Meet Group jumps almost 16% after rollout of Battles

Shares of mobile social entertainment application operator The Meet Group (MEET) are higher in afternoon trading after the company announced it has begun the rollout of its new Battles feature on its MeetMe and Skout apps, and provided an update on its live-streaming video and advertising results. BATTLES FEATURE: Battles brings together two livestreamers and their audiences for a live competition, whether it be for best dancer, musician, or comedian, among other categories. Each battle lasts just a few minutes, and the winner is the streamer who earns more diamonds by receiving gifts from viewers during the battle period. “Our mission is to build the best place to meet new people,” said Geoff Cook, CEO of The Meet Group. “We are always seeking novel ways to deliver meaningful connections. We believe Battles will enable connection around talent. We believe it also has the potential to incent viewers to give more gifts to streamers, which is primarily how we monetize video today. We believe the competitive dynamic will strengthen the relationships between streamers and their fans. Battles, sometimes referred to as PK in Asian livestreaming apps such as MOMO and YY, appears to be a mainstay of monetization for those apps, contributing both to engagement and to monetization, and we believe it is a natural fit with our community as well.” CEO SEES STRONG AD QUARTER: “We believe that the addition of Battles will contribute to our growing video revenue run-rate, which exceeded $62M annualized, based on the month of November, up from the $55M number we reported in October. Momentum in video revenue has continued into December, and this past weekend we achieved the highest video revenue day in our history,” said CEO Geoff Cook. “Beyond video, the fourth quarter appears to be shaping up to be a strong advertising quarter as well, with significant gains compared to the third quarter as the return to normal seasonal trends continues,” he added. PRICE ACTION: Shares of The Meet Group are up 15.6% to $3.90 in afternoon trading.