Quickflix Losses Have Blown Out To More Than $10 Million

Kevin Spacey in House of Cards

Losses by Quickflix jumped 58% to $10.15 million for the full year to June 30 as the streaming media and DVD group spent more to gain new customers and to enhance content.

Revenue was down 6% to 18 million, after a soft first half.

Quickflix, a local Australian version of Netflix, faces increasing competition from Foxtel’s Presto services and from major media groups moving into streaming media such as as the $100 million StreamCo joint venture announced by Nine and Fairfax Media.

The second half of the year improved for Quickfix with revenue of $9.4 million, 9% higher than the first half, reflecting the return to paying customer growth.

Quickflix says its total number of customers increased by 27% to 135,690 and paying customers up 21% to 122,862.

Operating costs before customer acquisition reduced by 2% to $23.2 million.

Increases in the cost of streaming content and the platform were offset by lower DVD content expenditure and savings in operations.

Marketing and free trial service costs increased by 77% to $5.5 million to drive customer growth.

The company has cash in the bank of $2.4 million.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.