Moko Social Media : Unaudited Full Year Results

SYDNEY, 31 August 2016 - MOKO Social Media Limited (MOKO) today lodged its unaudited results for year ending 30 June 2016, which reflected the strategic decision taken in September 2015 to focus on the US student market, preserve cash flow and exit other business categories.

MOKO is now poised to focus on the next stage of revenue generation, having established a strong foothold in US colleges and schools through its REC*IT product suite.

CEO Mr Shripal Shah, said 'REC*IT achieved significant growth in user acquisition and engagement following the portfolio realignment.'

'REC*IT has now had more than 752,000 first launches ('user acquisition'), with more than 480,000 first launches in the 2016 US academic year, an increase of 114%, and an average of 9.87 screen views per session ('engagement'), up 32%.'

Other highlights included

• MOKO increased its exposure to more than half of the US college student population, with a further 125 colleges added in the six months to 30 June;
• REC*IT's first marketing partnership with a major US brand was executed; and
• Development of a new app commenced, REC*IT Plus, a 'white label' subscription product targeted at recreation centre administrators, to help them manage recreational facilities and programs.

The net loss after tax from continuing operations of $20 million increased by $1.07m or 6% against the prior year's result of $19 million.

Total expenses decreased by 3% to $21.2m, resulting from reductions in marketing and employee benefit expenses, share based payments and other operating overhead.

Net cash used in operations for the year ended 30 June 2016 was $14.3m compared with $18.2m in 2015.

MOKO Chairman Greg McCann said MOKO is undertaking a review of strategic options for the future of the company and has appointed District Capital Partners to advise on alternatives and assist with this process.

'We are reviewing all options and proposals to enhance shareholder value and enable us to execute our strategy and leverage the significant foothold we have developed in the lucrative college and high school markets' he said.

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