Quickflix doubles loss as rival SVOD services loom large

James McGrath
By James McGrath | 2 March 2015

Quickflix has blamed an accounting shift for a doubling of its net loss to $8.6 million.

Releasing its financial results to the Australian Securities Exchange today, the subscription video on demand (SVOD) and DVD/Blu-Ray mailing service said that its revenue was up 7% for the half year to the end of 2014, to $9.2 million.

This is a 104% jump from its loss in the previous corresponding period.

It blamed the larger-than-expected net loss on a $2.9 million impairment on the assets relating to its platform and content.

It said that it was forced into the impairment as its accounting measures surrounding the platform and content had forced Quickflix's hand.

Quickflix told investors that its underlying loss was $5.7 million, which was actually a 4% decrease on the previous half year.

However, the number of paying subscribers to Quickflix's service dropped by 5% in the half to 117,106, but this was up year on year by 15%. This means that it was unable to keep the momentum rolling as the likes of Stan, an improved Presto, and Netflix loomed large on the horizon.

Its new subscriber numbers were also down in the second half of the year by 6%, with its trial conversion also down 15% to 42.7%.

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