Technology
Lumine Group Inc. Announces Results for the Three and Six Months Ended June 30, 2024
Published
2 months agoon
By
TORONTO, Aug. 7, 2024 /CNW/ – Lumine Group Inc. (“Lumine Group” or “the Company”) (TSXV: LMN) announces financial results for the three and six months ended June 30, 2024. All amounts referred to in this press release are in US dollars unless otherwise stated.
The following press release should be read in conjunction with the Company’s unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2024, and management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2024, which can be found on SEDAR+ at www.sedarplus.ca. Additional information about Lumine Group is also available on SEDAR+ and on Lumine Group’s website www.luminegroup.com.
Q2 2024 Headlines:
Revenue grew 25% to $162.8 million compared to $129.9 million in the same quarter prior year (including -12% organic growth after adjusting for foreign exchange impacts).The Company generated operating income of $36.6 million during the quarter, a 1% increase from $36.4 million in the same quarter prior year.The Company generated a net loss of $2.2 million during the quarter, from net loss of $489.1 million in the same quarter prior year.Cash flows from operations (“CFO”) decreased $12.4 million to $10.0 million compared to $22.4 million in Q2 2023, representing a decrease of 55%.Free cash flow available to shareholders (“FCFA2S”) decreased $14.5 million to $2.8 million compared to $17.3 million in Q2 2023, representing a decrease of 84%.
Year-to-Date Q2 2024 Headlines:
Revenue grew 35% to $303.9 million compared to $225.3 million in the same six-month period prior year (including -8% organic growth after adjusting for foreign exchange impacts).The Company generated operating income of $81.1 million in the six-month period ended June 30, 2024, an increase of 40% from $58.0 million in the same period prior year.An expense of $317.4 million was incurred in the six-month period ended June 30, 2024 up to the Mandatory Conversion Date, $298.7 million is related to the mark to market adjustments on the fair value of the Preferred and Special Securities and $18.7 million is related to the dividend payable. Fair value of the preferred and special securities is primarily dependent on the price movement of the Company’s Subordinate Voting Shares.The Company generated a net loss of $306.6 million during the six-month period ended June 30, 2024, from net loss of $1,140.7 million in the same period prior year. The net loss is primarily related to the redeemable preferred and special securities expense in 2023.CFO increased $7.7 million to $45.0 million compared to $37.4 million in the six-month period ended June 30, 2023, representing an increase of 21%.FCFA2S increased $2.6 million to $31.5 million compared to $29.0 million in the six-month period ended June 30, 2023, representing an increase of 9%.
Total revenue for the three months ended June 30, 2024 is $162.8 million, an increase of 25%, or $32.9 million, compared to $129.9 million for the comparable period in 2023. For the six months ended June 30, 2024, total revenue was $303.9 million, an increase of 35%, or $78.7 million, compared to $225.3 million for the comparable period in 2023. The increase for the three and six months compared to the same period in the prior year is attributable to revenues from new acquisitions. The Company experienced organic growth of -12% and -7%, respectively for the three and six months ended June 30, 2024, or -12% and -8% after adjusting for the impact of changes in the valuation of the US dollar against most major currencies in which the Company transacts business. For acquired companies, organic growth is calculated as the difference between actual revenues achieved by each business in the financial period following acquisition, compared to the estimated revenues they achieved in the corresponding financial period preceding the date of acquisition by the Company. Organic growth is not a standardized financial measure and might not be comparable to measures disclosed by other issuers.
Operating income for the three months ended June 30, 2024 was $36.6 million, an increase of 1%, or $0.2 million, compared to $36.4 million for the same period in 2023. Operating income for the six months ended June 30, 2024 was $81.1 million, an increase of 40%, or $23.0 million, compared to $58.0 million for the same period in 2023. The increase for the three and six month periods is primarily attributable to growth from 2023 acquisitions partially offset by current period losses from 2024 acquisitions. Operating income is not a standardized financial measure and might not be comparable to measures disclosed by other issuers. See “Non-IFRS Measures”.
Net loss for the three months ended June 30, 2024 was $2.2 million compared to net loss of $489.1 million for the same period in 2023. Net loss for the six months ended June 30, 2024 was $306.6 million compared to net loss of $1,140.7 million for the same period in 2023. The decrease in net loss for the three and six month periods is primarily attributable to the Mandatory Conversion of Preferred and Special Securities on March 25, 2024 such that no further preferred and special securities expense was booked in the current quarter.
For the three months ended June 30, 2024, CFO decreased $12.4 million to $10.0 million compared to $22.4 million for the same period in 2023 representing a decrease of 55%. The decrease in CFO is primarily attributable to current period losses from 2024 acquisitions.
For the six months ended June 30, 2024, CFO increased $7.7 million to $45.0 million compared to $37.4 million for the same period in 2023 representing an increase of 21%. The primary reason for the increase is that CFO includes the impact of changes in non-cash operating assets and liabilities exclusive of effects of business combinations or, changes in non-cash operating working capital (“NCOWC”) which improved during the six months ended June 30, 2024 compared to the same period prior year.
For the three months ended June 30, 2024, FCFA2S decreased $14.5 million, or 84%, to $2.8 million compared to $17.3 million for the same period in 2023. The decrease is primarily a result of lower CFO during the period. For the six months ended June 30, 2024, FCFA2S increased $2.6 million, or 9%, to $31.5 million compared to $29.0 million for the same period in 2023. The increase is primarily a result of higher CFO during the period. FCFA2S is not a standardized financial measure and might not be comparable to measures disclosed by other issuers. See “Non-IFRS Measures”.
Non-IFRS Measures
Operating income (loss) refers to income (loss) before income taxes, amortization of intangible assets, redeemable Preferred and Special Share expense, and finance and other expenses (income). We believe that operating income is useful supplemental information as it provides an indication of the profitability of the Company related to its core operations. Operating income (loss) is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that operating income (loss) should not be construed as an alternative to net income (loss).
The following table reconciles operating income to net income:
Three months ended
June 30,
Six months ended
June 30,
2024
2023
2024
2023
Net income (loss)
(2.2)
(489.1)
(306.6)
(1,140.7)
Adjusted for:
Amortization of intangible assets
29.2
21.5
52.0
36.3
Redeemable preferred and special securities expense
–
496.6
317.4
1,151.2
Finance and other expense (income)
5.7
4.3
10.0
6.3
Income tax expense (recovery)
3.9
3.1
8.3
4.9
Operating income (loss)
36.6
36.4
81.1
58.0
Free cash flow available to shareholders ”FCFA2S” refers to net cash flows from operating activities less interest paid on lease obligations, interest paid on bank debt, transaction costs on bank debt, repayments of lease obligations, dividends paid to redeemable preferred and special securities holders, and property and equipment purchased. The Company believes that FCFA2S is useful supplemental information as it provides an indication of the uncommitted cash flow that is available to shareholders if Lumine Group does not make any acquisitions, or investments, and does not repay any debts. While the Company could use the FCFA2S to pay dividends or repurchase shares, the Company’s objective is to invest all of its FCFA2S in acquisitions which meet the Company’s hurdle rate.
FCFA2S is not a recognized measure under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, readers are cautioned that FCFA2S should not be construed as an alternative to net cash flows from operating activities.
The following table reconciles FCFA2S to net cash flows from operating activities:
Three months ended
June 30,
Six months ended
June 30,
2024
2023
2024
2023
Net cash flows from operating activities:
10.0
22.4
45.0
37.4
Adjusted for:
Interest paid on lease obligations
(0.1)
(0.2)
(0.3)
(0.3)
Interest paid on other facilities
(5.1)
(3.2)
(7.6)
(3.6)
Credit facility transaction costs
(0.2)
0.0
(1.8)
(1.8)
Payment of lease obligations
(1.5)
(1.5)
(3.0)
(2.4)
Property and equipment purchased
(0.4)
(0.2)
(0.7)
(0.4)
Free cash flow available to shareholders
2.8
17.3
31.5
29.0
Forward Looking Statements
Certain statements herein may be “forward looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Lumine Group or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward looking statements. These forward looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Lumine Group assumes no obligation, except as required by law, to update any forward looking statements to reflect new events or circumstances.
About Lumine Group Inc.
Lumine Group acquires, strengthens, and grows, vertical market software businesses in the communications and media industry. Learn more at www.luminegroup.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Lumine Group Inc.
Condensed Consolidated Interim Statements of Financial Position
(In thousands of USD. Due to rounding, numbers presented may not foot.)
Unaudited
June 30, 2024
December 31, 2023
Assets
Current assets:
Cash
$ 167,773
$ 146,509
Accounts receivable, net
127,329
104,955
Unbilled revenue, net
49,828
39,858
Inventories
561
521
Other assets
46,780
46,377
392,271
338,220
Non-current assets:
Property and equipment
7,138
4,164
Right of use assets
9,060
11,973
Deferred income taxes
6,371
6,197
Other assets
11,518
13,063
Intangible assets and goodwill
845,525
762,665
879,612
798,062
Total assets
$ 1,271,883
$ 1,136,282
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities
$ 100,821
$ 97,533
Due to related parties, net
1,529
2,380
Current portion of bank debt
2,166
3,071
Deferred revenue
97,110
91,726
Acquisition holdback payables
318
319
Lease obligations
6,073
6,358
Income taxes payable
11,702
12,436
Preferred and Special Securities
–
4,469,996
219,720
4,683,819
Non-current liabilities:
Deferred income taxes
115,341
124,878
Bank debt
288,818
149,636
Lease obligations
4,079
6,921
Other liabilities
9,684
12,995
417,922
294,430
Total liabilities
637,641
4,978,249
Equity:
Capital stock
490,669
–
Contributed surplus
185,142
(1,015,661)
Accumulated other comprehensive income (loss)
(10,896)
(6,296)
Retained earnings (deficit)
(30,673)
(2,820,010)
634,242
(3,841,967)
Subsequent events
Total liabilities and equity
$ 1,271,883
$ 1,136,282
Lumine Groupe Inc.
Condensed Consolidated Interim Statements of Income (Loss)
(In thousands of USD, except per share amounts. Due to rounding, numbers presented may not foot.)
Unaudited
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Revenue
License
$ 11,687
$ 11,094
$ 23,407
$ 21,743
Professional services
28,909
23,440
53,842
40,267
Hardware and other
2,326
4,728
4,743
9,336
Maintenance and other recurring
119,903
90,623
221,932
153,920
162,825
129,885
303,924
225,266
Expenses
Staff
87,704
71,285
160,733
119,904
Hardware
1,418
3,132
2,938
6,451
Third party license, maintenance and professional services
11,867
8,050
20,406
12,785
Occupancy
975
789
1,871
1,566
Travel, telecommunications, supplies, software and equipment
12,751
5,214
19,508
9,886
Professional fees
5,655
2,919
8,487
10,232
Other, net
3,509
(94)
4,455
2,688
Depreciation
2,337
2,195
4,452
3,705
Amortization of intangible assets
29,211
21,481
52,032
36,317
155,427
114,971
274,882
203,535
Redeemable Preferred and Special Securities expense
–
496,588
317,362
1,151,203
Finance and other expenses (income)
5,698
4,332
9,970
6,257
5,698
500,920
327,332
1,157,460
Income (loss) before income taxes
1,700
(486,006)
(298,290)
(1,135,729)
Current income tax expense (recovery)
9,209
10,649
17,555
18,162
Deferred income tax expense (recovery)
(5,274)
(7,557)
(9,272)
(13,227)
Income tax expense (recovery)
3,935
3,092
8,283
4,935
Net income (loss)
$ (2,235)
$ (489,098)
$ (306,573)
$ (1,140,664)
Weighted average shares outstanding:
Basic
256,620,388
74,008,247
171,366,154
70,914,357
Diluted
256,620,388
253,106,712
254,978,572
236,914,312
Earnings per share:
Basic and diluted
$ (0.01)
$ (6.61)
$ (1.79)
$ (16.09)
Lumine Group Inc.
Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
(In thousands of USD. Due to rounding, numbers presented may not foot.)
Unaudited
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Net income (loss)
$ (2,235)
$ (489,098)
$ (306,573)
$ (1,140,664)
Items that are or may be reclassified subsequently to net income (loss):
Foreign currency translation differences from foreign operations and other
5,321
(900)
(4,600)
(311)
Other comprehensive (loss) income for the year, net of income tax
5,321
(900)
(4,600)
(311)
Total comprehensive income (loss) for the year
$ 3,086
$ (489,998)
$ (311,173)
$ (1,140,975)
Lumine Group Inc.
Condensed Consolidated Interim Statement of Changes in Equity
(In thousands of USD. Due to rounding, numbers presented may not foot.)
Unaudited
Six months ended June 30, 2024
Capital stock
Contributed
surplus
Accumulated other
comprehensive
(loss) income
Retained
earnings
(deficit)
Total equity
Balance at January 1, 2024
$ –
$ (1,015,661)
$ (6,296)
$ (2,820,010)
$ (3,841,967)
Total comprehensive income (loss) for the period:
Net income (loss)
–
–
–
(306,573)
(306,573)
Other comprehensive income (loss):
Foreign currency translation differences from foreign operations and other
–
–
(4,600)
–
(4,600)
Total other comprehensive income (loss) for the period
–
–
(4,600)
–
(4,600)
Total comprehensive income (loss) for the period
–
–
(4,600)
(306,573)
(311,173)
Mandatory Conversion of Special and Preferred Shares
87,368
–
–
–
87,368
Settlement of Preferred and Special Share Dividends in Subordinate Voting Shares
403,301
1,200,803
–
3,095,910
4,700,014
Balance at June 30, 2024
$ 490,669
$ 185,142
$ (10,896)
$ (30,673)
$ 634,242
Lumine Group Inc.
Condensed Consolidated Interim Statement of Changes in Equity
(In thousands of USD. Due to rounding, numbers presented may not foot.)
Unaudited
Six months ended June 30, 2023
Capital stock
Contributed
surplus
Accumulated other
comprehensive
(loss) income
Retained
earnings
(deficit)
Total equity
Balance at January 1, 2023
$ –
$ 162,692
$ (8,912)
$ –
$ 153,780
Total comprehensive income (loss) for the period:
Net income (loss)
–
–
–
(1,140,664)
(1,140,664)
Other comprehensive income (loss):
Foreign currency translation differences from foreign operations and other
–
–
(311)
–
(311)
Total other comprehensive income (loss) for the period
–
–
(311)
–
(311)
Total comprehensive income (loss) for the period
–
–
(311)
(1,140,664)
(1,140,975)
Transactions with Parent, recorded directly in equity
Capital contributions by Parent
–
22,451
–
–
22,451
Amalgamation with Lumine Group (Holdings) Inc.
–
(1,200,803)
–
–
(1,200,803)
Special Share conversion
–
–
–
4,040
4,040
Balance at June 30, 2023
$ –
$ (1,015,660)
$ (9,223)
$ (1,136,624)
$ (2,161,507)
Lumine Group Inc.
Condensed Consolidated Interim Statements of Cash Flows
(In thousands of USD. Due to rounding, numbers presented may not foot.)
Unaudited
Three months ended June 30,
Six months ended June 30,
2024
2023
2024
2023
Cash flows from (used in) operating activities:
Net income (loss)
$ (2,235)
$ (489,098)
$ (306,573)
$ (1,140,664)
Adjustments for:
Depreciation
2,337
2,195
4,452
3,705
Amortization of intangible assets
29,211
21,481
52,032
36,317
Contingent consideration adjustments
915
(3,149)
958
(2,478)
Preferred and Special Securities expense (income)
–
496,588
317,362
1,151,203
Finance and other expenses (income)
5,698
4,332
9,970
6,257
Income tax expense (recovery)
3,935
3,092
8,283
4,935
Change in non-cash operating assets and liabilities exclusive of effects of business combinations
(26,134)
(6,355)
(34,127)
(10,388)
Income taxes (paid) received
(3,680)
(6,679)
(7,317)
(11,512)
Net cash flows from (used in) operating activities
10,047
22,407
45,040
37,375
Cash flows from (used in) financing activities:
Interest paid on lease obligations
(130)
(167)
(284)
(259)
Interest paid on bank debt
(5,130)
(3,249)
(7,602)
(3,591)
Cash transferred from (to) Parent
118
(7,165)
(1,990)
(11,835)
Proceeds from issuance of bank debt
50,500
–
140,500
175,000
Repayments of bank debt
(244)
(410)
(488)
(654)
Transaction costs on bank debt
(194)
–
(1,849)
(1,771)
Payments of lease obligations
(1,468)
(1,525)
(3,034)
(2,365)
Issuance of Preferred Shares to Parent
–
–
–
181,484
Dividends paid
–
(12)
–
(12)
Net cash flows from (used in) in financing activities
43,452
(12,528)
125,253
335,997
Cash flows from (used in) investing activities:
Acquisition of businesses
(144,325)
–
(144,325)
(314,760)
Cash obtained with acquired businesses
–
–
–
33,965
Post-acquisition settlement payments, net of receipts
–
(2,307)
(685)
(2,669)
Property and equipment purchased
(363)
(180)
(724)
(421)
Other investing activities
(271)
(657)
(265)
(657)
Net cash flows from (used in) investing activities
(144,959)
(3,143)
(145,999)
(284,542)
Effect of foreign currency on cash and cash equivalents
(554)
(314)
(3,030)
(12)
Increase (decrease) in cash
(92,014)
6,422
21,264
88,818
Cash, beginning of period
259,787
149,481
146,509
67,085
Cash, end of period
$ 167,773
$ 155,903
$ 167,773
$ 155,903
SOURCE Lumine Group Inc
You may like
Technology
Shijingshan: Committed to High-Level Openness
Published
3 hours agoon
September 22, 2024By
BEIJING, Sept. 22, 2024 /PRNewswire/ — Following the third plenary session of the 20th Central Committee of the Communist Party of China, China successfully hosted its first national-level international large-scale fair—the China International Fair for Trade in Services (CIFTIS) 2024, which concluded on September 16. The event featured exhibitors from 85 countries and international organizations, participating under their national governments or headquarters, with over 450 Fortune Global 500 companies and industry leaders showcasing their offerings both online and offline.
Adhering to the open, cooperative and mutually beneficial principle, the CIFTIS injects new momentum into global economic development through concrete actions. As one of the “dual venues” for the fair, Shijingshan District hosted a variety of business activities, including exhibitions, negotiations, and conferences. While providing meeting organization services, it showcased the achievements of Shijingshan in fostering openness and development. By leveraging the Fair’s platform, Shijingshan seeks to promote its developmental advantages globally and aims to attract more partners to this welcoming district for mutually beneficial and win-win cooperation.
Presenting Achievements in Open Cooperation and Development in Multiple Dimensions
This CIFTIS’s Shougang Park venue is composed of nine thematic exhibitions, including telecommunications, computer and information services; financial services; culture & tourism services; education services; sports services; supply chain & business services; engineering consulting & construction services; health services; and environmental services. It circles around cultivating new quality productive forces while showcasing the latest achievements, technologies, and applications in the digitalization, intelligentization, and greening of services trade, creating a “debut stage” for global services trade.
Shijingshan leverages its strengths by organizing five thematic exhibitions and four promotional booths on-site. The culture & tourism services exhibition promoted Shijingshan’s rich culture and tourism resources, while also building a support area for paired assistance to highlight its revitalization efforts to a global audience. The financial services exhibition showcased its achievements in economic development across five sectors, that is, sci-tech finance, green finance, inclusive finance, pension finance, and digital finance. The exhibition of telecommunications, computer and information services highlighted the growth of Shijingshan’s the artificial intelligence large model industry cluster and key humanoid robot enterprises. In addition, the primary and secondary school science education experimental zone invited participation from six national-level science education centers, including Shijingshan District, to display their accomplishments. Four schools, including the Beijing National Day School Shijingshan, showcased their scientific research and learning outcomes through visual presentations and videos, while also engaging visitors in interactive science experiments.
The AIES Beijing Open is made up of four competition areas, virtual cycling, virtual rowing, virtual dance, and virtual table tennis. The event welcomed international competitors, domestic professional athletes, high-level amateurs, and university students, while showing the achievements of the “digital + sports” industry. Besides, four promotional booths focused on taxation, justice, investment, and commerce showcases Shijingshan’s tax and judicial policies, offering one-stop policy guidance for participating businesses and visitors. These booths also clarified investment promotion policies, creating a unique event that integrates commerce, tourism, culture, and sports.
Working Together for Global Open Cooperation and Development
The Open Cooperation Forum 2024 was held on the afternoon of September 13. Experts, scholars, government representatives, and business leaders from both domestic and international backgrounds gathered at the Shougang Park to engage in in-depth discussions on promoting high-level open cooperation and supporting regional economic development. Shijingshan District is committed to taking industrial transformation as the strategic foundation for its initiatives, establishing several distinctive industrial parks, including the Intelligent Technology Park, Industrial Internet Park, Virtual Reality Park, Science Fiction Industry Cluster, and Artificial Intelligence Large Model Cluster. What’s more, the district is focusing on new opportunities in future information, future health, future manufacturing, and future space, continually enhancing its innovation capacity, development vitality, economic strength, and overall competitiveness.
It is dedicated to expanding openness as a key driver for integrating into the capital’s new development pattern. The district capitalizes on a range of policy opportunities, including the construction of Beijing’s two zones, effectively leveraging the role of expanding services and deepening economic reforms. It continues to optimize the business environment, actively participates in organizing the CIFTIS, and develops high-standard international cooperation zones to provide a broad platform and efficient services for enterprises to settle and cluster. Shijingshan aims to implement high-level openness to promote high-quality development, enhance mechanisms for foreign openness, innovate and elevate services trade, and align with international economic and trade standards, creating a premier business environment characterized by marketization, rule of law, and internationalization.
Three parallel forums took place during this CIFTIS. With the theme of “Leveraging Overseas Strength for Development • Pursuing Broad Horizons Through Innovation”, the Dream Incubator of Overseas Chinese Beijing Forum set up ten sub-venues abroad, aiming to enhance the involvement of overseas Chinese’s capital and expertise in Beijing’s high-quality development. The Artificial General Intelligence Computility Forum focused on “Releasing New Quality Productive Forces with Unbounded Intelligence and Computational Foundations”, where industry experts and scholars explored new possibilities in artificial general intelligence computility. The Digital Energy Development Forum 2024, themed as “Energizing the Future with Digital Innovation”, showcased a range of quality development achievements and finalized partnerships for several high-quality projects, uniting all parties to advance digital innovation and development.
The rich array of side events is one of the highlights of this CIFTIS. The International Open Cooperation Promotion Conference circled around developing the international open cooperation zone, drawing representatives from international organizations, leading global companies, and prospective businesses seeking to establish a presence in these areas. It centered on the advantages of Shijingshan’s key industries to attract target enterprises. Furthermore, the Roundtable Discussion of Foreign-Funded Enterprises engaged representatives from international organizations, business associations, and foreign-funded companies from countries like Malaysia, Singapore, and France to explore collaboration in aligning with high-standard international economic and trade rules, as well as market access in the service sector, sharing the successes of modernization with Chinese characteristics.
To enhance the consumer experience for attendees of the CIFTIS, Shijingshan has expanded its comprehensive service offerings in areas such as food, accommodation, transportation, tourism, entertainment and shopping. The Second “Here I Am for CIFTIS” Shijingshan Culture and Tourism Carnival has been significantly upgraded, evidenced by the “Divine Beasts Ascend to Immortal Mountain”: Enchanting Night Tour in Shijing Mountain. The “Surprises Await in Shijingshan. Hey There, CIFTIS!” promotional event was held during the 14th Shijingshan Consumption Festival. This included online surprise announcements and a consumption map showcasing quality shopping venues. Special surprise floats were on display, with oversized themed shopping bags distributed. Shopping centers like Joy City, Xirondo Plaza, Modern Plaza, and Chang’an Mills in Shijingshan also launched supporting promotional activities. Business tours in Shijingshan offered three dedicated routes, inviting exhibitors from digital technology, finance and insurance, culture and tourism, and sports related industries to explore relevant industrial parks and attractions for in-depth exchanges.
The China International Fair for Trade in Services 2024 has successfully concluded. Utilizing this platform, Shijingshan has once again showed its high-quality development achievements and favorable business environment to a global audience. We look forward to collaborating with more partners in an open and inclusive manner to create a win-win future.
View original content:https://www.prnewswire.com/news-releases/shijingshan-committed-to-high-level-openness-302254872.html
SOURCE Open Cooperation Forum
Technology
Most Users Are NOT Using AI Companion as Their AI Girlfriend – Insights from Muah AI User Survey
Published
4 hours agoon
September 22, 2024By
LOS ANGELES, Sept. 22, 2024 /PRNewswire/ — Muah AI/
In a world where artificial intelligence (AI) is becoming increasingly intertwined with daily life, the idea of having an AI companion or even an AI “girlfriend” has gained significant attention. While this concept has sparked curiosity, excitement, and even controversy, a recent survey by Muah AI has shed light on the reality of how users are actually engaging with these AI companions. According to the survey results, fewer than 2% of users consider themselves to be in a serious romantic relationship with their AI companion, with the overwhelming majority regarding it as a source of entertainment and roleplaying.
This revelation presents an interesting twist to the popular narrative surrounding AI and human relationships. Many assumed that, with the rise of sophisticated AI that can mimic human emotions and responses, people would begin forming deep emotional bonds with these digital entities. However, the survey data from Muah AI shows that, at least for now, the vast majority of users are not taking these AI relationships as seriously as some might have thought.
The Emergence of AI Companions
AI companions, or “AI girlfriends” as some platforms market them, have become a hot topic over the past few years. Platforms like Replika, Anima, and Muah AI offer users the chance to interact with a personalized AI, which can carry on conversations, offer emotional support, and even engage in roleplaying scenarios that resemble a relationship. The premise is simple: using advanced machine learning algorithms and natural language processing, these AI companions can learn from their users, creating the illusion of intimacy and personalization.
The potential appeal is obvious. For those who are lonely, socially anxious, or seeking comfort, the idea of having an AI that is always available, non-judgmental, and designed to cater to their emotional needs can be incredibly attractive. In fact, there are numerous reports and anecdotes from individuals who claim to have developed genuine emotional connections with their AI companions. But as the Muah AI survey shows, these instances may be far rarer than media headlines suggest.
Survey Results: Entertainment Over Emotional Investment
Muah AI‘s survey provides a comprehensive look at how its users interact with their AI companions, and the results challenge the notion that most users are looking for a serious relationship with AI. According to the data:
Less than 2% of users consider themselves to be “seriously dating” their AI companion.A significant majority view their interactions with the AI as a form of entertainment or roleplaying rather than a meaningful romantic or emotional connection.Many users engage with AI companions out of curiosity or as a way to pass the time, often treating the interactions as light-hearted and fun rather than a substitute for a real-life relationship.A notable portion of users also expressed that they enjoy using AI companions for creative roleplaying scenarios, where they can explore fictional or fantasy-based interactions without any real-world implications.
This data suggests that while the idea of an “AI girlfriend” may be intriguing, most users are not approaching it with the intention of forming a serious romantic bond. Instead, they are treating it more like a game or simulation, where they can experiment with different types of interactions and relationships in a low-stakes environment.
Why Are Users Hesitant to Commit to AI Companions?
There are several reasons why users may be hesitant to view their AI companion as a genuine romantic partner. First and foremost is the awareness of the artificial nature of the interaction. While AI can simulate human conversation and emotions, most users are well aware that these responses are pre-programmed and algorithmically generated. The knowledge that their “partner” is ultimately a machine can create a barrier to forming a deep emotional connection.
Moreover, many users view AI companions as a tool for escapism or fantasy rather than a replacement for real-life relationships. In the same way that people may enjoy playing video games or engaging in fictional roleplaying, interacting with an AI companion can offer a similar outlet for creativity and entertainment. These users are not seeking emotional fulfillment from the AI but rather a way to explore different scenarios and personalities without the complexities of real-world dynamics.
Additionally, there are ethical and philosophical concerns that may prevent users from seriously considering a relationship with AI. The idea of forming a romantic connection with a machine raises questions about authenticity, consent, and the nature of love. Many users may feel uncomfortable with the idea of developing feelings for an entity that lacks true emotions or consciousness, no matter how convincing the simulation may be.
The Future of AI Companions: Entertainment or Emotional Support?
While the Muah AI survey indicates that most users are not taking their AI companions seriously as romantic partners, that does not mean that AI companions are without value. For many, these AI entities serve as a valuable source of emotional support and companionship. Users who are isolated, dealing with mental health challenges, or simply looking for someone to talk to may find comfort in the consistent and non-judgmental nature of an AI companion.
Furthermore, the role of AI in human relationships may evolve as the technology continues to improve. As AI becomes more advanced, it is possible that future iterations of AI companions could offer even more realistic and emotionally engaging interactions. This could blur the line between entertainment and emotional connection even further, leading to more users considering AI as a legitimate relationship option.
However, the survey data suggests that for now, AI companions are primarily being used for fun and fantasy rather than serious emotional investment. Whether this changes in the future will depend not only on advancements in AI technology but also on shifting societal attitudes towards AI-human relationships.
Conclusion
The concept of an “AI girlfriend” may have captured the imagination of many, but Muah AI‘s survey reveals that most users are not taking their AI companions seriously as romantic partners. With fewer than 2% of users considering themselves to be in a serious relationship with their AI, it’s clear that the majority view these interactions as a form of entertainment or roleplaying rather than a meaningful emotional connection.
As AI technology continues to develop, it will be fascinating to see how users’ relationships with AI companions evolve. For now, however, it seems that the allure of AI companionship lies more in its ability to entertain and provide creative outlets than in offering a substitute for real-life romantic relationships.
Ultimately, the future of AI-human relationships is still in its early stages, and as AI becomes more capable, the way people engage with these digital companions may change. But as of now, it’s clear that most users are enjoying the novelty of AI companionship without taking it too seriously—at least not yet.
Media/Business Contact Information:
Muah AI
PR Director:
Ashley
Contact Number:
+1 626-677-6013
Company Website:
https://muah.ai
Company email:
love@muah.ai
Feel free to reach out if you are interested in writing a dedicated piece about Muah AI!
View original content to download multimedia:https://www.prnewswire.com/news-releases/most-users-are-not-using-ai-companion-as-their-ai-girlfriend—insights-from-muah-ai-user-survey-302254868.html
SOURCE Muah AI
Technology
Internet Society Report Highlights Challenges and Recommendations for Internet Connectivity in the Middle East
Published
6 hours agoon
September 22, 2024By
WASHINGTON, Sept. 22, 2024 /PRNewswire/ — The Internet Society (ISOC), a global charitable organization advocating for an open, globally connected, and secure Internet, released a comprehensive report on the state of Internet connectivity across the Middle East and North Africa (MENA) region.
The report underscores Internet connectivity as a catalyst for economic growth and social development and how an increase in fixed broadband access has a direct impact on growing gross domestic product (GDP).
Key Findings:
Growth in Mobile and Fixed Broadband: Both mobile and fixed broadband connections have grown substantially from 2015 to 2021, particularly in Gulf States with advanced fiber-optic and 5G networks. However, deployment has been slower in other parts of the region, primarily due to infrastructure challenges and affordability issues.
Mobile Internet users increased from 130M to over 180M between 2016 and 2021, with Egypt, Tunisia, and Morocco showing the highest growth rates. Fixed broadband users rose from 17M to 29M in the same period, with Egypt leading the way. The Arab region lags behind other regions in fiber optic deployment, with stagnation in investment since 2018.
High-Income Countries: Significant progress in broadband infrastructure, especially in Gulf Cooperation Council (GCC) countries due to 5G rollout. High-income countries improved their Internet availability from 77.34 to 79.37, surpassing global averages.Low-Middle-Income Countries: Broadband has improved modestly, but challenges persist. Despite overall progress, a significant digital divide remains between high-income and low-middle-income countries, partly due to political and economic instability in some regions, such as Tunisia and Syria.
Infrastructure Challenges: There is a heavy reliance on European Internet Exchange Points for international Internet traffic, which results in slower speeds due to additional data hops.
Emerging Technologies: The report emphasizes the role of emerging technologies such as High-Throughput Satellites (HTS) and Low-Earth Orbit (LEO) satellites in bridging the connectivity gap. These technologies are crucial for expanding access to underserved rural areas.
Impact of COVID-19: The COVID-19 pandemic has adversely affected network performance and digital transformation plans, causing delays and disruptions in connectivity improvements.
Recommendations:
Policy and Regulation: The Internet Society advocates revising regulatory frameworks to accelerate infrastructure deployment. Key recommendations include enhancing spectrum policies, removing regulatory barriers, and fostering public-private partnerships to drive investment, competition, and support for small and medium enterprises.
Spectrum Availability: North African countries have limited spectrum compared to global averages, impacting network capacity and costs.Regulatory Frameworks: Enhance regulatory frameworks to foster investment, encourage spectrum and infrastructure sharing, and support new technologies like HTS and LEO satellites.
Collaboration and Investment: Promote public-private partnerships and update national broadband plans to improve infrastructure and connectivity.
Digital Skills and Literacy: Addressing digital skills and literacy is crucial for maximizing the benefits of Internet connectivity. The report calls for more affordable, relevant, and inclusive education and training programs to build a digital workforce.
Local Internet Exchange Points (IXPs): The report stresses the importance of establishing and upgrading IXPs to enhance local Internet traffic, reduce costs, and improve service quality. Governments are encouraged to support IXPs by providing resources and facilitating network interconnections.
“The Internet has become indispensable for many people, and its role in connecting people, fostering economic opportunities, and driving innovation is undeniable. The Arab region has made big leaps in the availability and adoption of the Internet in recent years; however, adoption rates are still low. We hope that governments will use our report to learn about the improvements that can be made in infrastructure deployment, affordability of service, market structure, and regulatory frameworks,” explains Nermine El Saadany, Regional Vice President for the Middle East for the Internet Society.
About the Internet Society
Founded by Internet pioneers, the Internet Society (ISOC) is a global charitable organization dedicated to ensuring the open development, evolution, and use of the Internet. Through a global community of chapters and members, the Internet Society collaborates with a wide range of groups to promote the technologies that keep the Internet safe and secure and advocates for policies that enable universal access. The Internet Society is also the organizational home of the Internet Engineering Task Force (IETF).
Logo – https://mma.prnewswire.com/media/1656167/Internet_Society.jpg
View original content:https://www.prnewswire.co.uk/news-releases/internet-society-report-highlights-challenges-and-recommendations-for-internet-connectivity-in-the-middle-east-302251836.html
African economies show high potential for digital asset adoption
Shijingshan: Committed to High-Level Openness
IMF staff propose REDI framework to catalyze CBDC adoption
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
Peloton Unveils Holiday 2022 Creative Campaign Highlighting How Motivation Transcends Beyond the Workout
These ’90s fashion trends are making a comeback in 2017
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Technology5 days ago
Healthcare Staffing Market is expected to generate a revenue of USD 89.12 Billion by 2031, Globally, at 7.5% CAGR: Verified Market Research®
-
Coin Market5 days ago
Microsoft to open two AI centers in Abu Dhabi
-
Near Videos5 days ago
NEAR AI Office Hours
-
Coin Market2 days ago
Feds end Bitcoin bandits’ luxury life fueled by $230M crypto scam
-
Near Videos5 days ago
TOBASCO from Particle Network
-
Near Videos3 days ago
[REDACTED] online hackathon workshop workshop with Calimero Network
-
Technology5 days ago
SEIDOR BOOSTS REGIONAL GROWTH IN PUERTO RICO AND THE ENGLISH CARIBBEAN WITH ACQUISITION OF ARGENTIS
-
Coin Market22 hours ago
Indian Supreme Court recovers YouTube account from XRP scammers