Animoca Brands Q1 2016 Report

 

Highlights:

• 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.

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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.