Ann: Preliminary 1H19 Results, page-10

Catapult has had early adopteradvantage but is now experiencing real competition in “elite”markets, from many, including Kinexion & Second Spectrum [NBA], Zebra[NFL], Statsports [globally in soccer & rugby], SAP Sports,WIMU, K Sports, SMT etc. Competition is also coming from Hudl, SPT Statsports, etcin the prosumer & non-elite team markets and from HUDL, Chyronhego & othersin the video / graphics analytics markets. In addition, Microsoft, IBM, UnderArmour, Adidas, Nike, Garmin etc are creating new ecosystems to captureelite & everyday athlete data.  

In 2018 Catapult lost to competitors [or did not win] the larger Association wide dealswith US Soccer [Men’s & Women’s], The Chinese & Brazilian FA’s, IrishRugby, Argentina, etc and their signing of the CAF [for PlayR], Welsh Rugby,UKRL & the recent FFF upgrade are interesting by comparison. The A$100m+ ofshareholder funds spent to capture global markets has hadlimited success but with increasing competition, margin pressure,client churn and quality and reliability of data being essential to win new business,things may not get any easier from here, especially if competitors start winning some benchmarkclients in Catapult’s home & established markets.

H1 shows little in way ofgaining any specific market dominance and if potential for profitability extendspast 2020/1 it will be a concern. The AGM prediction of substantial revenuesfrom Prosumer markets seem lost with slow sales and the CEO’s H1 note cuttingback marketing budgets. In 2017 & 2018 Catapult posted incremental revenues but also posted their largest losses [$A13m & $A17m ]. Increasing client numbers 17% [1800-2100] without many major signings announced, may indicate many lower end sales - and it is in the "elite" markets where the better margin revenues lie.

Shareholders will hope the audited 2019HY / FY results improve a potential for eventual profitability ratherthan a potential need for further capital.