FY17 $20.3m and Cash Flow PositiveSydney, May 17, 2017 AEST (ABN Newswire) - Big Un Limited (ASX:BIG) ('the Company') is pleased to provide a guidance update on cash receipts anticipated for FY17 of $19.5m excluding receipts from BHA Media Ltd (BHA). Receipts from BHA are anticipated to be in excess of $0.8m and provide the Company with combined results for full FY17 of $20.3m (an increase of 399% on FY16 of $4.1m). This represents a material increase in the forecast numbers. Prior guidance for FY17 was given as $15.5m excluding BHA.
The Company is also pleased to advise that it anticipates remaining cash flow positive.
Growth in Revenue Generated from Existing Customers
BIG has been approaching existing customers over the past 12 months to offer them renewals and upgrades to new products and can now publish the consolidated results of this exercise.
- The Company has focussed resources on approaching bigger SMEs within the customer database and presenting higher value video products in order to realise the most efficient and effective outcome for the Company.
- Cash revenue for Q3 FY17 totalled $5.6m of which $1.01m was from existing customers. This compares with a total Company video cash revenue for the same period in the prior year Q3 FY16 of $1.03m or a notional revenue churn of only 3% from the same period in the prior year.
- For the past 12 months, cash revenue from existing customers was $2.65m compared with a total company video revenue over the corresponding prior year of $2.22m representing an increase in cash revenue of 19% (or a negative churn)
- The Company is also experiencing significant contract renewal rates from Australian Not for Profit organisations who are purchasing repeat Big Cares packages following completion of their initial 12 month contracts.
Strong pillar one revenue from video technology continues with robust customer retention levels and increased ARPU. BIG is continuing to invest in the focussed expansion of the sales resources and operations to meet local and international market demand. Commenting on the outlook for the business Richard Evertz says " As we see the demand for video grow and the BIG business model mature, it is extremely comforting to see good customer retention figures and subscribers who are spending increased amounts with us. We expect to remain cash flow positive and to exceed our previous guidance for FY17. Further, from the acquisition of BHA we now have a direct relationship with over 50,000 businesses and are expecting these strong trends to continue going forward".
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About Big Un Ltd
Big Un Ltd (ASX:BIG) is the parent company of Big Review TV Ltd. Big Review TV are innovative disruptors in the online video space delivering subscription based video technology products and services. The Company has operations across Australia and in New Zealand, the United Kingdom and the United States, Hong Kong, Singapore and Vancouver and was listed on the ASX in December 2014.
Big Un Ltd