Big Un Limited Announce Q2 FY18 4C Results
Cash Revenues Q2 FY18 $22.5m and Operating Surplus of $10.3m
Big Un Limited (ASX:BIG, or ‘the Company’) is pleased to announce the release of its 4C
results for the quarter ended 31 December 2017 (Q2 FY18). BIG achieved cash receipts from
customers for the quarter of $22.5m (up 460% from Q2 FY17).
BIG achieved a cash profit of $10.3m for Q2 FY18 from operating and investing activities and
a further $5.6m was received from the exercise of share options resulting in a net increase in
cash of $15.8m and a closing cash balance of $31.4m.
Financial and Operations Overview
Cash-flow Performance and Management
• Cash Receipts from Customers of $22.5m, up 460% from Q2 FY17. This includes
$2.4m in Cash Receipts from Customers in the US, an increase of 267% on the prior
quarter.
• Operating and Investing Activities generated a cash profit of $10.3m for the quarter
as the Company maintained its global cash-flow positivity.
• Operating and Investing expenses well controlled, delivering a 46% cash margin and
the Company continues to run cash-flow positive in the US as initial operations start
to deliver cash revenues.
• Increase in operational expenses over the quarter reflects ongoing operational growth
alongside investment in US expansion, investment in technology and marketing
costs.
Operations
• Revenue generated from existing customers totalled $2.8m in Q2 FY18. This
represents 82% of revenue generated from customers in the corresponding quarter
Q2 FY17 following sales resources focusing on the monetisation and conversion of
new FAB and BHA customers during Q2 FY18.
• The BIG database of members and subscribers grew to 131,400 members, an
increase of 472% from prior year, following the completion of the acquisition of the
hospitality vertical (FAB) from The Intermedia Group.
• The sales pipeline includes 14,700 customers who have made a purchasing decision,
of whom 6,800 have taken a paid membership (a conversion rate of over 40%).
There are a further 17,700 in the sales pipeline currently and 34,000 Hair and Beauty
(BHA) subscribers plus 65,000 Hospitality (FAB) subscribers.
• Paid memberships of 6,800 represent an increase of 149% from Q2 FY17.
• Offering of larger bundled video memberships resulted in continued lift in ARPU to
$8.2k (up 89% from Q2 FY17)
• Video content views continued to grow to 50.4m, up 137% from Q2 FY17
• Sales operations continue to expand in both Australia and the US and the Company
continues to focus on reducing the cost of sale using strategic sales centre locations
and targeting localities that offer high quality recruitment of personnel. Further USA
operational updates to come.
• Autogen: BHA and FAB databases now being integrated for implementation of
Autogen video campaigns Q3 FY18.
Outlook
Commenting on the outlook for the business Richard Evertz says, “The Company growth
continues at an incredibly exciting pace, reflecting continued high demand for our video
technology platform and products. We have ended this quarter with a healthy cash surplus
and are excited at the Company outlook for the coming financial year. We look forward to
passing the milestone of achieving a cash revenue run rate of $100m in the near future as we
focus on consolidating our first to market advantage in Australia through our key verticals and
focus on US expansion. The management team are laser focused on the execution of our
global growth strategy, customer retention and forming deeper relationships with our
customers through cross-pillar marketing activity and the development of partnerships in key
vertical markets both in Australia and overseas.”
