Net Registered Users Surpasses 7.9 Million; Average Monthly Total Reach Hits 26.0 Million
Source: Viggle, Inc.
Viggle Inc. (VGGL), the entertainment marketing and rewards
platform, posted strong double-digit growth in its key operating and
financial metrics for its second quarter fiscal year 2015 ended December
31, 2014. Year-over-year revenue and sequential quarterly growth were
significant, as were engagement and registered users. Revenue grew 43
percent to $7.185 million in F2Q 2015, compared with F2Q 2014, while
sequential quarterly revenue grew 11 percent from $6.476 million in F1Q
2015.
The average monthly total reach for the quarter ended December 31, 2014
was 26.04 million, compared with 17.34 million for the year-ago quarter,
and 23.81 million for the quarter ended September 30, 2014.
Almost one million new users registered on the Viggle platform during
the quarter, bringing net registered users to more than 7.9 million,
compared with 3.7 million net registered users as of the end of the
year-ago quarter, an increase of 116 percent.
Viggle’s quarter was highlighted by new key partnerships including HGTV,
HitFix, Gracenote, and a new mobile technology in collaboration with
Opera Mediaworks that allows TV network advertisers the ability to offer
a brand-new call to action, Add-to-DVR, as part of their mobile
campaigns. Rewards and content offerings were also expanded, giving
Viggle users the ability to rent or own TV shows and movies from M-GO,
the premium digital video on demand (VOD) service and joint venture
between Technicolor and DreamWorks Animation.
In October 2014, Viggle secured a $30 million investment through a
securities purchase agreement with Sillerman Investment Company III, an
entity owned by the Company’s Chairman and CEO, Robert F.X. Sillerman.
Proceeds from the funding were used to repay $15 million of existing
indebtedness and for working capital purposes including marketing, and
to fuel innovation for its marketing and rewards platform.
On January 23, 2015, Robert F.X. Sillerman, Chairman and CEO of both SFX
and Viggle, announced that SFX entered into a sales agency agreement
with Viggle that is expected to significantly bolster Viggle’s brand
partnership, media and sponsorship capabilities. According to the
three-year agreement between SFX and Viggle, the combined sales
organization at SFX that will now represent Viggle to brand advertisers
will sell all inventory for both companies. Combining efforts and
inventory with SFX will give Viggle access to a significantly broader
client base and sales opportunities.
Greg Consiglio, President and COO of Viggle, said, “The results indicate
that the Viggle platform is truly grabbing hold. Increases in all
metrics point to increased customer acceptance and adoption brought on
by a wide variety of factors. Execution of what we described in our IPO
is a testimonial to both the vision of the company and the fabulous men
and women who are making it a reality.”
As of the end of F2Q 2015, Viggle users have checked into 451,944,633 TV
programs and matched more than 105 million songs using the Viggle Music
service. As of December 31, 2014, users have redeemed more than 49
billion points for approximately 4.1 million rewards, an average of
12,035 points per reward redemption. The total retail value of rewards
redeemed through December 31, 2014 is approximately $22 million.
Overall, users’ average time in the Viggle app has been more than 63
minutes per session.
For F2Q 2015, Viggle reported an Adjusted EBITDA loss of $7.0 million as
compared to an Adjusted EBITDA loss of $5.2 million in F2Q 2014 and $7.8
million in F1Q 2015. Sequentially, non-marketing operating costs fell by
$1.2 million and marketing spend increased by $1.1 million as compared
with F1Q 2015 yielding lower Adjusted EBITDA losses. Adjusted EBITDA
loss grew as compared to a year ago due to increased marketing spend of
$3.3 million, partially offset by higher revenues.
For more details on these results and a description of all definitions,
please see Viggle’s quarterly form 10-Q filed this same date.
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