Social media tech company, Migme (ASX:MIG), has reported a loss in its 2014 annual report.
The company’s financial results for that year indicated a 74 per cent decrease from the year before in gross profit, tabulating to just $592,286 in 2014 from $2.3 million in 2013. Similarly, its operating revenues decreased, dipping by 34 per cent to $1.9 million in 2014 from $2.9 million in 2013.
But the company indicated the financial results for the year included considerable one-time merger expenses of Migme, as well as post-merger expenses for the build out of operations infrastructure and market growth activities.
It also stated the 2014 loss after tax of $28 million includes more than $20 million of goodwill write-off and non-cash share based payments and one-time merger related expenses.
Migme chairman, Howard Dawson, said during the first six months of the year, the company was largely pre-occupied with the preparation for its proposed listing on the ASX, which successfully occurred on August 11 last year.
“During the two months leading up to this listing, the company began the process of gearing itself up for expansion and was pleased to report the placement of 19.9 per cent of the company to FIH Mobile, which is part of the Foxconn Technology Group,” he claimed.
Dawson mentioned it was a significant achievement for Migme to secure the Foxconn Technology Group as a cornerstone investor as it provided an impetus and capital for its planned expansion into a social media and entertainment company for emerging markets.
“Following the listing, we were able to re-focus the business at hand, which was to ready itself for growth. This process included the recruitment of additional key personnel, the establishment of additional regional offices and the implementation of key marketing campaigns to grow the monthly active users to over 10 million by year-end.”
The outlook for 2015 is for Migme to build on and broaden the gains made since completion of the merger. The Company is said to focus its activities on opportunities for adding new products and technology through development and/or acquisition, large scale distribution deals including handset pre-installs, apps and media and telco partnerships, engagement activities through games and monetisation growth through premium activities.
“As we enter 2015, our committed staff is poised to enter the next stage of its development. This will naturally be the continued growth in user numbers and reach of our social entertainment platform, and also the monetising of Migme’ s growing customer base,” Dawson added.