Mavshack quarterly report 1 - 2014

The first quarter started in the same expansionary pace as 2013 ended. Mavshack’s goal for the first quarter was 500 000 registered users and the goal was achieved by far; the number of registered users landed on over 515 000 as of March 31. This means that we had a growth of over 150 percent for the first quarter.

Sales for the first quarter reached SEK 5.4 m, which is an increase of about 170 percent compared to the previous quarter. This means that the average income has gone up from SEK 10 to SEK 11 per user and quarter, compared to the previous quarter. Our efforts to bring up the numbers of users will of course continue, but work will also be done to increase the average revenue per user for the next quarter. In order to achieve that, we will intensify our marketing campaigns in the coming spring/summer of 2014.

In the first quarter, we invested over SEK 10 m in Mavshack’s brand through different marketing campaigns, particularly in our key markets India, the Philippines, the U.S. and Britain. Mavshack will continue to build a strong global brand, and in order to do this, the company will continue its ambitious marketing investments. The main strategy is to focus on targeted marketing campaigns where you reach end users directly.

With the marketing efforts up till now, Mavshack have managed to consolidate its position as a major player in the Internet television field, which has been a necessity in order to close all the major content agreements that we have, especially on the Indian market. We are therefore now not only the world's largest subscriptions-based Internet television service for Filipinos but also on Indian content and we will have over 9,400 Indian titles on mavshack.com shortly. This compared to our closest competitor with their approximately 3000 titles.

Furthermore, our increased presence on these markets opened up for new potential partners which means that we will be able to present several exciting cooperation agreements within short.

The interest in Mavshack remains high among investors, especially from abroad, and therefore we have been able to make two private placements, both towards U.S funds and to other foreign investors. For this reason, the Board of Directors has decided that the listing should be transferred to the NASDAQ OMX First North and we will also begin the process towards a listing on SGX (Singapore Stock Exchange). The first step will start immediately, provided that Mavshack’s application is approved, we expect the listing to be moved to NASDAQ OMX First North, by the last week of May.

Mavshack will adapt its communication for the upcoming list changes, therefore we will not communicate the number of registered users per month, but instead offer faster quarterly reporting.

For 2014, our goal is to reach 2,000,000 registered users. We will put an even greater focus on driving revenue per registered user and see great opportunities to increase it from its current level.