TIDMMYSQ
RNS Number : 6746F
MySQUAR Limited
30 October 2018
30 October 2018
MySQUAR Limited
("MySQUAR" or the "Company")
Placing, Joint Broker and Performance Update
MySQUAR, the Myanmar-language social media, entertainment and
payments platform whose principal activity is to design, develop
and commercialise Myanmar-focused internet-based mobile
applications, is pleased to announce that it has raised GBP
600,000, before expenses, by way of a placing of 171,428,571
ordinary shares of no par value ("Placing Shares") in the share
capital of the Company at a price of 0.35p pence per share
("Placing Price").
The Company is also pleased to update the market on its Key
Performance Indicator ("KPI") reporting and provide further details
on trading in the year ended 30(th) June 2018 following the trading
update announced by the Company on 5(th) October 2018.
Placing and Appointment of Joint Broker
The Company has raised GBP 600,000 before expenses, by way of a
placing of new ordinary shares in the Company arranged by SVS
Securities plc.
The Company will utilise the funds to fund the marketing and
promotion of its mobile money product, working capital and general
corporate expenses. To date, the Company has not drawn on the
available loan facility of $1m provided by Rising Dragon Singapore
Pte Ltd.
Application will be made for the Placing Shares, which will rank
pari passu with the Company's existing issued Shares, to be
admitted to trading on AIM. It is expected that Admission will
become effective and that trading in the Placing Shares will
commence on or around 5 November 2018.
SVS Securities plc has been appointed Joint Broker to the
Company with immediate effect.
KPI Reporting
The Board has reviewed the KPIs reported to the market in light
of the development of the Company's product set. Following that
review, the Company reports below those KPIs now considered by the
Board most appropriate to its three existing divisions (Mobile
Games, Media and Mobile apps and Business Advisory) and its new
Mobile Money Division following the acquisition of MyPay Myanmar
Limited.
The Company will cease to report registered users - being
individuals who have downloaded a game or an app and created a user
account - as it considers active users within each division a
better metric.
The Board believes the KPI's adopted by the Company and reported
today offer a more precise reflection of the Company's underlying
performance and which are in line with industry standards. These
KPIs relate to the first three months of the Company's current
financial year to 30(th) September 2018 and, for comparison
purposes, for the first and second halves of the year ended 30(th)
June 2018. The Company intends that these KPIs will be reported on
a quarterly basis.
The Company defines its KPIs as follows.
KPI Definition
-------------------------------- -----------------------------------
Monthly Active Users ("MAUs") The total number of users of
games and apps who have either
downloaded or used a game or
app in the month (averaged across
the number of months in the
relevant period)
-------------------------------- -----------------------------------
User Acquisition Cost Total marketing costs divided
by the number of new active
users in the period
-------------------------------- -----------------------------------
Average Revenue Per Paying User Average product revenue divided
("ARPPU") by the average number of paying
users
-------------------------------- -----------------------------------
Average Page Views per Session The average number of pages
viewed during a session
-------------------------------- -----------------------------------
Average Session Duration The average duration in minutes
spent on our website per session
As is common in the online media and games industry a single
user may have more than one registered account. The Company's best
estimate of current unique registered users is 6m to 7m.
KPI H1 Y2018 H2 2018 Q1 2019
------------------------------- --------- -------- --------
Mobile Games
MAUs 419,620 380,067 412,338
User Acquisition Cost $0.23 $0.18 $0.22
ARPPU $6.53 $7.38 $7.61
Media & Mobile Apps
MAUs 189,779 254,883 426,750
User Acquisition Cost $0.01 $0.01 $0.01
Average Pageviews Per Session 1.96 2.19 2.31
Average Session Duration
(minutes:seconds) 1:29 1:17 1:20
MAUs of the Company's games benefitted in H1 2018 from the
popularity of the "Lucky Wingabar" suite of games but this tailed
off during H2 2018. MAUs picked up again in Q1 2019 following the
successful launch of "Age of Glory". Nevertheless, ARPPU grew
steadily during 2018 and continues to do so as the Company has
focussed its marketing efforts on attracting paying users and not
merely free-to-play gamers. MAUs of the Company's flagship product
"Mingalarbar Morning" continued to grow during 2018 and Q1 2019
aided by greater local focus of content following the relocation of
editorial staff from Vietnam to Myanmar.
Revenue Review
Further to the trading update made on 5(th) October 2018, the
Company can provide the following revenue breakdown:
Revenue (USD) FY2017 FY2018 (unaudited) Change
Mobile Games 723,797 1,516,079 109%
Media & Mobile Apps 22,763 89,112 291%
Business Advisory 310,829 234,230 -25%
There was no revenue from the Mobile Money division during these
periods.
Mobile Games Division
A total of seven games were "live" in FY2018 (FY2017: seven
games). Three new games were launched in FY2018 ("Land of Magic",
"Fish Hunter 3D - KoTaNgar" and "Wushu King") which replaced three
games that had run their course in revenue generation FY2017
("Destroyer King", "Chakra Ninja" and "My Combo"). These three
newly launched games have proved popular and together with "MyFish"
and "Lucky Wingabar" have largely contributed to the doubling of
revenue in FY2018.
Media & Mobile Apps Division
The revenue increase from media and mobile apps in FY2018 was
due largely to CallHome, our VOIP service. We reported in the
Company's interim results for the period to 31 December 2017 that
CallHome was withdrawn from the market as a stand-alone product.
Integrating CallHome with Marketplace, (the classifieds advertising
section in Mingalarbar Morning) proved not to be viable and a
provision and impairment of intangible assets amounting to a total
of USD203,323 is expected to be made in the accounts to 30 June
2018 in respect of this product.
The Marketplace feature of Mingalarbar Morning currently has 62
sellers selling 953 items on the site. Currently, the Marketplace
continues to operate on a free to use basis to promotes page views
and session length for Mingalarbar Morning.
Revenues generated under the recently announced agreement to
sell advertising on WeChat will be reported in the Media and Mobile
Apps Division going forward.
Mobile Money Division
Following full launch of the Company's mobile money platform on
6 October 2018, the Company will provide details of app downloads,
MAUs, User Acquisition Cost and ARRPU for the Mobile Money division
in its next quarterly KPI report to the market. Revenue in the
current quarter (ended 31 December 2018) is unlikely to be material
however the Company is expecting a steady ramp up of revenues from
this division during the calendar year 2019.
The application to the Central Bank of Myanmar for a payments
licence is proceeding albeit at a pace slower than initially
anticipated. The Company remains confident in the licence being
granted. The grant of a licence is expected to increase the
achievable margins on payments transactions and enhance our
credibility within Myanmar.
Business Advisory Division
The Business Advisory division provides app development for
third parties service providers. During 2018, the Company has
largely focussed on the development of its in-house apps and has
not sought to replace advisory contracts as they expired.
As disclosed in the Trading Update on 5 Oct 2018, the loss for
FY2018 is expected to increase substantially as a result of the
acquisition costs of MyPay Myanmar, amortisation charges and the
one-off costs of staff rationalisation, management changes and
fundraising expenses. The Company is focussed on reducing costs and
increasing efficiency going forward.
Stephen Chong, Interim CEO, commented:
"We are grateful for the support shown by the new investors in
the Company and hope that our new reporting of KPIs will allow a
greater understanding of the progress being made to cement the
Company's position as a leading Myanmar-language social media,
entertainment and payments platform. The management team is
focussed on developing our new agreement to sell advertising on
WeChat and we are seeking to rapidly grow our Mobile Money offering
whilst managing costs carefully and nurturing our existing user
base"
Total Voting Rights
The Company hereby announces that following Admission it will
have 1,089,803,643 Ordinary Shares in issue, none of which are held
in Treasury. Therefore, the total number of voting rights in the
Company is 1,089,803,643.
The above figure of 1,089,803,643 may be used by shareholders in
the Company as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, the share capital of the Company
under the requirements of the Company's articles of
association.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information:
MySQUAR Limited
Stephen Chong (Interim Chief Tel: +65 6725 6388
Executive)
SP Angel Corporate Finance
LLP
Nominated Adviser & Joint Tel: +44 (0) 203 470
Broker 0470
Stuart Gledhill / Soltan Tagiev
Daniel Stewart and Company
Plc
Joint Broker Tel: +44 (0) 207 776
6550
David Lawman/Jon Levinson/Daphne
Zhang
SVS Securities plc
Joint Broker Tel: +44 (0) 203 700
Tom Curran 0093
Public Relations Tel: +44 (0) 781 677
0758
Damien McCrystal damien@mccrystal.info
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END
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October 30, 2018 03:00 ET (07:00 GMT)
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