Quickflix Growth Accelerates in the September Quarter
Quickflix Limited (ASX: QFX), Australia’s leading online DVD rental and movie subscription company today announced continuing strong growth in subscriber numbers as its paying subscriber base increased eleven percent in the three months to 30 September 2009 to 33,059. This rate of growth, which exceeded that of the previous quarter, was in line with the Company’s expectation. Highlights for the quarter were:
• Paying subscribers of 33,059 at 30 September, up 11 percent in the quarter (+31 percent YOY)
• Revenue receipts of $1.74 Million and operating payments of $2.18 Million
• Net operating and investing cash outflow of $0.44 Million for the quarter
• Successfully completed a $1.2 Million rights issue following the $0.75 Million placement in June
• Net cash at bank at 30 September 2009 was $1..75 Million
Momentum is building from the solid base established in the last financial year. Quickflix has increased its investment in growth to acquire new subscribers and expand its content library following completion of the recent capital raisings, supporting further momentum growth.
A combination of factors is driving subscriber growth. Organic search traffic is increasing with growing brand awareness and the conversion of all web traffic to sign-ups is also increasing. New partnering activities have also contributed to growth. The introduction of new subscriptions in prior periods including lower price points and capped plans improves retention and long term subscriber profitability whilst reducing the rate of growth in revenue and fulfilment cost in the short term.
The outlook for the coming quarter is continuing strong growth with the Company targeting a further 10 percent increase in paying subscribers.
Quickflix Ends FY with Turnaround Performance
Quickflix Limited (ASX: QFX) posted its results for the June quarter today concluding a year in which the Company performed strongly in a very challenging economic environment.
Highlights for the year were:
• Paying subscribers as at 30 June, 2009 were 29,910 up 17 per cent for the year with most of the growth coming in the last two quarters;
• Revenue receipts grew by 12 per cent to $6.9 Million whilst operating payments were down by 14 per cent to $7.4 Million;
• Net cash outflow reduced from $4.95 Million in the previous year to $1.48 Million for the year ended 30 June 2009; and
• Net cash at bank at 30 June 2009 was $1.19 Million having recently successfully completed a $0.75 Million private placement.
In the June quarter, Quickflix repeated the solid growth in paying subscribers of the previous quarter. This was all the more pleasing as it was achieved on minimal marketing spend, Quickflix Managing Director Simon Hodge said.
“Our service offering is in the sweet spot for Australian householders looking for affordable quality entertainment. As a brand we also have early mover advantage as increasingly consumers turn to online” Mr Hodge said.
In addition to the private placement which raised $0.75 Million in June, Quickflix has recently announced a fully underwritten 1 for 6 rights issue to raise a further $1.2 Million to fund its expansion.
Founder and Executive Director of Quickflix, Stephen Langsford said: “The outlook for the coming quarters is very positive. The capital raised from the recent private placement and the announced fully underwritten rights issue will fund the next step change in our subscriber numbers and build on our momentum”.
