MOL Global Inc. Reports Unaudited Financial Results for

MOL Global Inc. Reports Unaudited Financial Results for the Three Month Period Ended September 30, 2014, and Other Material Developments

KUALA LUMPUR, Malaysia, Dec. 1, 2014 (GLOBE NEWSWIRE) -- MOL Global, Inc. (Nasdaq:MOLG) ("MOL" or the "Company", a leading e-payment enabler for online goods and services in emerging and developed markets, today announced (i) its unaudited financial results for the third quarter of 2014; (ii) certain errors in Revenue and Direct Cost and Other Ancillary Expenses in its Consolidated Statements of Profit or Loss and Other Comprehensive Income for the six month periods ended June 30, 2013 and 2014 and the year ended December 31, 2013 associated with the Company's Vietnam subsidiary; (iii) that following NASDAQ's placing a T12 temporary trading halt on MOL's American Depositary Shares ("ADSs" on Monday, November 24, 2014, the Company has been formally requested to provide certain information to NASDAQ and (iv); the approval by the Board of Directors of the Company (the "Board" of a share repurchase program.

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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December 01, 2014 08:01 ET (13:01 GMT)