Flexion Mobile Plc - Q4 and Year-End Report 31 March 2018

Jan18 - Mar18 Q4 financial performance

• IAP (In App Purchase) Revenue increased by 130% to GBP 689,286 (GBP 300,095 - comparable number for the equivalent period in the previous financial year)
• Total Revenue increased by 55% to GBP 723,626 (GBP 468,497)
• Gross Profit decreased by 12% to GBP 151,280 (GBP 172,339)
• EBITDA fell by 75% to GBP -554,721 (GBP 317,412)
• Loss per share increased by 202% to -1.27 pence (-0.42 pence)
• Cash amounted to GBP 7.4m (GBP 2.2m)
• New shares issued provided a total of GBP 5.3m net
• Operating Cash Flow increased by 160% to GBP 22,078 (GBP -36,678)

Apr17 - Mar18 12-month financial performance

• IAP Revenue increased by 97% to GBP 1,559,342 (GBP 792,374)
• Total Revenue increased by 50% to GBP 2,055,881 (GBP 1,372,799)
• Gross Profit increased by 43% to GBP 695,275 (GBP 486,797)
• EBITDA fell by 12% to GBP -1,480,748 (GBP 1,319,004)
• Loss per share increased by 22% to -2.47 pence (-2.03 pence)
• Cash amounted to GBP 7.4m (GBP 2.2m)
• New shares issued provided a total of GBP 5.3m net
• Operating Cash Flow fell by 13% to GBP- 896,353 (GBP -791,820)

Notes from the CEO

Flexion increases quarterly IAP Revenue by 130%

It is a pleasure for me to present our first quarterly report as a listed company. The focus of the quarter was to close our biggest round of funding to date while also preparing the company to go public. In total we successfully raised GBP 5.3m net in an oversubscribed round.

This funding will allow us to scale up our sales and marketing activities to increase the number of game developers on our platform and to grow our footprint by adding new partner channels.

It is still early days but it is great to already see quarterly revenue growth for our core business. IAP Revenue grew by 130%. This positive contribution was partly the result of new distribution from channels such as Amazon and a few new strong games but also improved monetization of existing games.

We have phased out our feature phone business in favour of the highly scalable and profitable IAP model. Therefore, Total Revenue growth (55%) was lower than IAP Revenue growth for the quarter.

The Feb18 fund raise in combination with a healthy quarterly Net Cash Flow from Operating Activities resulted in a cash balance of GBP 7.4m at the end of the quarter. This provides the company with the necessary fire power to fulfill its long-term mission to secure its position as the leading distribution platform for Android developers.

As a result, we are now actively recruiting in all areas in order to expand our operations with an immediate focus on further strengthening our sales and marketing teams. 

We have proven our value proposition, services and business model in the wider market and we are starting to see growth. Now it is time to scale and we are all looking forward to an exciting first year as a public company.

- Jens Lauritzson,  CEO