MySQUAR Limited ("MySQUAR" or the "Company")
Final Results & Posting of Annual Accounts
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, announces its final results for the year ended 30 June 2017.
Key highlights in FY2017:
§ Revenue for the year ended 30 June 2017 was US$ 1,057,383 (2016: US$ 795,191).
§ Total expenses for the year were US$ 3,057,831 (2016: US$ 2,560,783) including US$ 267,778 of share-based payment expenses.
§ The Group made significant progress this year across gaming and app product releases. During the year four hard core games, one casual game and a casual gaming platform with a total of six mini-games were released. Across apps the VOIP app was released on a trial basis along with updated versions of MyChat and the mobile marketplace. The mobile money application (in cooperation with MyPay Ltd) remains pending as MyPay awaits its operating license in Myanmar.
§ MyChat released its first premium content this year with a sticker store in April 2017 and a dating feature in June 2017. The sticker store has both free and paid stickers with new sticker sets added monthly. Date is becoming increasingly popular and is regularly enhanced with both free and paid features.
§ As of 12 January 2017, the Group’s registered users across all applications and games were approximately 7.5 million.
§ The integration of Telenor Myanmar’s billing services was finalised on 21 March 2017 which allowed users to make purchases by deducting from their phone balance.
§ Lucky Wingabar, a casual gaming platform, launched on 29 March 2017 with five games and will have new games added periodically.
§ The VOIP app, CallHome, was launched on 31 March 2017 allowing users to make affordable calls to 190+ countries.
§ The convertible loan note (CLN) with Sandabel was terminated on 10 April 2017 with an undrawn amount of US $900,000 remaining and £2 million was raised through an oversubscribed placing.
§ The Group reached significant revenue milestones during the year of US $5,000 per day during the first week of May 2017, US $7,000 per day in early June 2017 and reached run rate operating breakeven revenue of US $8,500 per day in the last days of June 2017. This was achieved due to the integration with Telenor Myanmar and revenue from gaming and third-party application development services.
Post-period end highlights
§ The Group further diversified its product offerings on 6 July 2017 with the launch of Mingalarbar Morning, a news aggregator in Myanmar language.
§ On 31 July 2017, the Company completed a placing of 32,188,671 shares at 3.75 pence per share for £1,207,075.
§ On 10 August 2017, the Company released Land of Magic, the first mobile MMORPG (massively multiplayer online role-playing game) in Myanmar.
§ The fish hunting game MyFish celebrated its one-year anniversary on 22 August 2017.
§ A sleeker, redesigned website was launched on 1 September 2017 providing visitors more detail and visuals about the Group and its products.
§ The integration of Ooredoo Myanmar’s billing services was finalised on 19 September 2017 which allowed users to make purchases by deducting from their phone balance.
§ An MoU with Sealand Capital Galaxy Limited (London stock ticker: SCGL) was announced on 10 October 2017 to enter into a partnership for the mobile games of MySQUAR to be distributed under Sealand’s (through its subsidiaries) licence agreement on the Huawei inTouch platform and for Sealand’s mobile games to be distributed in Myanmar through the MySQUAR platform.
§ An MoU was announced on 19 October 2017 to enter into a partnership with other service providers for the financing and delivery of Wi-Fi services and digital content on Myanmar Railways.
§ The number of registered users grew by approximately 167% from 7.5 million on 12 January 2017 to over 20 million by 31 October 2017.
§ A new casual game FishHunter – Kotanger 3D was launched on 16 November 2017.
MySQUAR has achieved key targets for financial year 2017 and generated significantly higher revenue compared to last year. Last year our revenue was mainly derived from third-party application development services while this year the Group has established multiple revenue streams from games, third-party application development services and trials from advertising. MySQUAR has become the internet of everything in Myanmar with several leading brands including MyGame, MyChat and Mingalarbar Morning.
Over the course of the year, the Group focused on optimising operations of the gaming and apps divisions so that the technology and workflow processes are more streamlined to reduce the cost structure. Teams have deepened their understanding of the Myanmar market and consumer preferences, leading to more efficient and targeted product development and releases. Through its diversified product offerings, MySQUAR has developed an established user base of over 20 million registered users. MySQUAR is building a platform in mobile VAS where inter-related products and services can be easily integrated to create a deeper user experience.
Myanmar’s market fundamentals still remain strong with a population of almost 53 million where nearly half the population is under the age of 24 and a GDP per capita that has been increasing every year over the last 10 years by at least 5%. With such a young population that can learn quickly and is eager to access localised media and entertainment, it presents an excellent opportunity for MySQUAR’s products and services.
The Annual Report and Accounts for the year ended 30 June 2017 have been posted to shareholders and are available on the Group's website at http://investors.mysquar.com/annual-reports/.
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:
Eric Schaer (Chief Executive)
Tel: +65 6725 6388
Pham Dang Hung (CFO)
|SP Angel Corporate Finance LLP||Contact|
Tel: +44 (0) 20 3470 0470
|Beaufort Securities Limited||Contact|
Tel: +44 (0) 207 382 8300
Tel: +44 (0) 7816 770 758