September 2015 Quarterly Trading Update
Sydney, Nov 2, 2015 AEST (ABN Newswire) - 99 Wuxian, (
ASX:NNW) ("99 Wuxian" or "the Company") is pleased to provide a trading update for the September 2015 quarter.
Highlights:
- Gross Transaction Value of RMB 12.0 billion over the last twelve months ("LTM") 30 September 2014, up 53% over the twelve months to 30 September 2014
- Total registered user base of 49.0 million, up 34% from 30 September 2014
- 48.3 million transactions completed on the platform over the LTM, up 68% over the twelve months to 30 September 2014
- LTM revenue of RMB 179.8 million, up 21% over the twelve months to 30 September 2014
Key performance metrics can be viewed in the link below.
Registered users
99 Wuxian's registered user base reached 49.0 million in the September quarter, growing by 12.5 million since 30 September 2014. The growth in registered users reflects the continued success of 99 Wuxian's joint marketing campaigns with its business partners, increasing penetration rates among mobile banking users and the expansion of the platform through the addition of new business partners and distribution channels.
Transactions
During the quarter, a record number of 15.0 million transactions were completed through the platform. On an LTM basis, 48.3 million transactions were completed through the platform an increase of 68% over the twelve months to 30 September 2014. The increase in transaction volume has been driven by the growth of the registered user base and increasing levels of user engagement.
Average Transaction Value ("ATV")
The average value of all transactions completed on the platform for the quarter was RMB 246, up 24% over the prior corresponding period ("pcp"). Over the last twelve months, ATV has declined 8% from RMB 271 to RMB 248. The movement in ATV is the result of changes in user behaviour and a proactive strategy to increase user engagement on the platform through marketing initiatives including the use of promotional discounts.
Gross Transaction Value ("GTV") and platform revenue
99 Wuxian generated record GTV of RMB 3.7 billion for the quarter, up 101% over the pcp. On an LTM basis, GTV totalled RMB 12.0 billion, representing a 53% increase over the twelve months to 30 September 2014. The growing number of registered users, transaction volumes and transaction values all combined to deliver the record result.
For the third quarter, 99 Wuxian reported revenue of RMB 39.6 million, a 6% decrease from the same period in 2014. On an LTM basis, 99 Wuxian reported revenue of RMB 179.8 million, up 21% over the twelve months to 30 September 2014.
Revenue performance during the quarter was impacted by the use of promotional discounts as part of 99 Wuxian's pro-active user acquisition and engagement strategy. The Company has driven both GTV and registered user growth by directly passing on a proportion of the commission it receives from merchants to consumers. The use of promotional discounts has been offset by a significant decrease in fixed marketing expenses compared to the pcp. The Company actively manages its acquisition and engagement strategy and will continue to review, consider and implement appropriate strategies to drive the future growth of the platform.
To view the release, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-NNW-889038.pdf
About 99 Wuxian Ltd
99 Wuxian Ltd (ASX:NNW) aggregates over 300 million high quality consumers and 155 leading merchants through a marketplace embedded within the mobile apps of China's leading banks, telecommunications and insurance companies. 99 Wuxian enables increased customer satisfaction, loyalty and retention for its business partners by offering consumers the lifestyle convenience of purchasing virtual and physical goods on a mobile device.
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