15 May YuuZoo’s Revenue Increased 58% to US$ 9.6 Million Year-on-Year for Three Months Ended 31 March 2015. Company Registered a Positive EBITDA of US$ 5.1 Million vs a Negative EBITDA of 0.3 Million for Q1/2014
Increase in revenue and EBITDA mainly attributed to the sale of exclusive franchise licenses, for which
payment is received in shares
Summary of financial results for three months ended 31 March:
Singapore, 15 May 2015: Singapore-listed YuuZoo Corporation Limited (“YuuZoo”) (SGX: AFC) is pleased to commence the financial year with 58% growth in revenue and a positive EBITDA of 5.1 million versus a negative EBITDA of 0.3 million in the corresponding quarter of 2014.
YuuZoo’s unique business model incorporates a payment model developed by a Big Four audit firm whereby the franchisee pay YuuZoo for the franchise license by issuing to YuuZoo, shares in the company owning and operating the license. This enables YuuZoo to achieve two key objectives; to over time get a significantly higher share of the recurring revenues from the advertising, e-commerce, games and payments revenue generated by the franchisee, and to correctly determine the value of the asset over time as the business of the franchisee develops. The assets will periodically be assessed to determine whether there has been any change in the value of the shares. Any such increase or decrease will be reflected by adjustment to the book value of the asset when the assessment is made. The next assessment is planned for at the end of 2015.
The Company earlier, in its full year 2014 results announcement, stated that it will recognize as revenue the full value of the assets (in the form of shares) it has received as payment for the licenses when franchisees commence operations. The Company has however decide to take a more conservative approach, and will recognize only 50% of the already heavily discounted valuation done by Big Four audit firm, with the balance 50% recognised when the franchisee has achieved its second-quarter targets.
YuuZoo commenced trading on the main board of the Singapore Stock Exchange in September 2014.
During Q1/2015, YuuZoo also announced the acquisition of IAHGames, a leading distributor of online and box games in South East Asia the acquisition, which is to be paid for 100% by issuing YuuZoo shares to the vendors, is subject to SGX approval.
During eight years of operations, IAH has built a registered user base in SEA of over 35 million users. The company holds regional rights to distributing and or publishing leading game titles such as Grand Theft Auto, Counterstrike Online and Granado Espada.
IAH’s publishing and marketing partners include in Vietnam the government-owned VTC Online, subsidiary of TV monopoly Vietnam Multimedia Corporation (VTC), with a reach to a large portion of Vietnam’s 90 million inhabitants, and in Thailand, with 66 million inhabitants, True Digital, a subsidiary of True Corporation, a communications conglomerate controlling Thailand’s largest cable TV provider TrueVisions, Thailand’s largest ISP True Internet, and its third largest mobile operator True Move.
The Company in Q1/2015 also significantly strengthened its management team by hiring experienced experts in key areas, including the hiring of Rio Inaba, former CEO of Indonesia for Rakuten, the world’s third largest e-commerce company and former Global President & Director of New Market Development, to manage YuuZoo’s e-commerce expansion.
Outlook for FY2015
YuuZoo is, through its unique partnership and franchise model, positioned strongly in the social e-commerce space. The company at the end of April announced the launch of a weekly 45-minute football show and 5-minute advertorial on TV in China at the Great Sport Media network channel of Shanghai Media Group, a TV channel with a reach in excess of 300 million TV viewers. It also announced a joint venture with Africa’s largest TV network NTA. The Company in the second quarter is expecting to start the local marketing of its virtual shopping mall with a growing number of partners and franchisees it earlier has signed agreements with. It also expects to sign new agreements with other partners and franchisees in several markets where it is in discussions.
Headquartered in Singapore and listed on the SGX mainboard (SGX: AFC), with access to over 85 million registered users and over 800 million TV viewers in 164 countries, YuuZoo in a unique way combines social networking, e-commerce, games and payments in a mobile-optimized, fully localized virtual shopping mall, where the consumer can access hundreds of targeted social networks, targeted shops and targeted entertainment through one single login. All networks are localized for each market as comes to language as well as merchandise and design. To see the networks, log into: www.yuuzoo.com and www.yuuzoo.cn For more information about the company, please log on to: www.yuucorp.com or www.yuuinvestor.com.
Macquarie Capital (Singapore) Pte. Limited (“Macquarie”) was the financial adviser to W Corporation Limited (now known as YuuZoo Corporation Limited) in relation to the acquisition of the entire issued and paid-up share capital of YuuZoo Corporation and its subsidiaries.