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.
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