Quickflix Loss Up 60%
Revenue slipped six percent to $18 million, but improved during the second half as the company chased customer growth.
Quickflix added more than 21,000 subscribers during the year, taking its total paying customer base to almost 123,000.
But the growth came at a cost as the company’s spending on marketing and new content almost doubled to $3.24 million.
Content-related costs were more than $1 million higher at $9.3 million, attributed to the increasing cost of streaming and content platforms.
Marketing costs increased 77% to $5.5 million as it sought to promote the on-demand IPTV service.
Nine Entertainment bought more than 91 million shares in Quickflix from US cable giant HBO during the year and the market has it that a merger could be on the cards.
The shares have been transferred to StreamCo, Nine’s new streaming joint venture with Fairfax.
Along with StreamCo, Quickflix faces an increasingly competitive local market with the likes of Foxtel which has launched its own service, called Presto, while Seven West Media is reportedly in talks to enter the sector.
US-based giant Netflix, which doesn’t officially operate in Australia, is estimated to have 200,000 Australian customers.
Yesterday, QFX announced it raised $1.6 million from a new share round, and will invest in content and marketing to accelerate its growth strategy.