Books Revenue of $4.277 Million for FY 2015 Driven by SmartPay Platform in China
Sydney, Sep 1, 2015 AEST (ABN Newswire) - Mobile and online payments platform and logistics software provider SmartTrans Holdings Limited (
ASX:SMA) ('SmartTrans' or 'the Company') has today released its Appendix 4E - Preliminary Full Year Results for the financial year ended June 30 2015.
Highlights:
- Revenue of $4.277 million for FY 2015 represents increase of 82% on FY 2014 ($2.344 million)
- China revenue of $2.737 million for FY 2015 driven by ongoing growth and uptake of SmartPay platform
- Cash flow positive quarter in Q4 FY 2015 with record revenue of $1.397 million
- Transformational year for SMA has created solid platform for growth in FY 2016
- Company maintains focus on leveraging opportunities for SmartPay to drive revenue growth
SmartTrans is pleased to report that the Company earned revenue for the year of $4.277 million, which represents an increase of 82% on the previous year (FY 2014: $2.344 million) and which was largely driven by the considerable revenue growth achieved with the Company's SmartPay platform in China.
Whilst the Company has recorded a statutory loss before interest and tax of $1.653 million, this result represents a significant improvement from the previous year's loss of $4.376 million. SmartTrans is also greatly encouraged that in Q4 of financial year 2015, the Company enjoyed a cash flow positive quarter, with record revenue of $1.397 million booked for the quarter and once again primarily from the SmartPay platform ($1.206 million).
SmartTrans has achieved a number of milestones and had many highlights over financial year 2015, among them:
- Implementing a subscription billing model for the SmartPay platform, whereby customers pay a monthly fee for content, which has led to excellent retention rates and growing, recurring revenue streams
- Securing billing agreements with China Unicom and China Telecom (in addition to that with China Mobile), giving SMA reach to a combined 1.23 billion subscribers of all three major telcos in China
- Executing a contract with Entellect Ltd (now KNeoMedia Ltd) for exclusive distribution rights for this company's popular 'edutainment' games in China
- Securing in-App billing arrangements with a growing number of popular smartphone game developers in China, allowing consumers easy access and repeat purchases/upgrades
- Strengthening the Company's balance sheet through a $3 million strategic placement and more recently with a $5.5 million capital raising through the successful completion of a heavily over-subscribed Non-Renounceable Rights Issue
- Entered into agreement with and commenced revenue generation with Ta Kung Pao, China's oldest established and first online newspaper
- Establishing close working relationships with respected state-owned enterprises (SOEs) in China, including China International Travel Service (CITS)
- Launching an integrated Direct Carrier billing service with China Mobile, allowing subscribers to easily purchase games and content on their mobiles, initially in Guangdong and then rolled out into additional major provinces
- Adding Direct Carrier billing service with China Telecom (in addition to above), successfully launched in Hubei province and planned to soon expand into more provinces
- Expanding the Company's logistics business into China (contract executed July 2015) by securing an agreement with the subsidiary of China's largest car manufacturer for the provision of software and services
After a busy and transitional year in FY 2015, SmartTrans enters the new financial year well placed to capitalise on the platform it has now created with its two distinct business divisions of the SmartPay platform in China and the logistics business that it has now expanded into China.
SmartTrans Managing Director, Bryan Carr, commented: "Financial year 2015 has truly been a transformational one for SmartTrans and we have certainly achieved a lot. SmartTrans is now very well placed for strong growth."
"We have worked hard to control expenses and overheads during the year, and we expect that this lower cost base will help us in moving towards profitability in FY16. The fact that we have just achieved record revenue in a quarter and were cash flow positive in the quarter also reinforces this."
"I take this opportunity to reassure shareholders that in the context of the recent volatility in the equities markets in China, we have seen no noticeable effect on our business there and that billing and transaction rates remain strong with consumer sentiment still buoyant."
"Our key focus going forward will be to ramp up revenue growth even further by making sure that we capture each and every opportunity for SmartPay, and that we achieve the critical mass we want here in terms of user numbers, retention rates and recurring revenue streams."
"We have worked long and hard for several years to establish our presence in China and this hard work is now paying off in terms of the solid and ongoing revenue we are achieving with SmartPay. We now intend to further leverage our market position as the 'go to' Company for any mobile and online business that wishes to operate and bill customers in this large and lucrative market."
To view the release including Appendix 4E, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-SMA-732093.pdf
About SmartTrans Holdings Limited
SmartTrans Holdings Limited (ASX:SMA) is a leading Australian technology and software provider that has developed a mobile and online billing and payment platform for the China market The company has agreements in place with China Mobile, China Unicorn, China Telecom CMPay, UnionPay and Alipay. With the growing use of the smartphone as a billing device in China, the company is experiencing significant uptake of its technology in that market. SmartTrans has also developed cutting-edge proprietary logistics software which is used by some of Australia's leading blue-chip organisations who have long term contracts in place with the company. SmartTrans is assessing growth opportunities for its logistic offering in China to complement its mobile and online payments platform.
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