Mobile Games and Social e-commerce in China Continue to Power MNC MEDIA's Revenue Growth

- Group sales surged 47% in first nine months of FY2015 to US$58.5 million
2015-12-07 15:00 2707

SINGAPORE, December 7, 2015 /PRNewswire/ -- Strong demand for mobile games and social e-commerce in China has continued to propel MNC Media Investment Ltd (ASX: MIH) ("MNCMI" or "the Group"), a provider of media and entertainment content and services in key strategic markets in Asia, to chalk up record sales of US$58.5 million in 9MFY2015 ended 30 Sep 2015.

Mr Hary Tanoesoedibjo, Chairman and CEO of the Group said: "The 47% revenue hike from the corresponding period last year demonstrated the success of the Group's strategic thrusts in China, the world's largest consumer market."

"With the rising popularity of our mobile games Boonie Bears and other popular games such as Armoured Warriors, the Group has booked US$40 million in revenue from its mobile games segment in the first nine months, which saw a 34% increase compared with the corresponding period last year."

"Our social e-commerce business in China continued to enjoy strong growth as our proprietary online parenting and family oriented portal -- Fumubang achieved revenues of US$9.7 million in the first nine months or more than quadruple the revenue for the corresponding period last year."

The record numbers delivered by both the mobile games business and Fumubang in China underscore the Group's knack in capitalizing on the rising tide of mobile games and social e-commerce in China.

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The Group revenue powered ahead to hit US$58.5 million for 9MFY2015 versus US$39.7 million in 9MFY2014. Business in China continued to be the main revenue driver for The Group with sales topping US$53.6 million or 92% of total group revenue.

Gross profit for The Group shot up by 35% to US$14.4 million in 9MFY2015 from US$10.7 million during the same period in 2014 on the back of the higher turnover in 9MFY2015.

Operating expenses rose to US$17.9 million in 9MFY2015 due to increased spending in China to develop our mobile games and online parenting portal, Fumubang.

The Group however reported a net loss of US$11.4 million in 9MFY2015 due to increased foreign exchange losses from depreciation of the Indonesia Rupiah against US dollar, offset by unrealized gain in quoted securities. The Group however narrowed its loss from its discontinued operations.

Working capital position remains healthy with US$97.2 million of cash and cash equivalents and short term investments as at 30 September 2015. Group loss per ADR widened to US$0.28 in 9MFY2015 from US$0.26 in 9MFY2014 and Net Asset Value ("NAV") per ADR increased to US$0.28 for 9MFY2015 from US$0.26 for 9MFY2014 due to losses from revaluation of investments in quoted securities.

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Mobile Games

Revenue from mobile games had accounted for 68% of total group revenue and stood at US$40 million or 34% higher compared with that of 9MFY2014.

The surge in mobile game revenue in 9MFY2015 was driven by increased sales in The Group's key entities -- Boonie Bears (BB2) and Armoured Heroes. Both games have been downloaded more than 258 million and 82 million times respectively to date.

Social E-commerce

Social e-commerce refers to our Fuubang web portal in China and Okezone web portal in Indonesia. The Group's revenue from social e-commerce for 9MFY2014 nearly tripled to US$10.5 million from US$3.7 million for the corresponding period last year.

Social e-commerce revenue accelerated with the rapid growth of ("Fumubang"), the group's parenting and family-oriented edutainment portal in China. For 9MFY2015, this app had booked a revenue of US$9.7 million, a 303% increase from US$2.4 million for 9MFY2014. This phenomenal growth was driven by Fumubang's success in increasing our market share in family travel, activities and tickets purchase via the app.

Going Forward

According to Niko Partners, the leader in Asian Games Market Intelligence, China domestic revenue from mobile games will reach US$5.5 billion vs US$3.3 billion in 2014, which will surpass that of US sales in this year. The market size is forecast to increase to US$11.1 billion by 2019.

"To tap the robust trends, we plan to accelerate the development of our game portfolio and increase usage among gamers. We are investing and acquiring new intellectual properties ("IPs"). We are expecting to launch several new games in the pipeline for the remaining part of the year," said Mr. Tanoesoedibjo.

"While China continues to face challenges from a slowing economy, its recent announcement to end its long-standing one-child policy will open new horizons for us as a new baby boom is expected. This will lead to stronger emphasis on children's all-rounded development in China, which will present greater growth opportunities for Fumubang. We are enhancing our Fumubang site with a view to unveil several new offerings to engage our users more actively. With our established brand and wide network in China, we will be well-positioned to fast-track our expansion plans," he added.

About MNC Media Investment Ltd

Established in 1999, MNC Media Investment Ltd is a provider of rich and engaging services and content to a wide range of traditional and new media consumers and enterprises in Mainland China, Indonesia, Malaysia, Hong Kong and Singapore.

Its full array of services includes providing entertainment content to internet and mobile users, mobile game services, media content distribution and related services, operating online news and entertainment and parenting portals, and trading in quoted securities.

MNC Media Investment Ltd's shares are listed on the Australian Stock Exchange and quoted on the OTC Markets Group's OTC Pink. It is a subsidiary of PT Global Mediacom Tbk -- which owns one of the largest and most integrated media groups in Southeast Asia.

For more information, please contact:
Tham Moon Yee / Cheng Wang
Tel: +(65) 6227 0502

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Source: MNC Media Investment Ltd