migme posts 393% rise in 1H 2016 revenue

• Revenue rises 393% to A$14.92 million
• Monthly active users rose 34% to over 43 million

MIGME Limited saw it's revenue increase 393% to A$14.92 million (US$11.36 million) for the first six months ended June 30, 2016 (1H 2016)  from A$3.03 million in the previous corresponding period.

migme is a global digital media company focused on emerging markets. The company delivers social entertainment services through its portfolio brands migme, LoveByte, alivenotdead and Sold. The service is accessible via mobile (including iOS and Google Play apps.) and desktop web.

Monthly active users (MAU) rose 34% during the same period to over 43 million.

The company also posted a net loss of A$13.62 million in 1H 2016, up 55% from A$8.8 million in 1H 2015. The loss is due in part to an increase in cost of sales by 210% to A$14.272 million and a 6% hike in R&D expenses to A$0.097 million.

Going forward migme will focus on advancing its business strategies in Indonesia, India and the Philippines.

1H 2016 saw Meitu Investment Limited, a photo app developer became a substantial shareholder in migme. In March 2016, Meitu subscribed for 11.65 million migme shares at A$0.60 each, raising A$7 million for the company.

Over the past six months, the company has progressed in growing its key operating metrics, as well as improving its user experience to increase user engagement. In 1H 2016 artist and verified user numbers increased to approximately 2,900, a growth of 368% from 1H2015.

E-commerce was integrated onto the migme platform via the acquisition of Indonesian e-commerce business Shopdeca and subsequently through the launch of migShop.

Currently the migshop store offers a curated selection of products from South East Asian ecommerce merchant Lazada and India’s largest online marketplace Snapdeal. More merchants are expected to be added in the coming months.

1H 2016 also saw the launch of the ‘Funkey’, which allows for the integration of other applications and games within the migme platform.

migme will continues to focus on building its user base and increasing user engagement in order to grow revenue, improve operating margins and increase shareholder value.

migme co-founder and CEO Steven Goh, said: “In the next six months we intend to continue to grow headline MAU numbers and revenue, whilst deepening our engagement with users. At the same time, we will continue to focus on reducing operating cash outflows and improving operating margins. Subject to market and business conditions, the company is working towards achieving cash flow positive operations by early 2017.”

migme also announced the appointment of Wang Po-Hsiang as a director.

Wang is Foxconn’s representative on migme’s board. Foxconn is migme’s largest shareholder with a 18.82% stake.
 
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