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Quarterly Update

(& Appendix 4C) December 2013

Quickflix movie and TV streaming launched on Sony PlayStation 4 in December 2013.

Quickflix Quarterly Report

Quarterly Update

31 DECEMBER 2013

Quickflix continued its growth trajectory in the December quarter, adding over 10,000 new customers and experiencing strong demand for its streaming service. Total active customers increased by 10 per cent to 120,800 in the quarter including
18,552 trialists. The addition of new customers was achieved through a number of promotional channels including the
Company's comprehensive network of consumer electronic device partners.
The number of paying customers grew by 4 per cent during the quarter to 102,248. The number of paying customers at the date of this report has continued to increase as trialists convert and stay with the service.
Revenue in the December quarter was $4.8 million, 5 per cent lower than the previous quarter. In the first weeks of the current quarter revenue is tracking higher on the larger base of paying customers.
Net operating and investing cash outflow for the quarter was $0.93 million, which included the receipt of a $0.9 million R&D tax rebate. During the quarter the Company completed equity capital raisings totalling $5.5 million which included the conversion of outstanding debt into equity. The funds raised have enabled increased expenditure on marketing and content to drive growth.

Quickflix cash flow per quarter (End of Quarter)

$ 000s

10,000

8,000

6,000

4,000

2,000

0

-2,000

-4,000

-6,000

Jun-12

Dec-12

Mar-12

Jun-12 Sep-13

Dec-13

Receipts

from customers

Net cash (used in)

operating activities

Net cash (used in)

investing activities

Net cash from operating

and investing activities

*Operating cash flows have been normalised to exclude the receipt of $0.9 million R&D tax rebate in December-13 quarter and $1.6 million R&D

tax rebate in the December-12 quarter.

Key movements for the December quarter were: