Megastar Millionaire cost $10m to make, made $13k revenue
MSM’s idea to run a talent show via a mobile phone app doesn’t appear to be making much money.
The show generated about 3c per app download.
It cost $10 million to produce, according to MSM’s full year accounts.
The company (ASX:MSM) launched the Megastar Millionaire concept last year, a mobile-first talent show with a $1 million prize.
Late on Friday night it revealed the extent of its finances: a full year loss of $19 million, up from $13 million last year.
Revenue fell 51 per cent to $33,099.
Most of this came from interest earned.
In-app purchases did rise to $13,463 from $102 last year, which means the 435,000 app downloads yielded 3c each.
And it owes businesses that have supplied it with goods and services $2.5 million.
Investors torpedoed the stock by 18 per cent on Monday, sending it down to an all-time low of 0.9c.
They have $303,875 left in cash at the end of June, but secured $2.1 million of a larger capital raising in July to stay afloat.
MSM completed its first Millionaire show in December and said it showed a demand for online, mobile-first content.
But it was suspended in January and spent most of the second half not trading in order to finalise legal advice about their strategy for the year.
The company wants to expand into India, but said on Monday there’s been a delay in finalising that strategy as well.
“ The company is currently focused on cost reductions, evaluating options for Megastar V2 and completing the placement of shortfall under binding agreements as announced 5 July 2018,” it said.
It’s now also planning to make money by talent scouting and licensing the concept out, as it’s trying to do with the India venture which was originally supposed to pay at least $500,000 a year.
MSM is also still liable for payments from its past life as a miner called Minerals Corporation.
MSM completed a backdoor listing on to the ASX in 2016 but still has to pay $12,500 a quarter “until such time as the Queensland Department of Natural Resources and Mines grant the Mineral Development Licence”.