The group said it made “significant progress” with its gaming and app product releases, launching four ‘hard core’ games, one casual game as well as a gaming platform which features six mini-games.
MySQUAR also released the first premium content for its MyChat messaging app during the year and added a dating feature in June, while its VOIP phone app CallHome made its debut.
Integrated billing services
In March, the firm struck a deal with mobile network Telenor Myanmar which allows MySQUAR customers to purchase apps and content by deducting from their phone balance.
The new apps and services helped registered user numbers soar, and the figure currently stands at just over 20mln compared to ‘just’ 6mln this time last year.
Unsurprisingly, more users translated into more money for MySQUAR, which generated revenues of US$1.06mln (2016: US$795,000) in the 12 months to June 30.
Several revenue streams established
In the final few days of June, the group reached run rate operating breakeven revenue of US$8,500 per day.
MySQUAR said the improved top line performance was brought about through establishing several revenue streams – games, third-party app development services and ads – compared to just one notable stream last year – third party app development.
The company also made strides on an operational front as its teams “have deepened their understanding” of the Myanmar market, while a lot of work has also been put in behind the scenes to optimise and streamline the technology and workflow processes.
Total expenses in the year were US$3.06mln, resulting in an overall loss before tax of US$2.00mln (2016: US$1.75mln).
Looking to achieve profitability ‘as soon as possible’
This has been a rather productive financial year as the Group solidified its position as a leading consumer technology company in the Myanmar market,” said chief executive Eric Schaer.
“Two of our games are in the top three free game downloads on the Google Play store.
“We continue to be recognised as a pioneer in Myanmar with the only local chat app to include a dating feature, launching the first news aggregator and offering the largest variety of hard core mobile games.
“Our key objective for MySQUAR this year will be to achieve profitability as soon as possible.”
Market fundamentals remain strong
MySQUAR told investors that the market fundamentals in Myanmar “still remain strong”, given that almost half of the 53mln-strong population is under the age of 24.
The economy in the country continues to grow as well, with GDP per capita increasing by at least 5% each year for the past decade.
“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.”
MySQUAR had US$742,000 of cash in the bank at the end of the period having raised £2mln (US$2.65mln) during the period.
That figure is likely to be higher now though after it raised another £1.21mln (US$1.6mln) in August.
The company terminated its convertible loan note with Sandabel in April with an undrawn amount of US$900,000 remaining.
In late afternoon trading, MySQAUR shares were down 11.5%, or 0.25p at 1.92p.
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