Quickflix stays in trading halt as company blames Netflix for falling subscriber numbers

QuickflixStreaming service Quickflix has requested that the ASX allow it to remain in a trading halt until Wednesday as it continues negotiations with an unnamed “international” player about a potential “acquisition”.

The trading halt comes as the company’s latest quarterly report (ASX: QFX), put out late on Friday afternoon, shows the number of Quickflix subscribers declining on both a quarterly and year-on-year basis despite the recent explosion in consumer awareness and sign up to rival services.

Quickflix blamed “pent-up demand for Netflix in particular” for causing a sharp decline in customers early in the quarter, but more concerning for the company is its cash on hand which as of June 30 was $913,000, following its recent capital raising which brought in $775,000.

That suggests the company will require another financial investment to remain viable as the statement shows Quickflix had an operating loss of $1.096m this quarter, up from the $850,000 it lost last quarter, as revenue receipts declined 15 per cent to $4.2m.

Subscribe to keep reading

Join Mumbrella Pro to access the Mumbrella archive and read our premium analysis of everything under the media and marketing umbrella.

Subscribe

Get the latest media and marketing industry news (and views) direct to your inbox.

Sign up to the free Mumbrella newsletter now.

"*" indicates required fields

 

SUBSCRIBE

Sign up to our free daily update to get the latest in media and marketing.