Australian-listed mobile entertainment and digital media company Crowd Mobile says it is continuing to shift its focus towards the growing social media marketing industry, as it released results projecting first half revenues of $1.25 million for FY19.
As announced to the market in August, Crowd Mobile (ASX:CM8) says it is currently undertaking an operational transition to focus on its core strength in social media marketing.
In its latest statement to the market, Crowd Mobile says the transition allows it to leverage synergies across all three of its divisions â Media, Subscription and Q&A â and gives it a clear positioning in a high growth area.
âWhen complete, the company will transition from being product centric to a platform company, focused on social media marketing predominately to millennials leveraging technology,”Â the company said in its results announcement.
âIn order to better reflect this focus, Crowd Mobile is seeking to change its name to Crowd Media Holdings Limited subject to shareholder approval at the companyâs AGM scheduled for 28 November.âÂ
Crowd Mobile is projecting the Crowd Media division to more than double its FY18 revenue in the first half of FY19.
In FY18, Crowd Media revenues were $0.5 million from a zero base and the company estimates revenue for first six months of FY19 will be circa $1.25 million (up 250%).
And the company notes that Crowd Media continues to attract blue chip partners including Nestle and most recently Snap.
The reports says the media division is accelerating its growth in two areas â the influencer marketing agency that develops and executes campaigns for international brands on a fee for service basis and affiliate division that sells products for third parties using its expertise in digital marketing to millennials
And Crowd Media reports that the Q&A division encountered some headwinds and reported softer than expected revenues and profits in the first 4 months of the year â but the expectation is that the business will improve over the coming six months due to its cyclical nature.
âThe Q&A division continues to test product pivots which leverage its proprietary Artificial Intelligence (AI) technology). AI is now responsible for answering more than 50% of all questions which will help improve operating margins,â the report notes.
âAlthough we encountered some head winds resulting in lower than expected KPIs in the first half, recent initiatives such as cost reductions and a range of new revenue initiatives are expected to start bearing positive results in the medium term,â said Crowd Mobile chief executive Domenic Carosa.
âWe are also delighted with the progress of our Crowd Media division which is delivering growth and reinforcing our conviction in social media marketing and our rebrand to Crowd Media Holdings Ltd.â
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