Migme Ltd (AX:MIG) is a global social media company employing a freemium model to drive user engagement. It is focused on the emerging markets of Indonesia, the Philippines and India. At 31 March 2016 monthly active users (MAUs) totalled over 39 million (March 2015: over 14 million), an increase of 7m for the quarter. In the March 2016 quarter, cash receipts grew 32% to A$7.1m. This rate of increase in monetisation gives us confidence in our FY16 revenue forecast of A$46m. To achieve this forecast, quarterly increases in revenue (equivalent to cash receipts) would need to increase at about the same quarterly rate (32%).
Artist and entertainment partner growth of nearly 2,000 in the quarter was primarily driven by the acquisition of alivenotdead (acquired in 2014), various partnership agreements and the activation of artists signed in 2015. Through the agreement signed with Creative Artists Agency (CAA), migme expects growth to accelerate. CAA brings to the migme platform artists from Hollywood and Bollywood. CAA has particular expertise in India, where Bollywood provides a unique celebrity and entertainment ecosystem. These artists are attracted to the migme platform because it provides an alternative to the ‘pay and play’ model employed by Facebook (NASDAQ:FB). MIG helps artists to build a fan base, and engage with and generate revenue from the fans. The signing of more artists is expected to be a key factor in increasing MAU and cash receipts.
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