Asiasoft Corporation reports fiscal year 2014 results with slow down in performance while the Group extend its business operations into mobile gaming and platform to seek a profitable 2015

BackMar 03, 2015

3 March 2015 – Mr. Pramoth Sudjitporn CEO of Asiasoft Corporation Public Company Limited ("Asiasoft" or "The Group") announced today that The Group incurred a loss of 391 Million Baht, compared to a profit of 52 Million Baht in 2013. The revenue for 2014 reported 1,262Million Baht compared to 1,713 million Baht for 2013, showing a decrease in revenue of 451 Million baht or 26%.

Asiasoft’s first-ever annual financial loss was mainly due to the provision for impairment for PC games licenses and related costs amounting 257 Mio. Baht, as the company focuses its resources into the growing mobile games segment. On top of the games licenses impairment provision and write off, the Group made a impairment provision for the Goodwill on Investment in subsidiary companies amounting to 106 Mio. Baht.

Despite the Group’s weak performance in 2014, Asiasoft’s Thailand operation is still generating a profit but with slower growth. Further, the Group generated 181 Million Baht of operating cash flows during the year.

The 2014 results reflected a slow down in PC gaming revenue, for both domestic and overseas market. This is primarily due to increasing gamers switching to mobile games or spending more game time in mobile games. The shifting trend is impacting the entire industry and all Asiasoft entities in the region are affected with no exception. With such rapid changing gamers behavior, Asiasoft’s strategy is to gear towards a full service Mobile Operation Platform including Mobile Games, Mobile Services and Applications.

In 2015, Asiasoft is targeting to launch more than 8 Mobile Games and is preparing to offer to the market a new Mobile Social Platform within Q2’15. The Group estimated to grow the revenue share from mobile segment to more than 30% of total revenue and set revenue target for 2015 at minimum 30% growth over 2014.

Mr. Pramoth Sudjitporn added. “With the successful cost reduction exercise and the strategic reorganization of the Asiasoft Group, we have optimise the operating expenses and game inventories. We are able to start 2015 without the legacy baggage to focus on our Mobile strategy to recapture our market share. We are optimistic to see the Group turning around in 2015 and extending our business beyond online gaming and we like to thank the shareholders and various stakeholders for the continuous support to the Group.