Quickflix stays in trading halt as company blames Netflix for falling subscriber numbers

QuickflixStreaming service Quickflix has requested that the ASX allow it to remain in a trading halt until Wednesday as it continues negotiations with an unnamed “international” player about a potential “acquisition”.

The trading halt comes as the company’s latest quarterly report (ASX: QFX), put out late on Friday afternoon, shows the number of Quickflix subscribers declining on both a quarterly and year-on-year basis despite the recent explosion in consumer awareness and sign up to rival services.

Quickflix blamed “pent-up demand for Netflix in particular” for causing a sharp decline in customers early in the quarter, but more concerning for the company is its cash on hand which as of June 30 was $913,000, following its recent capital raising which brought in $775,000.

That suggests the company will require another financial investment to remain viable as the statement shows Quickflix had an operating loss of $1.096m this quarter, up from the $850,000 it lost last quarter, as revenue receipts declined 15 per cent to $4.2m.

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