MOL Global Inc. Reports Unaudited Financial Resul
Post# of 22710
KUALA LUMPUR, Malaysia, Dec. 1, 2014 (GLOBE NEWSWIRE) -- MOL Global, Inc. (Nasdaq:MOLG) ("MOL" or the "Company"
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Third Quarter 2014 Highlights
-- Consolidated revenue increased by 5.6% to MYR47.7 million (US$14.5
million) from MYR45.2 million in the corresponding period of 2013.
-- MOLPoints' segment revenue increased by 12.7% to MYR30.5 million (US$9.3
million) from MYR27.1 million in the corresponding period of 2013.
-- MOLReloads' segment revenue increased by 3.0% to MYR9.4 million (US$2.9
million) from MYR9.1 million in the corresponding period of 2013.
-- MOLPay's segment revenue increased by 48.7% to MYR3.6 million (US$1.1
million) from MYR2.4 million in the corresponding period of 2013.
-- MMOG.asia's segment revenue decreased by 36.7% to MYR3.9 million (US$1.2
million) from MYR 6.2 million in the corresponding period of 2013.
Mr. Ganesh Kumar Bangah, Chief Executive Officer of MOL, stated, "Despite some volatility in the start of our life as a public company, we are pleased to report growth for our core, e-payments platform. The discovery of an error in the presentation of revenue and direct costs and other ancillary expenses at our Vietnamese subsidiary as well as softness in our MMOG.asia gaming business have created volatility that we are addressing. On the gaming front, the softness was primarily due to a rapid shift in gaming habits whereby consumers are spending more time playing games on smartphones as compared to online. In order to address this, we are expanding our interaction with mobile app stores, game developers as well as other mobile partners."
Mr. Bangah continued, "On our core e-payments business and growth front, we achieved several key business milestones during the quarter. These milestones included growth for MOLPoints, MOLReloads and MOLPay, the completion of our PayByMe carrier billing acquisition, the signing of a new licensing agreement to launch a game in the Middle East and Brazil as well as the signing of MOUs with several major retail chains to execute our gift cards strategy. Each of these milestones is vital for our strategy to expand into new markets, execute our mobile strategy, grow our online merchant network and accelerate real world payments in all of our key geographic markets. We believe that these initiatives are the key building blocks that will help us to meet our vision of becoming the leading e-payment platform for digital services in emerging markets."
Third Quarter 2014 Business Milestones
-- Completed the PayByMe carrier billing acquisition which should enable MOL
to collect payments from consumers of its merchant clients via its
agreements with 27 mobile carriers across 10 countries in the Middle
East.
-- Memorandum of Understanding (MOUs) to roll-out point-of-sale activated
gift cards signed with six major retail chains in Malaysia, Indonesia and
Thailand including prominent global convenience stores in Malaysia,
Thailand and Indonesia. Collectively, these retail chains have more than
11,000 retail outlets and will distribute both mobile application store
gift cards and e- commerce gift cards on behalf of MOL commencing in the
first half of 2015.
-- MOLStore, a mobile application store built on the Android operating
system, was rolled-out in Malaysia. MOLStore will leverage the MOLPoints
micropayment system to cater to third party application developers that
requires alternative payments in emerging markets. MOLStore has initially
signed 36 mobile games during the quarter.
-- MMOG.asia, which has the exclusive global licensing rights, excluding
Greater China, for the web-based, multiplayer game titled Stallion Race,
has agreed to license its publishing rights in the Middle East and Brazil
to a key MOLPoints game publishing partner. As part of the agreement,
MMOG.asia collected an upfront MYR5.0 million payment, which will be
recognized as revenue over the contractual period.
Third Quarter 2014 Financial Results
CONSOLIDATED REVENUE
Consolidated revenue increased by 5.6% to MYR47.7 million (US$14.5 million) in the third quarter of 2014 from MYR45.2 million in the corresponding period of 2013. Consolidated revenue increased primarily due to the growth of MOLPoints and MOLPay, despite the decline in MMOG.asia revenue over the corresponding quarter. MOLReloads' grew marginally over the corresponding quarter.
-- MOLPoints' segment revenue increased by 12.7% to MYR30.5 million (US$9.3
million) in the third quarter of 2014 from MYR27.1 million in the
corresponding period of 2013 primarily due to increased MOLPoints'
volumes in Thailand and an increase in revenue share in Malaysia,
partially offset by decreased volume in Turkey.
-- MOLReloads' segment revenue increased by 3.0% to MYR9.4 million (US$2.9
million) in the third quarter of 2014 from MYR9.1 million in the
corresponding period of 2013 primarily due to increased volume in
Malaysia.
-- MOLPay's segment revenue increased by 48.7% to MYR3.6 million (US$1.1
million) in the third quarter of 2014 from MYR2.4 million in the
corresponding period of 2013 primarily due to increased volume in
Vietnam.
-- MMOG.asia's segment revenue decreased by 36.7% to MYR3.9 million (US$1.2
million) in the third quarter of 2014 from MYR6.2 million in the
corresponding period of 2013 primarily due to decreased volume resulting
from a rapid shift from online to mobile gaming, which has resulted in
the declining popularity of the Company's legacy online games. This
decrease was further compounded by technical delays in introducing and
monetizing new mobile games on the Company's platform.
DIRECT COST AND OTHER ANCILLARY EXPENSES
Direct cost and other ancillary expenses increased by 32.2% to MYR22.4 million (US$6.8 million) in the third quarter of 2014 from MYR16.9 million in the corresponding period of 2013.
-- MOLPoints' segment direct cost and other ancillary expenses increased by
30.7% to MYR15.7 million in the third quarter of 2014 from MYR12.0
million in the corresponding period in 2013 due to increased volumes
outside of Malaysia, where channel costs are higher than in Malaysia.
-- MOLReloads' segment direct cost and other ancillary expenses increased by
28.0% to MYR4.3 million in the third quarter of 2014 from MYR3.3 million
in the corresponding period in 2013 due to increased volume.
-- MOLPay's segment direct cost and other ancillary expenses increased by
59.8% to MYR2.2 million in the third quarter of 2014 from MYR1.4 million
in the corresponding period in 2013 due to increased volume and higher
channel costs in Vietnam.
-- MMOG.asia's segment direct cost and other ancillary expenses declined by
16.2% to MYR0.15 million in the third quarter of 2014 from MYR0.18
million in the corresponding quarter due to decreased volume.
GROSS PROFIT (1()
Gross profit decreased by 10.4% to MYR25.3 million (US$7.7 million) in the third quarter of 2014 from MYR28.2 million in the corresponding period of 2013. The decline was primarily driven by decreased segment gross profit in MMOG.asia, which has a higher gross profit margin than our other segments.
-- MOLPoints' segment gross profit decreased by 1.7% to MYR14.8 million in
the third quarter of 2014 from MYR15.1 million for the same period in
2013 due to increased volume.
-- MOLReloads' segment gross profit decreased by 11.5% to MYR5.1 million in
the third quarter of 2014 from MYR5.8 million for the same period in 2013
due to lower revenue share.
-- MOLPay's segment gross profit increased by 34.0% to MYR1.4 million in the
third quarter of 2014 from MYR1.0 million for the same period in 2013 due
to increased volume, partially offset by lower gross profit from newly
signed large merchants.
-- MMOG.asia's segment gross profit decreased by 37.3% to MYR3.8 million in
the third quarter of 2014 from MYR6.1 million for the same period in 2013
due to declining popularity of legacy games.
OPERATING EXPENSES (2()
Total operating expenses for the third quarter of 2014 increased by 8.1% to MYR20.8 million (US$6.3 million) from MYR19.2 million in the corresponding period of 2013. This increase was primarily attributable to an increase in employee expenses.
PROFIT FROM OPERATIONS
Profit from operations in the third quarter of 2014 decreased by 50.0% to MYR4.5 million (US$1.4 million) from MYR9.0 million in the corresponding period of 2013. This was mainly due to lower gross profit contribution from MMOG.asia and higher employee expenses.
ADJUSTED EBITDA
Adjusted EBITDA in the third quarter of 2014 decreased by 28.5% to MYR10.8 million (US$3.3 million) from MYR15.1 million in the corresponding period of 2013.
OTHER INCOME
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