HotCopper iPhone app available for immediate download from the Apple iTunes Store
App release is a significant growth milestone for HotCopper, with strong uptake anticipated by the site's 250,000 members
Global trading platform, IG, has partnered with HotCopper to sponsor the app over a 12-month period
HotCopper Holdings Limited (ASX: HOT) is pleased to inform the market of the first release of its iOS app, offering users an enhanced experience when accessing hotcopper.com.au on iPhone.
The public will be able to download the App for free from the iTunes Store, with the option of either logging in to their HotCopper account or becoming a member to access content.
The App incorporates the site’s most commonly used functions – including the ability to view the most discussed stocks, create a custom watchlist and get the latest company updates – as well as new features like the recently introduced Corporate Spotlight for ASX-listed companies.
As announced to the market on the 23rd of December 2016, HotCopper has executed a material, 12-month sponsorship deal for the iOS App. The board are pleased to announce that this Agreement was reached with global trading platform, IG.
The Agreement will bring in an immediate revenue stream, equal in the first 12 months to approximately 5% of HotCopper's annual revenue, with significant potential for the app to generate further cash flow.
The Product - An effective and targeted investor relations channel
Corporate Spotlight is HotCopper's new, direct-to-market channel for ASX-listed companies to engage with their most-interested investors and boost their investor relations efficiency. As well as providing valuable insight into performance analytics, the Corporate Spotlight offers ASX-listed companies the opportunity to showcase investment highlights and connect with their most engaged investors.
The Engagement Rationale - Investors have moved online
Australians are increasingly applying a 'do-it-yourself' approach to investing, with 58% of retail investors trading through online brokers such as CommSec or E*Trade, and a growing number of SMSFs (577,000+) managing over $620 billion in assets. A large portion of these investors use HotCopper when researching and making investment decisions, and Corporate Spotlight will allow companies to reach the investors who are most interested in their investment proposition.
Update on Corporate Spotlight Sales - April 2017
The Company has already seen significant interest in the product since launch, which has now translated into sales results. As of mid-April 2017, the Company had obtained formal commitments for over $120,000 in subscription revenue. In April 2017. the Company appointed two additional sales staff with significant industry experience and expertise to drive the adoption of the Corporate Spotlight product within the marketplace.
30 June 2017: Q4 Results
Q4 sales revenue of $0.99 million
Unaudited full year FY17 sales revenue of $3.75 million, 39% ahead of prospectus forecasts
Strong cash position, with $2.59 million cash on hand
Historically Profitable Company with Strong Cash Flow
HotCopper's revenue has traditionally been generated through commercial and corporate advertising including display advertising on the site and targeted email campaigns. The Company grew its revenue to $2.75 million in FY16, with a profit before tax of $873,963. At 30 June 2017, HOT reported unaudited sales revenue of $3.75 million, convincingly ahead of its IPO prospectus forecasts. Additionally, the Company reported positive operating cash flow of $0.24 million in Q4.
On-Market Share Buy-Back
On the 18th of October 2016, HOT announced its intention to commence a share buy-back of up to 10% of its issued share capital over the next twelve months to be funded from existing cash reserves and operating cash flow. The Company did not purchase any shares under the buy-back in Q4 FY17. Investors are advised to refer to the Company's most recent Appendix 3E for updates on the share buy-back.
Alec Pismiris Non-Executive Chairman
Alec has over 30 years’ experience in the securities, finance and mining industries, having served as a director and company secretary of various ASX listed companies as well as many unlisted public and private companies. Mr Pismiris holds a Bachelor of Commerce degree from the University of Western Australia, is a member of the Australian Institute of Company Directors and is an associate of the Institute of Chartered Secretaries and Administrators.
Colin Chenu Non-Executive Director
Colin has 30 years’ experience in private legal practice, during which he has advised and represented clients on a diverse range of legal areas in both litigious and non-litigious work, including corporations, trade practices, contracts, equity and trusts. He has extensive experience in defamation law and reputational torts and was recommended in Doyles’ List of Leading Commercial Litigation and Dispute Resolution Lawyers in 2016. Colin is currently a director and part owner of prominent Perth-based corporate and commercial law practice, Bennett + Co.
Gavin Argyle Non-Executive Director
Gavin is an experienced senior executive, with over 30 years’ experience in Australian capital markets. In 2006 he co-founded Capital Investment Partners, a Perth-based investment bank providing capital raising and corporate advisory services to small and mid-capitalised ASX-listed companies. He has been Managing Director of Capital Investment Partners since 2008. Gavin holds a Bachelor of Commerce from the University of Western Australia and a Masters of Business Administration from The Wharton School at the University of Pennsylvania.