12 Nov YuuZoo’s Q3/2015 Revenues Grew 93% to S$ 42.6 Million, EBITDA Grew 692% to S$ 20.2 Million Compared to Q3/2014

Summary of financial results for nine months ended 30 September 2015:

 

2015

SGD

2014

SGD

Variance (%)

Revenue

42.6

22.0

93%

EBITDA

20.2

2.6

692%

EBIT

11.6

(1.1)

n.m.

 

Singapore, 12 November 2015: Singapore-listed YuuZoo Corporation Limited (“YuuZoo”) (SGX: AFC) is pleased to report a 93% growth in revenue for the nine months ended 31 September 2015, to S$ 42.6 million (US$ 30.0 million) and an EBITDA of S$ 22.0 million (US$14.2 million), up 692% over the same period last year.

With growth in all key areas, key contributors to the Q3 numbers were e-commerce, e-sports activities in China and the launch of a new sport franchise operation in the UK.

Q3/2015 Operational Highlights

  • In June, YuuZoo announced the formation of YuuGames—a joint venture with XG AMA, a leading organizer of e-sport events in China.  Under the joint venture (JV) agreement, XG AMA is committed to deliver a minimum of 5 million active paying users and a minimum profit of 1.5 million RMB during the first 12 months of operations.
  • YuuGames has in Q3/15 signed several major deals. The Company has secured the co-hosting and naming rights for Electronic Sports China Cup (ESCC), China’s major e-sport event run in conjunction with China’s Ministry of Culture. YuuGames also gained co-hosting rights for China Internet Gaming (CIG), another major competition in conjunction with the Ministry of Industry and Internet Technology. Having secured two of China’s largest e-sports events, YuuGames now is amongst the leading players in China in this fast growing and highly lucrative space. China is estimated to have more than 445 million gamers. In addition to the direct revenues from YuuGames, the competitions drive users to YuuZoo’s virtual shopping mall, raises YuuZoo’s profile and contributes to revenues and profits.
  • In Q3, YuuZoo acquired the user data of more than 26 million mobile game downloads and 11 leading mobile games from leading Chinese game developer Camigo Media. The acquired user base significantly increases YuuZoo’s reach in China, establishes the Company in China’s US$ 30 billion mobile games market, and like the e-sport events drives new users to YuuZoo’s virtual shopping mall.
  • Also in China, YuuZoo made an initial investment into China’s fast-rising film and entertainment industry by acquiring a 5% stake in RS Media & Entertainment Group, a Beijing-based developer of entertainment properties with dual Chinese and Western themes that have strong consumer appeal globally. The Company currently has US$600m of movies in negotiation or production.
  •  In the UK, YuuZoo has appointed a new franchisee, RM Powershot Challenge AB, who will solely focus on the sports vertical only. The CEO of the company has a strong track record in the sector, having signed deals with leading EPL teams such as Chelsea, Arsenal, Manchester City and Liverpool. While the franchise aims to penetrate deeper into football, the aim is also to expand into other areas of sport such as cricket, rugby etc.
  •  Q3 also saw YuuZoo successfully launch its gamified social e-commerce platform. It uses a patent-pending offering that enables consumers to earn discounts by playing games. The new platform is instrumental in YuuZoo’s expansion from B2B to B2B2C.
  •  To ensure access to capital as YuuZoo continues to grow both organically and through M&A activities, YuuZoo in Q3 secured a S$30 million, Three year capital commitment from GEM Global Yield Fund, a US-based private investment group.
  • Also in Q3, YuuZoo acquired the distribution and marketing rights for Circle of Champions (“CoC”), the world’s leading developer of mobile games for the world’s top football clubs. Clubs under contract include Barcelona FC, 2015 Champions League winner, Chelsea FC, 2015 EPL champion, Real Madrid, 2014 Champions League winner, Manchester City, 2014 EPL champion, AC Milan, the most successful club in UEFA history etc. Under the agreement with CoC, YuuZoo builds a platform where consumers can download and play the games, and visit “virtual clubhouses”, where fans can interact with each other and with the clubs, purchase fan merchandise, and, where applicable, engage in online betting. Revenues from in-app purchases, e-commerce, advertising and betting will be shared between CoC and YuuZoo.

Outlook for FY2015 and into 2016

Effective October 1st 2015, YuuZoo has appointed James Sundram as the Company’s new CEO. YuuZoo co-founder Thomas Zilliacus, who until October 1st functioned as both Chairman and CEO, has from the same date taken the position of Executive Chairman. With James Sundram in charge of all operational matters, Thomas Zilliacus will be able to focus fully on the Company’s strategy as well as growth through partnerships, mergers and acquisitions.

YuuZoo is, through its unique partnership and franchise model, able to quickly grow its international business. With new franchise operations now launched in the UK, Korea, Turkey, Poland, Romania, Czech Republic, Hungary and Bulgaria, with e-sport events and games launching with strong partners in China, and with the earlier announced operations in Nigeria, where YuuZoo has a joint venture with Africa’s largest TV network NTA and a distribution agreement with Etisalat, all expected to launch in Q4, the Company is expecting strong growth in Q4/2015 and throughout 2016.

Commenting on the Q3 financial results, CEO James Sundram said: “I am very excited to step in as CEO at this stage of strong growth. YuuZoo has built strong platforms in several key markets, including the world’s largest market China, and Nigeria, the largest market in Africa, where growth is exponential, especially in the mobile space. In both these markets, YuuZoo has built partnerships with leading players in the media and mobile industries. As CEO, I look forward to ensuring that the launches in all markets, where we are live or going live with partners and franchisees, result in strong and fast-growing revenues”, he concludes.

YuuZoo Chairman Thomas Zilliacus added: “The appointment of highly acclaimed James Sundram as YuuZoo CEO, with full responsibility for all operational matters, allows me to focus on building and strengthening our global business through new partnerships, mergers and acquisitions. Beyond China and Nigeria and the many new franchise markets we have launched, we are now looking at building equally attractive partnerships in other key markets, both in the developed and developing world”, he concludes.

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For more information, please contact:

Corporate Communications

Aru Adil Sayed

Head of Corporate Communications

DDI: +65-6577 0666

Mobile: +65-94249757

Email: aru.sayed@yuuzoo.com

 

ABOUT YUUZOO®:

Headquartered in Singapore and listed on the SGX mainboard (SGX: AFC), with access, after the recent acquisition of 26 million mobile gamers in China, to over 110 million users 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.