This outfit creates games and gaming technology for mobile titles, with its Gaming 360 platform offering real-time multiplayer social media experiences for users across multiple mobile operating systems.
The company’s technology has already been utilized by outfits such as Vodafone and Glance, with the former having announced a partnership with Maxamtech in September. Additionally, the company has worked with entertainment giants Disney and Sony.
With QYOU Media having recently launched its free ad-supported QPLAY app, which allows users to tune into the company’s five different TV channels through smartphones or smart TVs, the acquisition of Maxamtech represents a further move into the direct-to-consumer space.
With data from Statista indicating there are 175 million mobile gamers in India, QYOU Media will be hoping the acquisition can create new opportunities for revenue generation. Maxamtech’s Gaming 360 offering already allows for revenue generation through game sales and subscription offerings
QYOU Media CEO and Co-Founder Curt Marvis, commented:
“We originally met the Maxamtech founders over a year ago. Right away we knew there could be a powerful combination of their technology and gaming know-how with our ability to reach young audiences on a mass scale that has now surpassed 125 million weekly viewers.
“As we push forward into 2023 to create greater opportunities to leverage our audience reach with new products for monetization and interactivity, it was a natural fit to bring this into our business more directly.”
QYOU’s Indian Expansion
The new acquisition is the latest in several moves by QYOU Media to target the young Indian market. Through its The Q India brand, the company now has five entertainment channels available to Indian consumers through television networks, video-on-demand and over-the-top platforms, mobile phones, smart TV’s and app-based platforms.
These include flagship channel The Q, which was the fastest growing Indian television channel in 2021, and recently launched gaming channel QGame-X, which started broadcasting in September.
Content for The Q India’s channels is constructed quickly and cheaply due to the company’s business model. This sees QYOU Media build shows out of pre-existing content from popular Indian social media stars, with the business aiming to capitalize on these influencers’ pre-built audiences.
Through its channels, QYOU Media is aiming to target the burgeoning young Indian market. With a population of 1.4 billion people which is dominated by increasingly tech-savvy young people, QYOU Media hopes that an offering which prioritizes working with the coolest and most popular social media influencers will create an opportunity for strong growth.
QYOU Stock Financials
The growth of QYOU Media’s offering in India has catalyzed rapid revenue growth for the company. Its most recent earnings update, which covered the three months ended 30 June 2022, saw the company return record quarterly revenues of CA$6.9m, which represented year-on-year growth of 163%.
Adjusted EBITDA loss also saw an improvement in the period, with a 33% reduction in loss. Net loss did widen by 7%, but QYOU Media attributed this to the launch of new channels and programming as the business rapidly expands its entertainment footprint.
The company expects that the new channels launched over recent quarters will push its revenue to further record-breaking levels across the third and fourth quarters.
Prior to this new deal, the company was reliant on advertising for its revenue, but the purchase of a majority stake in Maxamtech will allow QYOU Media to diversify by using gaming as a means of monetization.
The company says it will also use games to keep its already sizable audience more engaged and some synergies can easily be seen between a gaming platform and its recently launched QGame-X entertainment channel.
It’s not the first time the company has aimed to enhance its offering with a new acquisition.
June 2021 saw the company acquire Indian data-driven influencer marketing specialists Chtrbox.
This addition has led to the launch of BharatBox, a platform designed to help advertisers reach audiences in smaller Indian cities, and ChtrSocial, a new division intended to help brands create their own micro-videos and personalized brand storytelling for social media audiences.