Crowd Mobile finds its footing, with half-year revenues set to rocket 250pc
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Special Report: Global mobile entertainment and digital media specialist Crowd Mobile is ending the year on a high note, with its new Crowd Media division helping drive a massive jump in revenue.
The company (ASX: CM8) is forecasting first-half 2019 revenues of $1.25 million, a 250pc increase on the whole of the 2018 financial year for its recently launched Media division – around $40m in revenue across the entire business for the last year.
Company chief Domenic Carosa credits the boom to its new Crowd Media division, which includes digital influencer marketing agency Crowd.Agency and its Fortune 500-focused affiliate agency.
In a little over a year, the division has secured the thumbs up from major brands including L’Oreal, Nescafe, Nestle, European neo banks bunq and N26 and others looking to execute local influencer marketing companies around the world.
The company secured another win last month, announcing it is now one of just six Certified Partners for Snap Inc – the $12.1 billion owner of the gigantic social media platform Snapchat.
Mr Carosa explained that while the company encountered some unexpected headwinds in the 2018 financial year, he’s optimistic about the opportunities ahead.
“We are delighted with the progress of our Crowd Media division which is delivering growth and reinforcing our conviction in the profitability of social media marketing,” he said.
“The fact that we’ve built a business in less than 18 months that is already working with blue chip companies is very positive. We’ve developed close working relationships with a number of Fortune 100 companies and that’s a testament to the quality of our products.”
What’s next for Crowd Mobile?
With a slew of top customers in the books, Mr Carosa says the company is turning its attention to driving greater efficiencies across the business.
The company launched a share purchase plan earlier this month to raise up to $700,000, with all directors committing to apply for their maximum entitlements.
The funds will be used to provide extra working capital, strengthen the balance sheet and pay down debt.
Cost savings of around $2 million a year have also been identified, which Mr Carosa expects will be progressively realised in the 2019 financial year.
He was candid when updating investors on the Subscription and Q&A parts of the business – which fall under the company’s Mobile division.
“The start to the 2019 financial year has challenged us; we aren’t shying away from it,” he said.
“But the great news is we’re already starting to see some growth returning to the Q&A Division and our Subscription division continues to generate stable revenues and profits.”
“With the growth that we’re seeing in the Crowd Media division, which is where we are capturing growing demand, we’re confident about the coming months and years.”
Crowd Mobile is a Stockhead advertiser.