migme Limited: Quarterly Operations Report
(firmenpresse) - migme Limited: Quarterly Operations Report
20 July 2016
Highlights: June 2016 Quarter (2Q2016)
· Monthly Active Users (MAU) exceeded 43 million at quarter end, up 10.3%
· Artist and entertainment partners increased over 12% to approximately 2,900 on previous quarter
· Quarter-on-quarter cash receipts up 7% to $7.6 million whilst cash outflows fell 10% to $5.1m
· Launch of the Funkey to allow for the integration of other applications and games in the core experience.
· Instagram of China Meitu becomes a substantial shareholder with an additional US$1.5m investment
Key Metrics
METRIC 30 JUN 30 SEP 31 DEC 31 MAR 30 JUN
2015 2015 2015 2016 2016
Monthly Active >19 >24 >32 >39 >43
Users*
(million)
Artists/Verified >400 >490 >620 >2,600 2,900
Users
Cash Receipts from 2,201 3,717 5,393 7,129 7,598
Operations
($,000)
Net Operating Cash 4,208 4,400 5,210 5,640 5,085
Outflows
($000)
Net Other Cash 6,497 9,642 3,243 6,150 852
Inflows
($000)
Cash on Hand ($m) 5.4 10.8 8.7 8.9 4.7
* Consistent with industry practice, Monthly Active Users (MAU) are independently provided by Google Analytics and are a consolidation of the Companys traffic from web, mobile web, feature phones, Android and iPhone client usage for migme, LoveByte, alivenotdead, Sold Shopdeca and Hipwee.
Overview
migme is pleased to announce its second quarter 2016 results. They reflect the pursuit of the Company broadening their objectives to deepen engagement and deliver operating margin, whilst growing both the headline monthly active users and revenues.
During the quarter, MAU figures rose 10.3% to more than 43 million. Over the last 12 months, MAU numbers have more than doubled and cash receipts have risen more than threefold. The quarterly results also show that cash receipts have increased, rising 7% to $7.6 million, with operating cash outflows reducing by 10% to $5.1 million. The reduction in operating cash outflows will continue to be a focus as the Company looks to improve its operating margins and the Company intends to be in a position to be able operate on a cash flow neutral basis in early 2017.
Audience and Engagement
Over the past quarter, the Company has broadened its objectives from absolute MAU and cash receipt growth to engagement and quality of cash receipts (see chart 1 below). Of note, the company has made progress with the acquisition of Hipwee, and with content creators, working with full format productions, and community events. migme has also made progress with handset preinstalls, however some programs have slowed in favour of pursuing quality of execution versus absolute growth numbers.
http://www.irw-press.at/prcom/images/messages/2016/36361/16 07 20 Quarterly Report_PRCom.001.png
Chart 1: MAU and Content Partner results
Overall, the Company believes the time spent on the quality of engagement and monetisation is important, prior to the return on focus on headline growth later in the year. migme has established numerous cases on a weekly basis where there is comparable or better engagement in migme than on alternative platforms such as Facebook (e.g. see example 1 below). The attention is now shifted to the quality and repeatability of the cases.
http://www.irw-press.at/prcom/images/messages/2016/36361/16 07 20 Quarterly Report_PRCom.002.png
Example 1: Organic Internal Artist Engagement drawing users from other platforms
The Company also continues to explore mainstream broadcast engagement during the quarter (e.g. see example 2 below). Work commenced with the Endemol network and their television program So You Think You Can Dance in India. In the initial three weeks, the Company witnessed growing week-to-week user engagement to a level that demonstrates that migme, as a social media channel for conversation about the shows contestants, has been more effective compared to Facebook, where the same post on migme yielded multiple times more engagement.
http://www.irw-press.at/prcom/images/messages/2016/36361/16 07 20 Quarterly Report_PRCom.003.jpeg
Example 2. Mainstream broadcast engagement - Mega Model 3 and So You Think You Can Dance
Building audience reach was also evident in migmes earlier partnership with the Mega Model 3 franchise in Nepal, where broad awareness of migme was gained via TV reach (e.g. see also example 2 above). The knowledge gained from Mega Model 3 and So You Think You Can Dance will significantly enhance the Companys approach in this broadcast medium for future projects. The Endemol network in India provides access to further mainsteam programs including Big Boss, Master Chef and The Voice.
User events drive engagement where the size and scale is most evident in offline events as users meet up around the world in groups of up to a thousand at a time with several dozen a week self- organised by users themselves (e.g. see example 3 below). Community formation across the group is now manifesting itself physically with offline events in Indonesia and India, with some events hosting over 1,000 attendees.
Users are also organising their own events and we are seeing activity not just in our main focus countries (e.g. India, Indonesia and the Philippines), but the Company is seeing events hosted in places such as Mozambique and other parts of Africa as well.
http://www.irw-press.at/prcom/images/messages/2016/36361/16 07 20 Quarterly Report_PRCom.004.png
Example 3: migme offline, big events and smaller meet-ups
Product, Engineering and Operations
Over the quarter, the Company made progress on three major initiatives:
1. Applications (apps.) and games;
2. Integrating the various companies in the group; and
3. Updating the platform and platform operations.
The company made progress during the period by trialing an application programming interface around its Fun Key (see Example 4 below). Third party applications can work with migmes Android application through Deep Linking and deliver to a common user a composite experience. Integrated into the Fun Key are applications including Meitus Beauty Plus, Mybrana, and many others.
The value of this approach is to allow migme to compete with other platforms with functionality that is gained through working with other developers rather than having to build it all. Many companies in this industry have grown their user base and driven engagement through applications and games (e.g. Facebook, WeChat, Line, and many others).
Outside of the East Asian ecosystem, Facebook is known to have grown their platform with games. However when this attention to games changed, inevitably this negatively affected many companies such as Zynga and others. By taking this approach, migme is able to provide application and game developers with an alternative platform to Facebook, that delivers an independent viral loop.
http://www.irw-press.at/prcom/images/messages/2016/36361/16 07 20 Quarterly Report_PRCom.005.png
Example 4. The Funkey
In June, the company trialed an engagement campaign with Meitus MakeUpPlus, including a launch of a new feature by a Korean make-up artist (see example 5 below). The campaign, called #ponyup yielded encouraging early results and the Company is looking to take the lessons from the trial for product improvements in Q3, with a view of scaling up our level of engagement.
http://www.irw-press.at/prcom/images/messages/2016/36361/16 07 20 Quarterly Report_PRCom.006.png
Example 5. First Meitu campaign on migme
During the quarter, the Company continued to integrate the alivenotdead business onto the main platform and commenced the integration of ecommerce.
The launch of the migShop store establishes the central framework for migmes expansion into social ecommerce (see example 6 below). The store, combined with the artist and key influencer engagement programs, lends itself to the successful delivery of social ecommerce services as a means to drive engagement and sales. migmes focus on social ecommerce will follow similar successful Chinese models, namely Mogujie and Meilishuo, which reported combined revenues of US$3 billion last year.
http://www.irw-press.at/prcom/images/messages/2016/36361/16 07 20 Quarterly Report_PRCom.007.jpeg
Example 6: migShop establishes central framework for the Companys expansion into social ecommerce
Over the period, the Company made numerous other updates including updating the badge and identity framework, numerous bug fixes, and extended its big data infrastructure in readiness for further integration in the second half of 2016.
Financial Results and Capital Markets
The Company has made progress during the period with cash receipts, growth and operating margin. Whilst capital markets for technology stocks may have softened during the first half of 2016, the company is encouraged by the outlook given the recent success of LINEs listing in Tokyo and Nasdaq.
The rate of Cash receipt growth slowed as the company turned its attention to quality of revenues as opposed to outright cash receipt growth (see chart 2 below). Games played a larger role during the period and with further integration planned over the next two quarter we look forward to being able to accurately report on platform gaming results.
http://www.irw-press.at/prcom/images/messages/2016/36361/16 07 20 Quarterly Report_PRCom.008.png
Chart 2: Financial results
As a matter of cost management, in July the company reduced its operating footprint in Singapore by moving all product and development to Taiwan, and rationalising corporate overhead and some business development resources. The company looks forward to being able to report these cost savings in the next reporting period.
On 30 June 2016, one of the worlds leading photo app developers Meitu Investment Limited (Meitu) subscribed for an additional 5,045,069 migme shares at a cost of $0.40 per share. This additional investment, from our strategic shareholder, sees Meitus shareholding increase to 5.71%.
Looking ahead
We are excited about the progress of the Company and the platform. Over the next few quarters, the company intends to continue to grow headline MAU and revenue, whilst deepening engagement and operating margins. Subject to market and business conditions, the Company is working towards being able to operate on a cash flow neutral position by early 2017.
Should you have any questions or inquiries, please do not hesitate to contact migme via email at investor(at)mig.me.
Yours sincerely
Steven Goh
CEO & Cofounder
migme Limited
Phone / Facsimile: (+61) 7 3901 0751
Contact: investor(at)mig.me | Web: http://company.mig.me
About migme Limited
migme Limited (ASX: MIG | WKN: A117AB) is a global digital media company focused on emerging markets. We deliver social entertainment services through mobile apps migme and LoveByte, artist management website alivenotdead, social news site Hipwee and ecommerce services through Sold and Shopdeca. The Company is listed and registered in Australia. Headquarters are in Singapore with offices in Malaysia, Indonesia, Taiwan and Hong Kong. For more information, please visit http://company.mig.me
This announcement is for informational purposes only and is neither an offer to sell nor an offer to buy any securities, or a recommendation as to whether investors should buy or sell.
Special Note on Forward-Looking Statements
This announcement contains information that may constitute forward-looking statements and uses forward-looking terminology such as anticipate, propose, expect, will and negatives of such terms or other similar statements. You should not place undue reliance on any forward-looking statement due to its inherent risk and uncertainties, both general and specific. Although we believe the assumptions on which the forward-looking statements are based are reasonable and within the bounds of our knowledge of our business and operations as of the date hereof, any or all of those assumptions could prove to be inaccurate. Risk factors that could contribute to such differences include, performance of our shares, the performance of global capital markets and companies in our sector, as well as factors relating to the performance of our business, including intense competition we face; failure to innovate and provide products and services that are useful to users; our ongoing need for capital for investment in new and existing business strategies and new products, services and technologies, including through acquisitions; the potential for declines in our revenue growth rate and downward pressure on our operating margin in the future; increased regulatory scrutiny that may negatively impact our business; legal proceedings that may result in adverse outcomes; failure to maintain and enhance our brand; uncertainty as to our ability to protect and enforce our intellectual property rights; and uncertainty as to our ability to attract and retain qualified executives and personnel. The forward-looking information provided herein represents the Company's estimates as of the date of the announcement and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future intentions as of any date subsequent to the date of this announcement. Our plans may differ materially from information contained in the forward-looking statements as a result of these risk factors or others, as well as changes in plans from our board of Directors and management.
Leseranfragen:
Datum: 21.07.2016 - 15:52 Uhr
Sprache: Deutsch
News-ID 484676
Anzahl Zeichen: 14822
contact information:
Town:
Wien
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 385 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"migme Limited: Quarterly Operations Report
"
steht unter der journalistisch-redaktionellen Verantwortung von
MIGme Ltd. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
