RNS Number : 3821U
  JumpTV Inc.
  14 May 2008
   

    JumpTV Reports Q1 2008 Financial Results

    TORONTO -- (MARKET WIRE) -- 05/14/08 -- JumpTV (TSX: JTV) (AIM:
    JTV), a world leading broadcaster of live and on-demand sports video
    over the Internet, today announced financial results for the first
    quarter ended March 31, 2008.

    Revenue was $3.6 million (all amounts in U.S. dollars) for the first
    quarter of 2008 compared to $4.8 million for the fourth quarter of
    2007 and $1.0 million in the same period in 2007 -- marking a
    year-over-year increase of 260%. This increase can be attributed to
    the acquisitions of the Broadband Network Division of XOS
    Technologies Inc. and Cycling TV Limited as well as the move to a
    sustainable multi-layered revenue model that includes subscriber, ad
    supported and services-based revenue. The decrease by 25% compared to
    the fourth quarter of 2007 was primarily due to the seasonality of
    the business in the fourth quarter of 2007 during US college football
    season.

    The net loss for the three months ended March 31, 2008 was $58.7
    million or $1.19 per basic and diluted share as compared to $10.5
    million or $0.21 per basic and diluted share for the three months
    ended December 31, 2007 and $7.1 million or $0.18 per basic and
    diluted share in the same period a year ago. The increase in net loss
    was primarily due to a $48.1 million non-cash impairment of goodwill
    and intangibles. In addition to the impairment of goodwill and
    intangibles, non-cash expenses were $2.0 million consisting of
    amortization and stock-based compensation compared to $3.0 million in
    the fourth quarter of 2007. As of March 31, 2008 the Company had $39.8
    million in cash and equivalents.

    "JumpTV's number-one priority is to reduce its cash burn," said
    Jordan Banks, CEO of JumpTV. "We expect to make significant headway
    toward this priority within the next 45 days."

    In February, JumpTV announced a strategy that described the new
    direction of the Company. The strategy listed eight key points:

    1. Become laser-focused on acquiring top-tier content to attract
    domestic and Hispanic sports fans;

    2. Reduce costs related to acquiring and streaming all non-Latin
    American international content by creating partnerships with
    complementary media companies;

    3. Explore the sale of the JumpTV content delivery network to
    maximize the value of the asset while minimizing the related ongoing
    operational cost to JumpTV;

    4. Continue to build our advertising sales team;

    5. Heighten focus on the JumpTV service layer to increase
    monetization of NCAA and international sports properties;

    6. Increase engagement and interactivity for JumpTV users by
    immediately integrating a robust set of social media tools;

    7. Consolidate offices and reconstitute a new executive team in
    Toronto to realize operational efficiencies and related savings from
    previous M&A activities; and

    8. Continue to cull non-performing content.

    Additionally during a public conference call on February 21, 2008,
    JumpTV disclosed a number of benchmarks related to the new strategy
    including:


    -- The sale of the Company's content delivery network (CDN) within 90
      days of the February call
    -- Partnering the Company's international channels with complementary
      media companies within 100 days of the call
    -- Closing on ad sales with leading name brands
       


    "We are tracking toward fulfilling these benchmarks. Now that we
    have begun the transitional period of the business in the second
    quarter, we are confident we will see the fruits of our labour in the
    third and fourth quarters as we move toward a cash break-even
    position," continued Banks. "As with any fundamental business change,
    it is critical we remain steadfast in our long term goal of
    profitability and continue to build a foundation on which we can
    grow."

    The Company reported the following traffic related average monthly
    metrics in connection with overall user activity on JumpTV.com, our
    affiliate web sites and on JumpTV Sports-managed sites but not
    including third-party distributors of JumpTV content such as AOL.com
    and Terra.com:


                                                          Quarterly
                                                        Change
             KPI                     Q1 2008     %         Q4 2007
                                      ----------   ---------   ----------
Average monthly stream views
         (millions)                       4.5        9.8%          4.1
                                          ----------   ---------   ----------
Average monthly minutes viewed
         (millions)                     104.1        3.3%        100.8
                                          ----------   ---------   ----------
    Average monthly unique visitors
         (millions)                       8.8       (12%)         10.0
                                          ----------   ---------   ----------
    Average monthly page views
         (millions)                      84.6       (10%)         94.0
                                          ----------   ---------   ----------
    Average monthly advertising
  impressions (millions)          231.0       11.4%        207.4
                                          ----------   ---------   ----------

The approximate number of subscribers as of March 31, 2007 was
    82,000 down from 85,000 as at December 31, 2007 due to the
    seasonality of the sports business as well as the move toward more
    free-to-consumer offerings in the United States. Year over year,
    however, subscribers increased 273% from 30,000 in Q1 2007, primarily
    as a result of aforementioned acquisitions.

    About JumpTV

    JumpTV (www.jumptv.com), (TSX: JTV) (AIM: JTV), is a world leading
    broadcaster of live and on-demand sports video over the Internet.
    Each year JumpTV streams more than 10,000 live and exclusive sporting
    events -- comprised of top college (NCAA), professional and Hispanic
    sports coverage -- to millions of fans globally. JumpTV also delivers
    a broad offering of internet services to its partners including web
    hosting, live event video streaming, ticket management and
    e-commerce.

    JumpTV gives fans a lifeline to their favorite sports content when
    they want it, how they want it, where they want it, wherever they are
    in the world.

    Forward-Looking Statement

    Forward-looking statements involve significant risk, uncertainties
    and assumptions. Many factors could cause actual results, performance
    or achievements to differ materially from the results discussed or
    implied in the forward-looking statements. These factors should be
    considered carefully and readers should not place undue reliance on
    the forward-looking statements. Although the forward-looking
    statements contained in this release are based upon what Management
    believes to be reasonable assumptions, the Company cannot assure
    readers that actual results will be consistent with these
    forward-looking statements. These forward-looking statements are
    made as of the date of this release and the Company assumes no
    obligation to update or revise them to reflect new events or
    circumstances, except as required by law. Many factors could cause
    the actual results, performance or achievements of the Company to be
    materially different from any future results, performance or
    achievements that may be expressed or implied by such forward-looking
    statements, including: general economic and market segment conditions,
    competitor activity, product capability and acceptance, international
    risk and currency exchange rates and technology changes. More
    specific risks include, that the Company may not complete the sale or
    transition of its content delivery network at a time or on terms
    consistent with its plans, or at all, risks that the Company may not
    complete the partnership of its non-Latin American international
    channels at a time or on terms consistent with its plans, or at all,
    risks that the Company's share price may restrict its ability to
    enter into transactions on terms satisfactory to it, or at all, and
    risks that the Company may be affected by unanticipated termination
    costs related to legacy channel agreements. More detailed assessment
    of the risks that could cause actual results to materially differ
    than current expectations is contained in the "Risk Assessment"
    section of the Company's 2007 annual MD&A.

    Key Performance Indicators and Other Measures

    JumpTV is not aware of any uniform standards for calculating streams
    views, minutes viewed, page views, unique visitors, and advertising
    impressions and we believe that JumpTV's presentation of these
    measures may not be calculated consistently with other companies in
    the same or similar business. Moreover, these measures are of
    operational performance and not measures of financial performance
    under generally accepted accounting principles.

    JUMPTV PR / IR CONTACTS:

    NORTH AMERICA
    Jennifer Barron
    JumpTV
    647-426-1243
    jbarron@jumptv.com

    UK
    Neil Johnson / Andrew Chubb
    Canaccord Adams Limited
    +44 207 050 6500
This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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