Welcome!

News Feed Item

Mobile Games Power MNC Media Investment's Turnover Surges to US$27m in 1H2014

- Mobile games sales in China soared more than four-fold to US$18.3million in 1H2014 from US$4.0 million in 1H2013

SINGAPORE, Aug. 29, 2014 /PRNewswire/ -- Within six months of its repositioning, MNC Media Investment Ltd (ASX: MIH) ("MNCMI" or "the Group"), a provider of media and entertainment content and services in key strategic markets in Asia, has seen its sales soar to US$27.0 million in 1H2014.

Hary Tanosoedibjo, Chairman and CEO of the Group said: "The Group's repositioning and transformation have borne fruit. Our strategic focus on digital games – particularly mobile games in China – has given us a shot in the arm – driving our performance up significantly in the first six months of this year. Compared to same period last year, we reduced our losses by 63% to US$1.9 million.

"With the positive results garnered from our vigorous efforts in the digital games/mobile games industry, we believe that our games will continue to build greater traction in our key market, China - in the coming months.

"We will focus on building a rich portfolio of media assets focusing on mobile games, social commerce and leisuretainment industries, in populous markets such as China and South East Asia. With a population of more than 200 million in Indonesia, the world's fourth populous country, and 1.3 billion in China, the world's most populous country, the opportunities for growth are extensive. We are confident that our prospects for the full year will be positive."

Financial Performance

Revenue surged 48% to US$27 million for the first six months ended June 30, 2014 ("1H2014") compared to the six-month period ended December 31, 2013 ("2H2013").

This was up 11% or US$2.6 million compared to the corresponding period last year ("1H2013").

The leap in sales was mainly due to the Group's new strategic emphasis on its mobile gaming business - which saw more than four-fold surge in mobile games sales in China.

Gross profit eased 8% to US$7.2 million from US$7.8 million in 1H2013. This was due to the distribution costs of mobile games and licensing fees for popular intellectual properties and animation characters such as Boonie Bears for the development and distribution of mobile games.

With the surge in sales, the Group trimmed its net loss from US$5.2 million in 1H2013 to US$1.9 million in 1H2014.

The net loss in 1H2014 was also cushioned by a net foreign exchange gain of US$1.9 million, compared to US$2.0 million of net foreign exchange loss in 1H2013. This foreign exchange gain was due to the appreciation of the Indonesia Rupiah against the US Dollar, which resulted in a significant foreign exchange gain for the Group's quoted investments that are denominated in Indonesia Rupiah.

Working Capital Position 

The Group's financial position remains healthy. Cash and cash equivalents remained relatively stable – easing marginally to US$27.5 million as at June 30, 2014 from US$28.3 million as at December 31, 2013.

Cash per Chess Depositary Interests ("CDIs") as at 30 Jun 2014 was US$2.90, which is close to two times of the CDIs current valuation.

Group operational cash outflow improved from US$3.8 million in 1H2013 to US$0.9 million in 1H2014.

Earnings Per Ordinary Share and Net Tangible Assets Per Share

The Group's Loss Per Ordinary Share was reduced to US 0.5 cent in 1H2014, compared to Loss Per Share of US 1.3 cents in 1H2013 while its Net Tangible Assets per share increased to US 39 cents as at June 30, 2014 from US 36 cents as at December 31, 2013.

Segmental Performance

Mobile and PC Games

Revenue from the Group's mobile games business in China, which is operated by the Group's subsidiary, Letang, was US$18.3million in 1HFY2014 soaring more than four-fold from US$4.0 million in 1H2013. Contributions from mobile games now represent 68% of the Group's total revenue, up from 16% in 1H2013.  Letang, a fast-growing mobile games company in Hefei, China, has achieved over 100 million downloads for its latest casual game Boonie Bear. This six-month old game has garnered revenue of close to US$14 million from China gamers alone. Letang will continue to focus on acquiring popular IPs for developing new games for China and International markets, including Russia, Brazil, Mexico, and Southeast Asia.

Revenue from its PC games business also climbed 25% from US$0.4 million to US$0.5 million in 1H2014.

Social Commerce

The Social Commerce segment contributed 7% to the Group's total revenue. It achieved sales of US$1.8 million in 1H2014, 63.6% higher than the sales of US$1.1 million recorded in 1H2013.

Under this segment, the Group owns a parenting and family-oriented entertainment portal, fumubang.com ("Fumubang"), which was developed and launched in Shanghai and Beijing in the second half of 2013. Adopting offline and online marketing strategies, Fumubang now has more than 400,000 highly targeted users (parents). While sales of US$1 million for the first half of 2014 in Shanghai and Beijing were highly encouraging, the Group will also seek to expand into other populous cities in China.

Outside of China, the Group also owns some online news and entertainment portals, including Okezone.com in Indonesia, which currently has over two million daily users, and a nascent e-retail business portal, Happybuys.com, which focuses on bringing popular entertainment related products to families worldwide at local prices.

Media Content

The Media Content business represents 16% of the Group's total revenue. It recorded US$4.4 million in sales in 1H2014, against sales of US$5.4 million in 1H2013. The decline is due to the weak demand for DVDs in Singapore, Malaysia and Hong Kong.

The Media Content business is operated by the Group's subsidiary, Innoform, which generates revenue from three categories namely, video (which includes the acquisition, licensing, and distribution of Asian and non Asian movies, and kids content across multiple platforms such as theatres television, video discs, and online and mobile devices in Singapore, Malaysia, Hong Kong and Indonesia), music (which includes licensing of karaoke music videos), as well as staging of concerts and events.

Telecommunication Value Added services (VAS)

Since its strategic transformation in the first six months of this year, the Group has trimmed its telecommunication value-added services (VAS) business significantly, while boosting its focus on mobile games.

The VAS business achieved sales of US$2 million in 1H2014 – down from US$13.5 million in the corresponding period last year. The decline is in line with the Group's strategy to transition away from the VAS business, and this revenue is from the licensing of the VAS short codes to third parties operators.

Going Forward

According to market research company EEDAR's research in 2014, the number of gamers in China is 517 million, surpassing the total number of citizens in the United States. China Game Publishers Association Publications Committee ("GPC") has also forecast that the games market in China will have an average annual growth rate of 15% from 2014 to 2017.

Southeast Asian markets are also experiencing rapid growth in online/mobile games. According to the report from Niko Partners, the Southeast Asian games market, (which includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam) will reach US$1.2 billion by 2017, double the figure in 2013.

With the recent change in China's one-child policy to allow parents (who are themselves single children) – to have two children, the number of babies is expected to grow substantially. With grandparents and parents doting on only two children, there is tremendous growth potential for our parenting portal Fumubang.com.

Going forward, in view of these favourable trends, the Group maintains an optimistic outlook for FY2014. For the second half ending 31 December 2014, the Group anticipates gross revenues to be in the range of US$23 million to US$27 million. These forecasts reflect the Company's current and preliminary view, which is subject to change.

About MNC Media Investment Ltd

MNC Media Investment Ltd is a provider of rich and engaging services and content to a wide range of traditional and new media consumers and enterprises in Mainland China, Indonesia, Malaysia, Hong Kong and Singapore. It focuses on media, entertainment, communication and edutainment products, which are promoted through the Group's strong nationwide distribution networks, integrated service platforms and multiple marketing sales channels, as well as through the networks of leading mobile operators in Mainland China and Indonesia.

Release issued on behalf of MNC Media Investment Ltd by Stratagem Consultants Pte Ltd

For more information, please contact:

Tham Moon Yee, Lee Yew Meng and Lucas Yang Xiaoguang
Tel: (65) 6227 0502
Emails:          
[email protected]
[email protected]
[email protected]

SOURCE MNC Media Investment Ltd

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
In the fast-paced advances and popularity in cloud technology, one of the most critical factors revolves around concerns for security of your critical data. How to assure both your company and your customers they can confidently trust and utilize your cloud environment is most often top on the list. There is a method to evaluating and providing security that exceeds conventional modes of protecting data both within the cloud as well externally on mobile and other devices. With the public failure...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Transforming cloud-based data into a reportable format can be a very expensive, time-intensive and complex operation. As a SaaS platform with more than 30 million global users, Cornerstone OnDemand’s challenge was to create a scalable solution that would improve the time it took customers to access their user data. Our Real-Time Data Warehouse (RTDW) process vastly reduced data time-to-availability from 24 hours to just 10 minutes. In his session at 21st Cloud Expo, Mark Goldin, Chief Technolo...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
Though cloud is the future of enterprise computing, a smooth transition of legacy applications and systems is critical for seamless business operations. IT professionals are eager to start leveraging the cost, scale and other benefits of cloud, but with massive investments already in place in existing infrastructure and a number of compliance and resource hurdles, it can be challenging to move to a cloud-based infrastructure.
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...