Quickflix has seen its subscriber base fall again, with its latest market update showing its paying subscribers fell by 22 per cent in he final part of 2015.
Source: ASX Update. Click to enlarge.
The troubled DVD and video streaming company had 117,106 subscribers a year ago, but had just 91,817 as of December 31.
Last quarter Quickflix, which has been in an ASX trading halt since July, lost $164,000 and now has just $659,000 in cash on hand after receiving a $600,000 research and development grant.
On Christmas Eve the company announced a restructure and refinanced loan arrangements with the major studios, in an attempt to stem losses of more than $850,000 a quarter.
Receipts from customers fell from $5.007m a year ago to $3.263m and the company noted that it was again looking for a new capital raising as well as looking for “corporate opportunities including potential transactions with complementary content, digital consumer, ecommerce or technology services businesses.”
Langsford: Quickflix to seek new capital.
Earlier this week Quickflix founder Stephen Langsford told Mumbrella they were unable to match the budgets of their rivals Netflix, Stan and Presto and were pivoting to focus on transactional business, online movie rentals and its still profitable DVD delivery business.
“This is a really challenging sector,” said Langsford. “Clearly Quickflix doesn’t have the balance sheet of the other players so we are going to be playing a different game.
“We have been in a situation where we haven’t been able to spend money on marketing and the like and if we are saying we are only going to keep to the business model around SVOD that would be a different matter but already we are playing in TV on demand, EST (electronic sell through), SVOD and DVDs still.
“There are certainly some great advantages in the EST market because we play in an earlier window particularly when it comes to movies.”
The company has already gone through several recapitalisations in its bid to survive, and there are already 1.8bn shares issued in Quickflix, which has a share price of just $0.001.