivate was launched in September at the IBC trade show and is already generating significant interest and opportunities from global broadcasters, sports federations, and partners with multiple opportunities and proposals in development. Linius anticipates multiple deployments of Captivate to be live with end users by early CY25.
• Signed a global distribution agreement with Cricket Australia (CA) that enables Linius to distribute the rights to the entire CA video archive together with Linius Captivate, Whizzard, and Whizzard Highlights. The combination of product + content provides a turn-key package that we are actively selling to broadcasters globally and will accelerate adoption of Captivate and Whizzard. This package increases potential deal sizes by over 100%.
• Forged additional industry partnerships to scale revenue growth.
  • Partnerships will be a significant engine for growth and are forecasted to represent over 50% of our revenue in FY25.
  • Signed a strategic partnership with Prime Focus Technologies (PFT).
    • Prime Focus is the world’s largest independent integrated media services company with customers including Walt Disney-owned Star TV, Channel 4, ITV, Warner Bros. Discovery, Paramount, Disney+ Hotstar, BCCI, Amazon, MGM Studios and more. Linius and PFT will integrate LMS with PFT’s CLEAR and CLEAR AI solutions. PFT will resell Whizzard, Whizzard Highlights, Captivate, and the Linius Video Services platform and APIs.
    • Joint solutions include AI-powered automated highlights and personalised content curation for sports and broadcast customers, which will be marketed and sold to PFT’s existing installed base and new business opportunities.
    • Several opportunities with leading global sports federations are already in development with first outcomes expected in Q2 FY25.
  • Signed a strategic partnership agreement with Fujitsu
    • Headquartered in Japan, Fujitsu is a multi-national information and communications technology equipment and services corporation and the top digital services company in Japan by market share.
    • Partnership delivers a suite of solutions combining Linius’ video platform with Fujitsu’s deep industry expertise and global reach and Fujitsu Kozuchi for Vision, Fujitsu’s AI service.
    • Joint solutions are expected to be particularly impactful in industries including security/surveillance, airport and transportation operations, border services, police/fire services operations, site/asset inspections and maintenance, retail analysis, consumer behaviour, and more.
    • These new markets have the potential to be larger than the sports and broadcast markets.
  • Progressed existing partnerships with Magnifi, StatsPerform, Genius, and Avid, with multiple opportunities currently in development with each partner. These well-advanced partnerships are expected to increase revenue by more than 25% in the next 2 quarters.
• Supported customers in their usage of Linius Media Solutions for new seasons.
  • Rollouts for American football for Lone Star Conference, soccer for Peach Belt Conference, and ice hockey via customer HTP for various federations and schools including North American Hockey League, USA Hockey, and Shattuck St Marys.
  • HTP has rolled out Whizzard to existing clients, in addition to their existing Personalized Channel fan engagement solution.
  • Racing.com now actively utilizing Whizzard, with their former bespoke editorial/curation solution now decommissioned.
• In August, the Company implemented a restructure, reducing annualized costs by nearly $1million. With the launch of Captivate, incremental ongoing development to existing products, and a streamlined deployment process, significant cost reductions in engineering were achieved, in addition to other cost reductions across the operation.
• Linius participated in the IBC tradeshow in September, launching new product Captivate with partner Magnifi. The show resulted in over 100 leads and dozens of highly qualified opportunities which are now under development, both independently and with Magnifi.
• In October, Linius attended the annual Sportel conference driving multiple deals further in the sales cycle and adding several new qualified opportunities to the pipeline.

Linius CEO James Brennan commented, “While Q1 FY25 showed lower financial results than recent quarters due to invoicing seasonality and some delayed payments, the strength and quality of our deal pipeline will support our growth plans for FY25. In Q1, we completed several objectives that are important to our revenue growth this year. The first is the launch of Captivate, our new personalized and socially-oriented viewer engagement solution. Captivate has truly been game-changing in our conversations with broadcasters and sports federations around the world and it’s clear that Captivate is meeting the market both in terms of value and timing. Traditional broadcast mediums are experiencing decline in viewership and revenue to social apps like YouTube, TikTok and Instagram. Captivate puts the control back in the hands of the rights holder, combining their premium content with the engagement features viewers are proven to favour, on their websites/apps. Captivate increases stream volumes by 20% or more, drives significant monetization opportunities, and brings the relationship with the users back to the rights holder. The response from our partners has been amazing, with all fully engaged in taking Captivate to market. Captivate is expected to generate a 3-5x increase in revenue during FY25 and pull through >50% growth in other Linius products.”

“Secondly, we forged two more partnerships with world class technology partners, Prime Focus Technologies and Fujitsu. These are large, global leaders in their respective markets who recognise the value that Linius solutions brings to their existing customers and the differentiation that we add to their solution portfolios.

These are in addition to our existing partnerships with Magnifi, StatsPerform, Genius, and Avid, all of which have generated multiple opportunities currently in development. These partnerships are a strong validation of Linius solutions and strategy and are expected to contribute >50% of revenue in FY25.”

“With our complete Linius Media Solutions portfolio, strong reference customers and case studies, and strategic partnerships for scale, we are confident in our growth in FY25 towards profitability.”

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