MySQUAR, the Myanmar-language social media, entertainment and payments platform whose principal activity is to design, develop and commercialise Myanmar-focused internet-based mobile applications, is pleased to announce an update in relation to its gaming business and in particular that it expects a major new game, ChakraNinja, to be complete for testing by 5 December 2016 and ready for official release by Mid-December 2016.
ChakraNinja is based on Naruto, one of the most successful Japanese manga comic characters of all time. Naruto, an adolescent ninja, is already a highly popular character in Myanmar via TV, films and books. The new freemium game will work on both Android and IOS devices. ChakraNinja will benefit from the existing user base of other games and of MyChat, the chat and social networking application of MySQUAR.
To accelerate the gaming business, the Company expects to soft-launch a gaming platform that is initially expected to include 4 or 5 casual games by mid-January 2017. (Casual games can be played for a short time; hardcore games, such as ChakraNinja, tend to require at least 30 minutes of attention for effective usage.) The strategy of the gaming platform is to bundle games and then automatically add new games so that users, who have downloaded the gaming platform, will have all the games in one application. By distributing various games via the same platform, the Company will save considerable marketing expenses, as well as increasing user retention and expected monetisation.
The profit margin of the gaming business is also expected to increase, dependent on revenue levels (current gross margins of 44% are expected to improve by at least 5%). The Company has agreed a new revenue share structure, effective from November 2016, with the key payment service provider MecTel, the state-backed mobile phone operator.
In January 2017, MySQUAR plans to release another hardcore game.
The gaming business continues to perform well with average daily revenue from the Company's existing titles of USD2,500 - USD3,000 during the month of October and the first 20 days of November. In addition to the new games and initiatives noted above the Company also intends to release further functionality and add-ons for its existing games in the next couple of weeks which is also expected to add to run rate revenue.
Fastsell, the mobile marketplace app, (initially targeting release by the end of November) is expected to be soft-launched on 5 December 2016, immediately followed by a direct marketing campaign aimed at retailers who want to list their products for sale. As announced on 30 September 2016, Fastsell - a marketing tool already established in Vietnam which is now targeting Myanmar through a new application - allows sellers to list their products while buyers can use the application to identify potential purchases, negotiate prices and identify geographic locations. Monetisation comes from advertising, subscription and handling fees. Under a perpetual agreement, MySQUAR's share of revenues with the developer Fastsell Company Limited will be 60%.
Eric Schaer, CEO of MySQUAR, said: "Recent months have been extremely busy at MySQUAR as we pull together all the opportunities presented to us. After its highly encouraging launch, the gaming business is now entering a new phase of growth and monetisation and we are looking forward to updating shareholders as the business continues to make progress."
"The introduction of Fastsell is not just an innovation for MySQUAR but for all of Myanmar, as access to goods nationwide and the means to make transactions quickly and simply will become a reality. This will be an important part of Myanmar's commercial revolution, demonstrating the tangible benefits of the political and economic changes which have swept the country recently."