Full Year Revenue Guidance and Operational update
Animoca Brands continues to demonstrate significant quarter on quarter revenue growth, reaching $2m (unaudited) in Q3 2015.
Company provides guidance for revenue generated in the full year ending December 2015 of A$7.5 m, an increase of 88% on the previous corresponding period¹.
Strong operating metrics continue to drive revenue growth into Q4 2015:
Total cumulative app downloads since inception exceeding 163m as at October 2015, up 44% since 1 January 2015.
Monthly app downloads grew to an average of over 6m per month, an increase of 62% over the 2014 monthly average.
Monthly active users grew to an average of approximately 11m per month, an increase of 75% over average monthly active users in 2014
Partnership with globally-recognised brand Mattel, Inc. (NASDAQ: MAT) to jointly develop and launch mobile game applications progressing well with the first game (Ever After High™ Tea Party Dash) launched in October 2015 and a further two titles in development for release in 2015.
Distribution and publishing agreements with leading industry giants Ourpalm Co. Ltd. (SHE: 300315) and Tencent Holdings Ltd. (HKG: 0700) position the Company well for accelerated growth, revenues and user acquisition.
Company well positioned to accelerate revenue growth as it continues to expand its app portfolio while building a substantial user base - a significant organic distribution base for future app releases.
Hong Kong – 17 November 2015: Animoca Brands Corporation Limited (ASX: AB1 or the Company) is pleased to provide revenue guidance for the full year ending 31 December 2015 and an operational update on the Company.
Revenue guidance of A$7.5m for Full Year 2015
The Company provides revenue guidance of A$7.5m for the full year ending December 2015, an increase of 88% on the pro-forma unaudited revenue of A$3.9m recorded during the full year ending December 2014².
The Company grew revenue steadily over the past four quarters from Q4 2014 through Q3 2015 and forecasts continued quarter-on-quarter revenue growth into Q4 2015, as per the above graph³.
Continued strong operating metrics driving revenue growth into Q4 2015
Actual and forecast key 2015 quarterly performance metrics of the Company are provided as follows:
Key drivers of revenue growth in 2015 are the increase in total app downloads, and increasing service revenues related to game development.
Monthly downloads grew to an average of over 6m per month, an increase of 62% over the 2014 monthly average, and total downloads grew by 39% over the10 months, to October 31st 2015, to a grand total of 163m downloads since inception. From July 2015, the Company saw a significant uplift in total downloads due to the addition of new titles to the portfolio. The high number of total downloads for the Company’s apps demonstrates strong demand and validation of the Company’s ability to publish and promote apps to new and existing users.
Monthly active users (MAU) of the Company’s apps increased from 7.9m in Q1 to 10.9m in Q3, a 38% increase over the period. Monthly active users grew to an average of approximately 11m per month, an increase of 75% compared to the 2014 monthly average of active users.
MAUs represent an important metric for the Company. It drives advertising revenue and cross-promotion of new products to an established and receptive distribution network.
The Company’s apps have been downloaded over 50 million times since listing on the ASX in January 2015, providing further validation of Animoca Brands’ portfolio approach strategy. During 2015, the number of apps published by the Company rose from 336 at the end of 2014, to 394 as at the end of Q3 2015.
The Company remains focused on expanding its broad catalogue of mobile games in order to diversify its audience and attract and engage new users.
Partnership with globally-recognised brand Mattel, Inc.
The Company’s partnership with global toy brand Mattel, Inc. (NASDAQ: MAT) was announced in May 2015. Joint development of new Mattel branded games is progressing well, with the first title Ever After High™ Tea Party Dash launched in October, and two further titles scheduled for release this year. Under the agreement, the two companies jointly develop and publish games based on Mattel’s global brands, with several more titles in the development pipeline for release in 2016.
Continued expansion and diversification of portfolio, driving growth through key partnerships with leading distribution networks
The Company’s strategy is to develop a broad portfolio of mobile games to drive user growth and increase its monthly active user base to generate revenue opportunities across new and existing products.
Key game launches for the Company in 2015 include:
Doraemon Gadget Rush: YTD downloads of 6.5m, an increase of 5.2m from the 1.8m downloads announced shortly after launch in February 2015. Ourpalm (SHE: 300315), a strategic investor of the Company and one of China’s largest mobile game publishers, signed an agreement with Animoca Brands in May 2015 to publish the Android version of the game in China.
Paris Hilton virtual goods: license agreement secured in March 2015 - the Company created the “Paris Hilton Collection Vol. 1” of virtual items for in-game purchase in Star Girl, a leading female role-playing game. Since their introduction, the branded virtual products helped drive 2.75m downloads of Star Girl as at end of Q3 2015.
Garfield Chef: The latest launch in the Company’s catalogue of Garfield titles was featured as part of Google’s “Designed for Families” program, and generated 325,000 downloads since its launch in June 2015 on Apple’s App Store. The Android version of the game launched on Google Play on 10 November 2015.
Ever After High™ Tea Party Dash: launched at the end of October 2015, marking the first in a series of launches based on brands licensed from Mattel. Although the app was only recently launched, initial customer feedback is overwhelmingly positive and early indications show average revenue per daily active user (ARPDAU) is higher than expected.
During the year, the Company signed key distribution and publishing agreements with leading industry giants Ourpalm Co. Ltd. (SHE: 300315) and Tencent Holdings Ltd. (HKG: 0700) which position the Company well to accelerate growth in revenues and user acquisitions.
Animoca Brands CEO Robby Yung commented:
“Since listing earlier this year, we have made significant progress, achieving strong growth momentum across both our game portfolio and user base. We remain the only pure play mobile game company listed on the ASX, and we have an exciting opportunity to penetrate the Australian and Asian markets, worth over US$13 billion and accounting for 55% of the revenues of the global mobile gaming market.
“As a growing business, we continue to expand our library of licensed IP and our distribution network with industry giants to enable us to accelerate growth in 2016 and beyond. We have a strong leadership team in place to execute on our corporate strategy and accelerate growth in existing and new markets.”
¹This announcement contains forward looking statements and forecasts that are subject to risks and uncertainties. Such statements involve known and unknown risks that may cause the actual results, performance or achievements of the Company to be materially different from the statements in this announcement. None of the Company, its directors or any other person can give any assurance that the forecast information or any prospective statement in this announcement will be achieved. The 2014 revenues are comprised of pro forma results from January – June 2014, audited results from August – December 2014, and unaudited management accounts for July 2014. The pro forma revenue figures above are originally in US$ and were disclosed in the Company’s prospectus issued in December 2014 and have been translated to A$ for reference purposes only. The rate used is the year end US$/A$ FX rate of the RBA, namely 1.2192 for the year ending 31 December 2014.
²The 2014 revenues are comprised of pro forma results from January – June 2014, audited results from August – December 2014, and unaudited management accounts for July 2014. The pro forma revenue figures above are originally in US$ and were disclosed in the Company’s prospectus issued in December 2014 and have been translated to A$ for reference purposes only. The rate used is the year end US$/A$ FX rate of the RBA, namely 1.2192 for the year ending 31 December 2014.
³Some of the quarterly revenue figures illustrated in the chart and table are originally in US$ and have been translated to A$ for reference purposes only. The rates used are the year end US$/A$ FX rate of the RBA, namely 1.1675, 1.2712, 1.2839, 1.3105, and 1.3917 for each of Q4 2014 through Q4 2015, respectively.
About Animoca Brands
Animoca Brands Corporation Ltd (ASX: AB1) publishes globally a broad portfolio of mobile games, including several games based on popular intellectual properties such as Garfield, Mattel, Ultraman, and Doraemon. The company’s games have been downloaded over 160 million times. Animoca Brands is based in Hong Kong. For more information visit www.animocabrands.com. For ongoing updates, follow Animoca Brands on Facebook, Twitter or Google +.