Cash Revenues Q2 FY18 $22.5m and Operating Surplus of $10.3m
December 2017 Quarterly Update & Appendix 4C
BIG achieved a cash profit of $10.3m for Q2 FY18 from operating and investing activities and a further $5.6m was received from the exercise of share options resulting in a net increase in cash of $15.8m and a closing cash balance of $31.4m.
Financial and Operations Overview
Cash-flow Performance and Management
- Cash Receipts from Customers of $22.5m, up 460% from Q2 FY17. This includes $2.4m in Cash Receipts from Customers in the US, an increase of 267% on the prior quarter.
- Operating and Investing Activities generated a cash profit of $10.3m for the quarter as the Company maintained its global cash-flow positivity.
- Operating and Investing expenses well controlled, delivering a 46% cash margin and the Company continues to run cash-flow positive in the US as initial operations start to deliver cash revenues.
- Increase in operational expenses over the quarter reflects ongoing operational growth alongside investment in US expansion, investment in technology and marketing costs.
- Revenue generated from existing customers totalled $2.8m in Q2 FY18. This represents 82% of revenue generated from customers in the corresponding quarter Q2 FY17 following sales resources focusing on the monetisation and conversion of new FAB and BHA customers during Q2 FY18.
- The BIG database of members and subscribers grew to 131,400 members, an increase of 472% from prior year, following the completion of the acquisition of the hospitality vertical (FAB) from The Intermedia Group.
- The sales pipeline includes 14,700 customers who have made a purchasing decision, of whom 6,800 have taken a paid membership (a conversion rate of over 40%). There are a further 17,700 in the sales pipeline currently and 34,000 Hair and Beauty (BHA) subscribers plus 65,000 Hospitality (FAB) subscribers.
- Paid memberships of 6,800 represent an increase of 149% from Q2 FY17.
- Offering of larger bundled video memberships resulted in continued lift in ARPU to $8.2k (up 89% from Q2 FY17)
- Video content views continued to grow to 50.4m, up 137% from Q2 FY17
- Sales operations continue to expand in both Australia and the US and the Company continues to focus on reducing the cost of sale using strategic sales centre locations and targeting localities that offer high quality recruitment of personnel. Further USA operational updates to come.
- Autogen: BHA and FAB databases now being integrated for implementation of Autogen video campaigns Q3 FY18.
Commenting on the outlook for the business Richard Evertz says, "The Company growth continues at an incredibly exciting pace, reflecting continued high demand for our video technology platform and products. We have ended this quarter with a healthy cash surplus and are excited at the Company outlook for the coming financial year. We look forward to passing the milestone of achieving a cash revenue run rate of $100m in the near future as we focus on consolidating our first to market advantage in Australia through our key verticals and focus on US expansion. The management team are laser focused on the execution of our global growth strategy, customer retention and forming deeper relationships with our customers through cross-pillar marketing activity and the development of partnerships in key vertical markets both in Australia and overseas."
About Big Un Ltd
Big Un Ltd (ASX:BIG) is the parent company of Big Review TV Ltd. Big Review TV are innovative disruptors in the online video space delivering subscription based video technology products and services. The Company has operations across Australia and in New Zealand, the United Kingdom and the United States, Hong Kong, Singapore and Vancouver and was listed on the ASX in December 2014.
Big Un Ltd