MOL Global, Inc. Announces Fourth Quarter 2015 Unaudited Financial Results
|MOL Global, Inc. Announces Fourth Quarter 2015 Unaudited Financial Results|
|KUALA LUMPUR, Malaysia, March 28, 2016 (GLOBE NEWSWIRE) — MOL Global, Inc. (Nasdaq:MOLG) (“MOL” or the “Company”), a leading e-payment enabler for online goods and services in emerging and developed markets, today announced its unaudited financial results for the fourth quarter of 2015.
Fourth Quarter 2015 Highlights
Mr. Preecha Praipattarakul, CEO of MOL, stated, “We are pleased to report solid top-line growth of 19.2% year over year, driven by continued revenue and volume growth in our core MOLPoints, MOLReloads, and MOLPay business lines. The MOLPoints business has achieved revenue growth as we continue to prioritise our efforts to enhance our footprint in the mobile space and expand our physical distribution network regionally. The MOLReloads business continue to reap the benefits of our extensive physical channels, merchant acquisition strategies and expanding our services in bill payments. MOLPay has also grown rapidly in line with the growth in ecommerce. Revenues from MMOG.asia declined compared to the fourth quarter of 2014 when revenue included one-off proceeds of our sale of licensing rights for the game, Stallion Race, in the Middle East and Brazil markets. Excluding the one-off event, MMOG.asia revenue declined slightly by 4.9% due to the higher decline in volumes of our existing PC games compared to the increasing volumes from our mobile games. During the fourth quarter, we continue to focus on our mobile content for both our MOLPoints and MMOG.asia businesses, which has seen a year-on-year increase in revenue. While we grew our overall gross profitability this past quarter as compared to the fourth quarter of 2014, we did face slight margin pressures and have responded by reigning in our operating expenditures (excluding non cash items). We also believe that with our efforts to put the consolidated US Class Action suit against MOL behind us, we would be able to focus our attention on delivering profitable growth going forward.”
Mr. Ramesh Pathmanathan, Group Chief Financial Officer of MOL, stated, “In this quarter, our growth has been fairly robust in all the revenue segments apart from MMOG.asia. Management focus has been to drive growth in segments and markets that offer the greatest opportunity to maximize shareholders value. We continue to see growth in our top-line driven primarily by our MOLPoints, MOLReloads and MOLPay businesses. However, we see slight margin compression mainly due to a shift in revenue mix of the respective segments. The MOLPoints carrier billing business especially in Turkey and the Middle East and MOLPay as a whole, are lower margin business compared with our other businesses and continue to grow at a faster rate and contribute more to our overall revenues compared with our other businesses. Similarly, MOLReloads bill payment services component earns lower margin that the other MOLReloads segment. MMOG.asia revenue segment continues to face some challenges in delivering sustained results but with their strong fiscal discipline, I believe that this segment should continue to contribute to the company’s profitability.”
Fourth Quarter 2015 Financial Results
DIRECT COST AND OTHER ANCILLARY EXPENSES
OPERATING INCOME/(LOSS) AND EXPENSES
As a result of the above, our loss from operations in the fourth quarter of 2015 was MYR44.2 million (US$10.3 million) as compared to a loss from operations of MYR36.1 million in the prior year period.
LOSS FOR THE PERIOD
Conference Call Information
The replay will be accessible through April 4, 2016 by dialing the following numbers:
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.mol.com/.
About MOL Global, Inc.
MOL Global, Inc. (NASDAQ:MOLG) is a leading e-payment enabler for online goods and services in emerging and developed markets. MOL operates a payments platform that connects consumers with digital content providers, telecommunications service providers and online merchants by providing a vast network of distribution channels that accepts cash and online payment methods. Its physical distribution network comprises more than 970,000 locations in 11 countries across 4 continents. The Company also has mobile payment channels, electronic distribution channels that accept major credit cards and online banking from more than 100 banks.
For more information, please visit ir.mol.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “target,” “going forward,” “outlook” and similar statements. Among other things, our strategic and operational plans, contain forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the U.S. Securities and Exchange Commission, in our annual report to shareholders, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, including development of new products and services; our ability to attract and retain users and customers; competition in each of the markets in which we operate; changes in our volumes, revenues and certain cost or expense items as a percentage of our revenues; and the expected growth of the e-payment market and the number of e-payment users. Further information regarding these and other risks is included in our filings with the Securities and Exchange Commission. We do not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and we undertake no duty to update such information, except as required under applicable law.
This press release contains translations of certain Ringgit amounts into U.S. dollars solely for the convenience of readers. Unless otherwise noted, all translations from Ringgit to U.S. dollars, in this press release, were made at a rate of MYR4.2900 to US$1.00, the noon buying rate in effect on December 31, 2015 in the City of New York for cable transfers in Ringgit per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York.
About Non-IFRS Financial Measures
To supplement our consolidated financial results presented in accordance with International Financial Reporting Standards (“IFRS”), we present adjusted EBITDA, which is a non-IFRS financial measure, and related ratios. You should not consider adjusted EBITDA as a substitute for or superior to net profit prepared in accordance with IFRS. Furthermore, because adjusted EBITDA is not determined in accordance with IFRS, it is susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.
We present adjusted EBITDA as a supplemental performance measure because we believe that it facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by the non-cash write-down resulting from our acquisition of subsidiaries and intangible assets (affecting relative impairment of goodwill and intangible assets), age and book depreciation of fixed and intangible assets (affecting relative depreciation and amortization expenses), changes in foreign exchange rates that impact financial assets and liabilities denominated in currencies other than our functional currency (affecting unrealized gain/(loss) on foreign exchange and realized gain/(loss) on foreign exchange), variations in capital structures (affecting interest income and interest expenses), impairment loss on inventories and trade and other receivables, share of results of operation of associates, loss on disposal and write-down of property, plant and equipment, acquisition related costs, and tax positions (affecting income tax expenses) (such as the impact on periods or companies of changes in effective tax rates), professional fees, IPO expenses and class action legal fees which are non-recurring and various non-recurring charges. In addition, adjusted EBITDA excludes reversal for impairment on inventories and trade receivables, inventory and intangible assets written off and the non-cash impact employee share based compensation and changes in the fair value of derivative, that, in each case, we do not believe reflect the underlying performance of our business. Some limitations of adjusted EBITDA are that: (i) adjusted EBITDA does not reflect income tax payments that may represent a reduction in cash available to us; (ii) adjusted EBITDA does not include other income, other expense and foreign exchange gains and losses; and (iii) adjusted EBITDA excludes depreciation and amortization and although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future.
The following table reconciles adjusted EBITDA to profit for the period for the three months ended December 31, 2014 and 2015:
(2) Total direct cost and other ancillary expenses include others segment.
(3) Total gross profit include others segment.
Investor Relations Contact MOL Global, Inc. Charles Tan Email: IR@mol.com
MOL Global, Inc.