MySQUAR Limited (LON:MYSQ) expects revenues in the second half of its financial year to pick up as it progresses towards the cash-flow break-even point.
In the next 12 months, the Myanmar-language social media, entertainments and payments platform operator, will concentrate its resources on developing its existing products and businesses, as it seeks to be the market leader of mobile-based value-added services and products in Myanmar.
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Product launches lay groundwork for future revenue growth
Results for the six months to the end of 2016 showed the company’s revenue was steady after it launched various mobile games, including MyFish, Hawk Hero and Chakra Ninja.
The group also launched the location-based consumer-to-consumer mobile marketplace application Fastsell during the reporting period and a voice over internet protocol (VoIP) app called CallHome.
Revenue clocked in at US$340,716, compared to US$350,000 the year before.
The loss before tax widened to US$1.58mln from US$1.31mln the previous year.
The company, which ended the reporting period with US$59,386 in cash, has implemented a cost-savings programme with a particular focus on the payroll and reducing money spent on third-party services such as hosting and domain services.
Future cash flow
“Regarding future cash flow, the group expects to continue to generate revenue from the gaming business, payment application development services, advertising and from new products such as the paid content in MyChat, transaction fees from the mobile marketplace Fastsell and the CallHome VoIP services that are expected to begin to monetise in April 2017 in conjunction with the integration with larger payment service providers (such as Telenor),” the company told investors.
“We therefore forecast our operating cash flow will improve over time as our revenue stream increases across the businesses,” it added.
The shares fell 0.27p to 1.18p on the results.