Interim Report 1st quarter - 2015Summary of first quarter, 2015
Significant events
- Temporary stop of bulk sales in conjunction with revision of company sales process.
- Halved operating costs as a result streamlining organization.
- New business strategy in the works.
- New partner for the Filipino market.
- Successful completion of new share issue.
- Net sales for the period amounted to SEK 0.1 million (SEK 5.2 million)
- Operating profit for the period amounted to SEK - 10.9 million (-13.1 million)
- Profit after tax amounted to SEK - 12.6 million (-13.1 million)
- Earnings per share amounted to SEK - 0.35 (-0.42)
Events after the first quarter
- New share sale issue fully covered
- Agreement to obtain IPR for original content production Key figures
| |
Q1 2015 |
Q1 2014 |
FY 2014 |
FY 2013 |
| Net sales (KSEK) |
52 |
5 167 |
50 871 |
5 081 |
| Net result (KSEK) |
- 12 583 |
- 13 115 |
- 32 078 |
- 14 022 |
| Total assets (KSEK) |
61 149 |
34 357 |
64 842 |
15 393 |
| Solidity (%) |
37 |
16 |
36 |
77 |
| Net earnings per share (SEK) |
- 0,35 |
- 0,42 |
- 0,90 |
- 0,53 |
| Number of shares outstanding (share register) |
35 458 545 |
31 111 323 |
35 458 545 |
26 383 864 |
CEO's comments
The results for the first quarter has highlighted weaknesses in the company's operational business structure. We have identified necessary actions and are implementing these, alongside a new and revised strategy.
The slump in revenues is mainly due to our key partner in the Philippines and its retailers have not followed through on their commitments. In January, the partner was replaced by Ambientmedia, a part of a conglomerate with a proven track record of productivity. Our new partner also took over unsold inventory. Together we have devised an action plan to decrease the inventory. A decrease in inventory at our new partner will have a positive impact on Mavshack's cash flow, but no effect on sales.
Another challenge we are addressing is the net loss of recurring subscribers. Our analysis shows that higher relevance and frequency of content library updates would make the service more attractive. As previously announced, Mavshack has begun working on acquiring relevant content that attracts and maintains paying subscribers. Improving user experience on all our platforms is also an important factor to attract more recurring customers.
Our priority going forward is to establish stable and reliable revenue streams. We have pinpointed two specific areas to increase revenues.
Firstly, the company's sales strategy needs to focus on Indian and Filipino populations outside of their home countries.
Secondly, Mavshack will add new revenue streams from proprietary content. By producing proprietary TV series or films, Mavshack can sell content to other platforms while making it available on the global Mavshack service.
Mavshack has the ingredients to create sustainable revenue streams that will generate a positive cash flow. All this will not be done by tomorrow but we are on our way.
Summing up, Mavshack is a contender in a competitive and fast growing industry. Through stable revenue streams from subscription sales and content rights, Mavshack is positioned to become a successful player within Asian entertainment for a global audience.
Stockholm April 28, 2015
Jonas Litborn
President & CEO
Next report
Second quarter interim report will be published on 28 August.
The full report is attached. Stockholm April 28th 2015
Mavshack AB (publ)
The Board For more information, contact:
Mavshack AB (publ)
Karlavägen 58
11449 STOCKHOLM SWEDEN
[email protected]
All reports are available after publication on Mavshack's corporate website www.mavshack.se.
The following documents can be retrieved from beQuoted
Mavshack Interim Report Q1 2015 English.pdf About Mavshack
Mavshack is a global internet-TV service provider bringing Asian entertainment to viewers around the world. The service is available via subscription and prepaid cards used in offline sales, campaigns and promotions. Mavshack's viewers can use our service on all online devices such as tablets, smartphones and computers. In the near future Mavshack will also be integrated with Smart TVs, game consoles and digital TV boxes.
Mavshack offers a wide variety of Asian entertainment including high quality movies, concerts and music videos. Currently a vast amount of our content is from India and the Philippines but we are continuously adding content from other Asian countries. With global licensing agreements we offer a truly global service.
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