quarterly results, page-64

Given the recent discussions about the reporting of triallists in the quarterly report, i thought i do a little bit of quick analysis on these numbers.

Total paying customers Jun Qtr = 101,852
Subscriber churn Sept Qtr = 5.6%

Meaning that 5,703 paying customers ceased to be a paying subscriber in the Sept Qtr.

Paying subscribers Sept Qtr = 98,739

A decline of 3,119 paying subscribers.

If 5,703 ceased to be a subscriber due to churn, one can assume that there were 2,584 NEW paying subscribers in the Sept Qtr.

These 2,584 subscribers were off the back of 4,973 trial subscribers at the end of the Jun Qtr. With 2,584 of these going on to be a PAYING subscriber (or PPV transactional customer), the assumed conversion ratio of triallists/paying is 52%.

The Sept Qtr has 11,199 trial customers. If this conversion ratio was to continue, one can assume that 5,823 of these will become PAYING customers in the current Qtr.

If churn hold steady at 5.4%, churn for the current Qtr will result in a decline of 5,331 customers.... Or net customer growth 492 customers.

Not going to set the world on fire but a positive customer assessment at where QFX stands TODAY.

What this doesn't take in to consideration is the trial momentum gained at the end of the Qtr (ie. 1700 in one day). Even with the 10 week trials currently on offer, any trial customer in the 1st 2 weeks of October will convert (at 52%) in to a paying subsrcriber at the end of this Qtr.

Also good to note the historical strength of these quarters (Xmas and summer holidays) for customer acquisition, the continued emergence of the streaming industry, QFX cash in bank for marketing purposes and/or any positive announcements around content.