CEO's Address - 2017 AGM
"I think you'll all agree that it has been an exceptionally exciting and inspirational 12 months for BIG. We have been executing on our business strategy, and are beginning to see our unique business model mature and become a fully functional social media video ecosystem. Integral to this, our diligent management team has been laser focused on delivering on our growth strategy and fully leveraging our first to market advantage. To this end, we have been mindful of the fine balance required to invest in the growth of the company without raising capital.
Our strategy to issue stock for acquisitions and essential consultancy services over the last 12 months has been carefully calculated to minimise dilution to shareholders and to ensure that the recipients of the stock are fully engaged and committed to the success of the Company. Where the share price has risen dramatically during these negotiations we have of course reevaluated the situation and in some cases withdrawn from negotiations if we felt them to be no longer beneficial to shareholders.
I am very pleased to inform you that I feel that the Company will continue to achieve a strong cash surplus during 2018 and this will be re-invested into the growth of the Company.
I would now like to give you a brief overview of some of the highlights of 2017:
1) The acquisition of both BHA (Beauty,Hair, Aethetics) and FAB (Food & Beverage) publishing verticals from The Intermedia Group where completed earlier this year. This provided us with an additional 65,000 Australian SMEs on BIGs database, and guaranteed advertising revenue, making us the dominant player in B2B communication in these verticals. More recently, we announced the proposed acquisition of US company Tipsly. We negotiated this in May of this year, prior to Tipsly's imminent launch in the US, at a point where they already had a database of 100,000 SME's in the alcohol and bar space and guaranteed advertising revenue. The Tipsly app has already undergone beta testing and is currently being incorporated into our BIG Review TV app. We feel that the timing and format of this acquisition gives the Company a huge IP boost and facilitates speed to market in the US, significant market penetration in a key vertical and the solidification of or three pillar business model.
Our growth strategy is to partner with specialists and aggregators in key vertical markets to give immediate market access allowing us to leverage first mover advantage and dominate the space.
2) The Company has continued to implement our growth strategy in Australia throughout the year by partnering with key players in other verticals. We have announced aggregator partnerships with GoFundraise in the NFP sector and HotCopper in the corporate sector that will boost our market penetration in these vertical markets.
Most of our revenue to date is generated from pillar one. There is huge global demand for video. To meet this demand and ensure that we stay ahead of the video curve, we have expanded our internal telesales team from less than 20 seats to 60 seats globally over the last year. We recently opened a new sales office in Queensland and anticipate building to 100 seats by the end of March quarter 2018.
3) Lastly I would like to highlight the growth in pillar two of our business model this year. We now have a video library of over 150TB from which we are producing short, online TV shows. These are incredibly appealing to our SMEs in pillar one and have helped the increased ARPU in SME sales. In addition, they are in demand from third party broadcasters and advertisers and sponsors. This year we announced sponsorship deals with British Airways, Marriot Hotel Group, Sky News and are about to populate our own Apple TV channel with entertainment style content aimed at consumers. With the demise of traditional TV consumption, the potential growth in this space is incredibly exciting and early indicators are that the demand for our short form native content from third party platforms, broadcasters and advertisers is significant and will crystalise over 2018.
In conclusion, I would like to thank every single BIG stakeholder from our incredibly passionate and talented staff to the executive and management team and our loyal and passionate shareholders and supporters. We owe our success to this incredible spirit of collaboration and support and look forward to another BIG and amazing year ahead".
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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