Growth in users and monetisation
Migme Ltd (ASX:MIG) is a global digital media company focused on emerging markets. It delivers social entertainment services through mobile apps (migme and LoveByte) and an artist management website, alivenotdead.com. By taking a different approach to the more established Facebook (NASDAQ:FB), MIG believes its platform will have little competition for its freemium offering. This approach is validated by the rapid growth in user numbers, which increased by 4m to >14m in Q115.
Audience builders drive user growth
The growth rate in user numbers continues to build as MIG adds more artists, bloggers and audience builders to its migme platform. During Q115 MIG increased the number of audience builders from 150 to 380. The unique MIG model of sharing revenue with the artists is expected to drive further growth in the number of audience builders and therefore the number of users.
Cash receipts double
The activation of the DOKU payments platform in Indonesia in March 2015 and the launch of Sold.sg in Malaysia contributed to the increase in cash receipts over Q115. Cash receipts for the March 2015 quarter were A$1.12m compared with A$0.56m in Q414.
Share placement
On 13 April 2015 MIG completed a share placement of A$7m through the issue of 10.4m shares at A$0.67 to sophisticated and professional investors. This provides MIG with ~A$10m to continue to fund the current cash burn of A$1m per month and to maintain opportunistic acquisitions. We expect the cash burn rate to decrease in line with increases in user monetisation.
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