Animoca Brands Q1 2016 Report
Cash receipts from customers grew to A$2.72m, a 70% increase on the December 2015 quarter (A$1.6m) and a 325% increase on the prior corresponding March 2014 quarter (A$0.6m)
Unaudited revenue of A$2.18m, compared to A$2.39m in the December 2015 quarter, an 82% increase on the prior corresponding March 2015 quarter (A$1.4m)
Revenue growth driven by increasingly engaged users (MAUs 13.3m), a result of highly popular games launched in partnership with Mattel and expanded distribution channels
Installations continue to rise, with a total of 26.7m new downloads during the quarter, bringing the total to over 200m, a significant milestone for the Company
Company remains well funded to drive forward product and partnership expansion strategies following a successful Institutional Placement of A$6.5m post the quarter
29 April 2016: Animoca Brands (ASX: AB1 or the “Company”) has today released its Appendix 4C Report for the three-month period to 31 March 2016 and is pleased to provide a review of the progress made during period.
Financial and Operational Update
Cash receipts from customers was A$2.72m during the March 2016 quarter, representing a 70% increase on the December 2015 quarter (A$1.6m) and a 325% increase on the prior corresponding March 2014 quarter (A$0.6m).
Unaudited revenues based on management accounts of A$2.18m were recorded in Q1 2016, an average of A$727,246 per month, compared to unaudited revenues of A$2.39m in Q4 2015. Q4 is typically the highest revenue period of the year due to seasonal factors surrounding the Christmas holidays where downloads and user activity is highest.
Revenue growth was driven by an ongoing increase in downloads and active users, which can be attributed to a number of new and highly popular games launched in partnership with Mattel and expanded distribution channels, particularly in China.
During the quarter, the Company experienced net operating cash outflows of A$1.6m mainly due to ongoing and increased investment in the development of ebooks. The Company ended the quarter with a cash balance of A$3.03m. Advertising and marketing cash outflows totaled A$1.05m and other working capital amounted to A$1.05m during the quarter.
Unaudited Revenue and Downloads
During Q1 2016, key operating metrics performed strongly with the average monthly active users (“MAU’s”) reaching 13.3m, up 46% on Q4 2015 and 68% on the corresponding Q1 2015. MAUs were driven by the expansion of the Company’s branded app portfolio including the addition of games based on the highly popular Mattel brands, such as Thomas & Friends™ and Ever After High™ as well as Garfield Chef published by Xiaomi in China. However, since these particular titles did not carry advertising, the increase in active users did not result in a commensurate increase in revenues.
An average of 8.9m new users per month downloaded an app, an increase of 68% on Q4 2015 and 65% on the corresponding Q1 2015 period. The Company’s total downloads across its game portfolio reached over 200m at the end of the period, a significant milestone in the Company’s trajectory. During the period, the Company released 22 new titles, bringing the total number to 433.
In the previous December 2015 quarter the Company launched its first games in partnership with Mattel, Ever After High™ Tea Party Dash and Thomas and Friends™: Race On! as well as Ever After High™ Charmed Style during the quarter. These games have proven to be highly popular, having received 6.2m downloads through April 17th, and have made a significant contribution to rising revenue.
In addition, the Company signed a number of distribution agreements for its apps, increasing its distribution channels and ability to generate user interest. In February, the Company announced it had partnered with Xiaomi, China’s largest smartphone maker, for the distribution of Garfield Chef. The app achieved over 1.5m downloads in the first month alone. The Company also partnered with Tencent for the publication of the highly regarded Groove Planet game across Android versions of Weixin, Mobile QQ, and Tencent App Store in China.
Post the quarter, the Company raised A$6.5m via an Institutional placement, which received considerable support from institutional, sophisticated and professional investors at A$0.20 per share, issuing 32.5m new shares. The Company has also issued a Share Purchase Plan (SPP) for up to $1m that closes on 6 May 2016.
The capital raised provides the Company with ample funding to continue to drive forward its growth strategy and accelerate the development of new mobile apps and the launch of subscription based e-books, in partnership with Mattel.