SOUTHEAST Asia’s largest digital entertainment service provider iflix has been forced to lay off a number of its workers in order to weather to endure the coronavirus impact, said its CEO Marc Barnett.

He did not disclose the number of employees who have been let go. The company has a total workforce of about 400.

The company, which is headquartered in Kuala Lumpur, is available in 13 countries in Asia, including Malaysia, Indonesia, the Philippines and Thailand.

“The industry is not immune to these unprecedented circumstances.

“Our decision to reduce the company’s headcount has come after careful consideration and in conjunction with other cost-cutting measures, to enable the company to endure this indefinite and uncertain period.

“We remain focused on driving the business through to breakeven in 2021 and these steps are part of ensuring we remain on that path and can navigate the current challenges,” Barnett told The Malaysian Insight.

He added that the company, which has been in operation since 2014, will do everything necessary to support the affected workers.

It is believed that more than 50 employees have been retrenched. iflix is also facing debt repayment issues ahead of a July deadline to complete a public listing.

In a letter to shareholders, Barnett reported that monthly active users have reached a record high of 21 million, up 42% since the start of the year. Iflix had also hit its revenue target for the first three months of 2020.

A company spokesman said iflix has extended free VIP passes to all users during the movement control period.

The pass offers unlimited access to all iflix content and features.

This has further reduced the company income.
 
Last July, iflix announced the finalisation of a new round of investment to drive growth ahead of the prospective IPO.

The successful funding round provides iflix with significant firepower to aggressively pursue growth strategies and further increase the active user base which surpassed 17 million in May 2019.

However according to financial information filed with the Australian Securities and Investments Commission in September 2019, iflix could be compelled to redeem just over US$47.5 million (RM206 million) of convertible loans if it is not listed by July 31.

DealStreetAsia in January reported a story, based on multiple industry sources, that the planned initial public offering in Australia had been deferred and that the company was seeking to raise about US$50 million from existing investors. – April 9, 2020.