ASX:BIG
17th May 2017
FY17 Cash Revenue Guidance Update
FY17 $20.3m and Cash Flow Positive
Big Un Limited (ASX:BIG, or ‘the Company’) is pleased to provide a guidance update on
cash receipts anticipated for FY17 of $19.5m excluding receipts from BHA Media Ltd (BHA).
Receipts from BHA are anticipated to be in excess of $0.8m and provide the Company with
combined results for full FY17 of $20.3m (an increase of 399% on FY16 of $4.1m).
This represents a material increase in the forecast numbers. Prior guidance for FY17 was
given as $15.5m excluding BHA.
The Company is also pleased to advise that it anticipates remaining cash flow positive.
Customer Retention
Growth in Revenue Generated from Existing Customers
BIG has been approaching existing customers over the past 12 months to offer them
renewals and upgrades to new products and can now publish the consolidated results of this
exercise
The Company has focussed resources on approaching bigger SMEs within the
customer database and presenting higher value video products in order to realise the
most efficient and effective outcome for the Company.
• Cash revenue for Q3 FY17 totalled $5.6m of which $1.01m was from existing
customers. This compares with a total Company video cash revenue for the same
period in the prior year Q3 FY16 of $1.03m or a notional revenue churn of only 3%
from the same period in the prior year.
• For the past 12 months, cash revenue from existing customers was $2.65m
compared with a total company video revenue over the corresponding prior year of
$2.22m representing an increase in cash revenue of 19% (or a negative churn)
• The Company is also experiencing significant contract renewal rates from Australian
Not for Profit organisations who are purchasing repeat Big Cares packages following
completion of their initial 12 month contracts.
Company Outlook
Strong pillar one revenue from video technology continues with robust customer retention
levels and increased ARPU. BIG is continuing to invest in the focussed expansion of the
sales resources and operations to meet local and international market demand. Commenting
on the outlook for the business Richard Evertz says “ As we see the demand for video grow
and the BIG business model mature, it is extremely comforting to see good customer
retention figures and subscribers who are spending increased amounts with us. We expect to
remain cash flow positive and to exceed our previous guidance for FY17. Further, from the
acquisition of BHA we now have a direct relationship with over 50,000 businesses and are
expecting these strong trends to continue going forward”
