Strong Increase in Revenue Reported
Salon Media Group, Inc. (OTCQB: SLNM) today announced its
results for the three months and six months ended September 30,
2013. Net revenue from continuing operations for the quarter ended
September 30, 2013, was $1.6 million, an increase of 83% from the
same period last year. For the six months ended September 30, 2013,
net revenue was $2.8 million, an increase of 63% versus the same
period last year.
Continued robust traffic at Salon.com resulted in $1.4 million
in advertising revenues for the three months ended September 30,
2013, a 75% increase compared to the same period last year. For the
six month period, ad revenues were $2.6 million, or an increase of
73% compared to the same period in the prior year. The improvement
in the current quarter stemmed primarily from increased advertising
sold by Salon’s internal sales team, which rose 125% to $0.9
million for the three months ended September 30, 2013 as compared
to the three months ended September 30, 2012. This compares to the
June 2013 quarter when the growth in advertising stemmed primarily
from a dramatic increase in remnant ad sales which were $0.6
million for the June 2013 quarter.
Operating expenses for the three months ended September 30, 2013
rose 21% to $2.0 million compared to the same period last year. The
$0.3 million increase resulted primarily from higher stock
compensation costs and commissions paid to the advertising sales
team. The company’s loss from operations for the September 2013
quarter declined to $0.5 million, a 43% reduction from the $0.8
million loss for the same period last year.
Overall, Salon has been able to achieve revenue growth without a
corresponding increase in operating expenses. Excluding the impact
of discontinued operations, operating expenses for the six months
ended September 30, 2013 declined 2% to $3.9 million compared to
the same period last year. The $0.1 million decrease resulted
primarily from tight control of expenses. Controlling the increase
in expenses helped to narrow the company’s loss from continuing
operations to $1.2 million for the six months ended September 30,
2013, a 52% reduction from the $2.4 million loss for the same
period last year.
An important factor in increasing advertising revenues in future
periods is growth in Salon’s audience, as measured by monthly
unique traffic growth. Salon.com’s traffic in the second quarter
ended September 30, 2013 increased 8% compared to the same 2012
quarter and was consistent with June 2013 quarter, according to
data compiled by Google Analytics. However, unique visitors in the
quarter ended September 2012 included traffic to an affiliated
website that has since been shut down. Excluding the traffic from
the affiliated website, unique visitors to the Salon.com website in
the quarter ended September 2013 increased 67% compared to the
September 2012 quarter, pointing to consistent growth in readership
at the core brand.
Salon also experienced a 90% increase in mobile browser traffic
in the September 2013 quarter, compared to the same quarter last
year. With 40% of users visiting the Website from mobile devices, a
significant shift is underway in the platforms from which users
access our content. The entire company is focused on providing the
best possible experience on mobile, from content delivery to unique
advertising implementations.
Social referral traffic was also strong, growing 9% in the
September 2013 quarter versus the June 2013 quarter, and 88%
compared to the same period in the prior year. Facebook continues
to be the largest social referral, and grew 9% compared to the June
2013 quarter and 83% versus the September 2012 quarter. Twitter
also saw rapid growth in referrals with an increase of 19% compared
to the June 2013 quarter, and 152% compared to the September 2012
quarter.
"Salon has continued to make progress in the September quarter
towards achieving a sustainable and profitable business," said
Cynthia Jeffers, CEO and CTO of Salon Media Group. "The recent
strong growth in advertising revenue was the result of our
innovative advertising campaigns, a focus on improving the user
experience across platforms, and our ongoing pursuit of excellence
in journalism."
About Salon Media Group
Salon Media Group (OTCQB: SLNM.PK) operates the pioneering,
award-winning news site, Salon.com. Salon.com covers breaking news,
politics, culture, technology and entertainment through
investigative reporting, fearless commentary and criticism, and
provocative personal essays. Salon.com has been a leader in online
media since the dawn of the digital age and has bureaus in San
Francisco, New York City and Washington D.C.
Forward Looking Statements
This press release for the quarter and six months ended
September 2013 contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
that are made as of the date of this press release based upon our
current expectations. All statements, other than statements of
historical fact, including, but not limited to, statements
regarding our traffic, strategy, plans, objectives, expectations,
intentions, financial performance, financing, economic conditions,
on-line advertising, market performance, and revenue sources
constitute “forward-looking statements.” The words “may,” “will,”
“expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,”
“potential” or “continue” and similar types of expressions identify
such statements, although not all forward-looking statements
contain these identifying words. These forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause the actual results to differ materially from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Important factors that could cause
such differences include, but are not limited to:
- Our dependence on advertising sales for
significant revenues
- Our cash flows may not meet
expectations
- Our ability to control our
expenses
- Our reliance on related parties for
significant operating and investment capital
- Our principal stockholders exercise a
controlling influence over our business affairs and may make
business decisions with which non-principal stockholders disagree
and may affect the value of their investment
- The impact of controversial content on
our website
- Our ability to promote the Salon brand
to attract and retain users, advertisers and strategic
partners
- Our ability to increase referrals from
our social media presence
- Our technology development efforts may
not be successful in improving the functionality of our
network
This press release should be read in conjunction with our annual
report on Form 10-K for the fiscal year ended March 31, 2013, filed
with the SEC on June 26, 2013, and our quarterly report on Form
10-Q for the quarter and six months ended September 30, 2013, filed
with the SEC on November 14, 2013, including the “Risk Factors” set
forth in such reports, and our other reports currently on file with
the Securities and Exchange Commission, which contain more detailed
discussion of risks and uncertainties that may affect future
results. We do not undertake to update any forward-looking
statements except as otherwise required by law.
SALON MEDIA GROUP, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS(in thousands, except share and par value
amounts)
September 30, March 31,
2013 2013 (1) Assets (Unaudited)
Current assets: Cash and cash equivalents $ 17 $ 96 Accounts
receivable, net of allowance of $60 and $62 1,392 720 Prepaid
expenses and other current assets 200 318 Total
current assets 1,609 1,134 Property and equipment, net 57 58 Other
assets, principally deposits 97 107 Total assets $
1,763 $ 1,299
Liabilities and Stockholders'
Deficit Current liabilities: Short-term borrowings $ 1,000 $
1,000 Related party advances 1,641 9,171 Accounts payable and
accrued liabilities 1,158 1,128 Deferred revenues - 15
Total current liabilities 3,799 11,314 Deferred rent
2 12 Total liabilities 3,801 11,326
Commitments and contingencies
Stockholders’ deficit:
Preferred Stock, $0.001 par value,
5,000,000 shares authorized, 1,075 shares issued and outstanding at
September 30, 2013 and 8,141 shares issued and outstanding at March
31, 2013 (liquidation value of $9,699 at September 30, 2013)
- -
Common stock, $0.001 par value,
150,000,000 shares authorized, 76,245,442 shares issued and
outstanding at September 30, 2013 and 30,000,000 shares authorized,
29,573,265 shares issued and outstanding at March 31, 2013
76 30 Additional paid-in capital 115,520 106,408 Accumulated
deficit (117,634 ) (116,465 ) Total stockholders' deficit (2,038 )
(10,027 ) Total liabilities and stockholders' deficit $ 1,763
$ 1,299
(1) Derived from the Company’s audited
consolidated financial statements.
SALON MEDIA GROUP, INC.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except
per share data)(unaudited) Three Months
Ended Six Months Ended September 30, September
30, 2013 2012 2013
2012 Revenue, net $ 1,563 $ 853
$ 2,760 $ 1,689 Operating expenses: Production
and content 856 747 1,666 1,681 Sales and marketing 489 369 904 802
Technology 378 349 758 627 General and administrative 311 221 582
658 Separation expenses - - - 218 Total
operating expenses 2,034 1,686 3,910 3,986
Loss from operations (471 ) (833 ) (1,150 ) (2,297 )
Interest income (expense) (10 ) (69 ) (19 ) (128 ) Loss from
continuing operations (481 ) (902 ) (1,169 ) (2,425 ) Income from
discontinued operations - 242 - 233 Net
loss $ (481 ) $ (660 ) $ (1,169 ) $ (2,192 ) Basic and
diluted net loss per share Loss from continuing operations $ (0.01
) $ (0.27 ) $ (0.02 ) $ (0.74 ) Income from discontinued operations
- 0.07 - 0.07 Net loss $ (0.01 ) $ (0.20 ) $ (0.02 ) $ (0.67 )
Weighted average shares used in computing
basic and diluted net loss per share
76,231 3,283 71,613 3,283
Salon Media Group, Inc.Elizabeth Hambrecht, 415-645-9225
(Investor Relations)
Salon Media (CE) (USOTC:SLNM)
Historical Stock Chart
From Sep 2024 to Oct 2024
Salon Media (CE) (USOTC:SLNM)
Historical Stock Chart
From Oct 2023 to Oct 2024