Dear Shareholders,
As announced in the Chairman’s Annual Review on September 30th 2015, we have made a strategic decision to focus our resources on our core student division assets and reduce cash burn from other business categories. This decision was made following feedback from U.S. investors and advisors and the positive and promising early results from REC*IT 2.0 and SPEAKIESY. The rationale for the strategic focus on students is that historically, the U.S. college student user base has been one of the most difficult demographics to access in any significant numbers due to its fragmented nature, and our exclusive agreements with IMLeagues and BigTeams grant us unprecedented and unparalleled access to students at over 1,000 U.S. colleges and 4,000 high schools. We believe that our student products, being REC*IT 2.0, SPEAKIESY, REC*IT FITNESS and BigTeams powered by REC*IT, have the potential to deeply penetrate the student market and result in MOKO being highly attractive to advertisers and future potential strategic partners. By concentrating our resources on the student market, we believe we will better optimize our already dominant market share.
The September quarter has seen users to our flagship app, REC*IT 2.0, rapidly accelerate and I am delighted to report that at time of writing this review, REC*IT has exceeded over 410,000 total app installs. We anticipate that with this continued trajectory, we will attain our 500,000 target by calendar year end in December 2015, laying the foundations for strong growth in the 2016 calendar year.
SPEAKIESY’s initial launch has been well received and student feedback has been exceptional. We have now adopted a more focused launch approach, where we are actively engaging and activating campuses one at a time with our on-campus Brand Ambassadors, to build brand and equity value at targeted colleges prior to a wider activation program. BigTeams powered by REC*IT and REC*IT FITNESS app developments are near completion, with launch expected in late November 2015.
Download full Chairman’s Quarterly Review here.
Posted on October 30, 2015 in ASX Announcements, Financial Reports, News
