MySquar resumes rally, up 7 pc after announcing strong revenue growth

MySquar (LON:MYSQ) resumed its rally today, trading up 7 percent two days after announcing strong revenue growth at the beginning of May.

MySquar is introducing technologies in Myanmar-language that have never been used before on such a scale. MySquar’s core products are gaming and social apps designed specifically for use in Myanmar.

The group’s first app was ‘MySocial’, which has since been discontinued but provided the foundation of future apps such as ‘MyChat’, ‘Fastsell’ and ‘CallHome’. Many of the apps have striking a resemblance to offerings from Facebook and eBay but delivered in Myanmar-language.

Games are proving popular and are one of MySquar’s main revenue streams, alongside MyChat’s premium content. The company have also received a boost in revenue after securing an integration with one of Myanmars leading telecoms companies.

Since its launch in 2013 the group has experienced significant growth having posted a jump in daily revenue from $3,900 a day in April to $5,000 in the first week of May.

The company have suggested growth into India and Pakistan and the board are upbeat about future prospects.

“We are pleased with the daily revenue growth demonstrated in May so far and anticipate healthy future revenue growth given the multiple revenue streams from existing products as they gain in popularity over time in conjunction with the release of new products and new product features in the pipeline,” said CEO Eric Schaer.

Mysquar has conducted a number of capital raisings in recent months including a £2 million placing in April at 0.85 pence per share.

The company has a market cap of £18.9 million and at current daily sales levels would produce $1.8 million revenue this year. Guidance on margins are thin on the ground but one would hope they are robust and sales continue to rocket, in order to support the current valuation.

Shares in Mysquar (LON:MYQS)were up 7.5 percent to 3.90p at 10:35am in London.