RNS Number:7003H
JumpTV Inc.
15 August 2006
JumpTV Reports Strong Growth in Channels and Subscribers for the Quarter Ending
June 30, 2006
TORONTO -- (MARKET WIRE) -- August 15, 2006 -- JumpTV Inc. (TSX: JTV) (AIM:
JTV), the world's leading subscription-based broadcaster of ethnic television
over the Internet, today announced its operating results for the three and six
month periods ended June 30, 2006.
Quarterly Highlights
-- We signed exclusive agreements with 66 new channel partners during the
quarter bringing us to a total of 204 channel partner agreements, of
which 194 are exclusive in nature. This represents a 47% increase from
March 31, 2006 when we had 138 channel partners.
-- Top channels launched during the quarter included Sony Entertainment
Television Asia (SET Asia), Dubai TV, Realitatea from Romania and America
TV from Peru.
-- We signed an important distribution and marketing agreement with Terra
Networks Brasil, a wholly owned subsidiary of Telefonica Internacional
S.A., to distribute JumpTV channels through Terra and its affiliates'
portals, e-commerce sites and Internet service providers in Argentina,
Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El
Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru,
Uruguay and Venezuela.
-- We invested heavily in our product and technology road map during the
quarter with a view to introducing new and improved functionality to the
www.jumptv.com website in Q3 2006.
-- We reported a 19.7% increase in net revenue to $426,998 in Q2 up from
$356,786 in the comparable quarter a year earlier. We reported a net loss
for the period of $6,449,005 in the quarter, up from $988,400 in the
comparable quarter a year earlier reflecting the enormous investment we are
making in our business.
-- As outlined in our prospectus dated August 1, 2006 our corporate
strategy to date has been to pursue channel partners and complete our
product and technology road map before pursuing subscribers. In Q2 we began
test-marketing certain subscriber acquisition strategies and our
subscriptions grew 31% to 18,119, up from 13,850 at March 31, 2006.
-- Near the end of the quarter on June 26, 2006, the Company filed a
preliminary prospectus in connection with our Initial Public Offering. We
raised for our treasury subsequent to the end of the quarter gross proceeds
of Cdn$66 million by virtue of the sale of 12 million common shares at
Cdn$5.50 per share. Trading on the Toronto Stock Exchange and the UK's
Alternative Investment Market (AIM) commenced as of closing on August 10,
2006.
-- As a result of the successful completion of our IPO, we have cash on
hand of approximately US$55 million as of today's date.
"We are committed to our succinct strategy of: (a) increasing our leadership
position in the number of exclusive channel partnerships worldwide and; (b)
contemporaneously creating the best user experience in the world, and (c)
beginning an aggressive subscriber acquisition/marketing roll-out." said G.
Scott Paterson, Chairman and Chief Executive Officer of JumpTV.
"In Q2, we invested significantly in all aspects of our business to further
establish JumpTV as the premier destination for ethnic television over the
Internet," Paterson added.
Our complete financial statements and other information relating to the Company
can be found on SEDAR at www.sedar.com and the Company's website at
www.jumptv.com.
About JumpTV
JumpTV is the world's leading subscription based provider of ethnic television
over the Internet. With over 200 channels from 65+ countries, JumpTV delivers to
its subscribers full-screen news, sports and entertainment content on a
real-time basis from all corners of the globe. JumpTV has subscribers from over
80 countries who view channels on the JumpTV online network via ordinary
Internet connections on their home computers, laptops, Internet-enabled
televisions and mobile phones.
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 document 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
earnings release, and the Company assumes no obligation to update or revise them
to reflect new events or circumstances. Many factors could cause the actual
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
detailed assessment of the risks that of the risks that could cause actual
results to materially differ from current expectations is contained in the "Risk
Assessment" section included in the company's final prospectus and MD&A posted
on www.sedar.com.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars, unless otherwise noted)
As at As at
June 30, December 31,
2006 2005
$ $
----------- ------------
(unaudited)
ASSETS
Current
Cash and cash equivalents 5,110,401 5,475,052
Other receivables 289,454 78,309
Prepaid expenses and deposits 482,643 14,812
----------- ------------
Total current assets 5,882,498 5,568,173
----------- ------------
Equipment, net 934,327 379,694
Intangible assets 464,528 --
Other assets 116,328 105,216
Deferred direct broadcast operating costs, net 79,203 96,803
Deferred share issue costs 3,449,672 --
----------- ------------
10,926,556 6,149,886
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and other accrued liabilities 3,251,350 1,008,845
Due to related parties 28,425 138,323
Current portion of accrued license fees 41,797 79,592
Accrued professional fees 3,308,714 195,592
Deferred revenue 80,853 56,268
Income taxes payable 41,800 16,800
----------- ------------
Total current liabilities 6,752,939 1,495,420
----------- ------------
Accrued license fees 120,000 120,000
----------- ------------
Total liabilities 6,872,939 1,615,420
----------- ------------
Shareholders' equity
Share capital 19,346,813 9,744,084
Contributed surplus 952,472 609,908
Accumulated other comprehensive loss (40,355) (40,355)
Accumulated deficit (16,205,313) (5,779,171)
----------- ------------
Total shareholders' equity 4,053,617 4,534,466
----------- ------------
10,926,556 6,149,886
=========== ============
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. dollars, unless otherwise noted)
(unaudited)
Three months Six months
ended ended
June 30, June 30,
------------------------ ------------------------
2006 2005 2006 2005
$ $ $ $
----------- ----------- ----------- -----------
Revenue, net 426,988 356,786 777,496 632,773
Direct broadcast
operating costs (480,681) (1,064,074) (731,011) (1,175,879)
----------- ----------- ----------- -----------
(53,693) (707,288) 46,485 (543,106)
----------- ----------- ----------- -----------
Other costs and expenses
Selling, general
and administrative 5,864,555 224,049 9,220,197 356,735
Stock-based
compensation 561,199 45,758 1,327,380 110,303
Amortization 25,918 5,375 47,851 9,309
----------- ----------- ----------- -----------
6,451,672 275,182 10,595,428 476,347
----------- ----------- ----------- -----------
(6,505,365) (982,470) (10,548,943) (1,019,453)
Loss on foreign
exchange 16,625 734 8,301 10,601
Interest income (84,985) (404) (156,102) (900)
----------- ----------- ----------- -----------
Loss before income
taxes (6,437,005) (982,800) (10,401,142) (1,029,154)
Provision for income
taxes 12,000 5,600 25,000 5,600
----------- ----------- ----------- -----------
Net loss for the
period (6,449,005) (988,400) (10,426,142) (1,034,754)
=========== =========== =========== ===========
Loss per weighted
average number of
shares outstanding
- basic and diluted (0.31) (0.10) (0.52) (0.11)
=========== =========== =========== ===========
Weighted average number
of shares outstanding
- basic and diluted 21,054,579 9,937,909 19,871,859 9,064,798
=========== =========== =========== ===========
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. dollars, unless otherwise noted)
(unaudited)
Three months Six months
ended ended
June 30, June 30,
------------------------ ------------------------
2006 2005 2006 2005
$ $ $ $
----------- ----------- ----------- -----------
OPERATING ACTIVITIES
Net loss for the period (6,449,005) (988,400) (10,426,142) (1,034,754)
Adjustments to reconcile
net loss to net cash
provided by (used in)
operating activities
Amortization 58,213 5,375 98,745 9,309
Stock based
compensation 561,199 45,758 1,327,380 110,303
Amortization of
deferred direct
broadcast
operating costs 8,800 -- 17,599 --
----------- ----------- ----------- -----------
(5,820,793) (937,267) (8,982,418) (915,142)
Changes in operating
assets and liabilities
Other receivables (196,721) (15,267) (211,145) (21,000)
Prepaid expenses,
deposits and other
assets (325,844) (25,991) (478,943) (25,988)
Accounts payable and
other accrued
liabilities 1,697,951 39,891 2,208,303 149,684
Due to related
parties (102,535) 26,213 (109,898) (14,258)
Accrued license fees (3,513) (1,526) (37,795) 36,612
Accrued professional
fees (68,264) -- (65,675) --
Deferred revenue 13,889 (14,604) 24,585 18,731
Income taxes payable 12,000 5,600 25,000 5,600
----------- ----------- ----------- -----------
Cash used in operating
activities (4,793,830) (922,951) (7,627,986) (765,761)
----------- ----------- ----------- -----------
INVESTING ACTIVITIES
Redemption of
short-term
investment -- 36,728 -- 36,728
Purchase of
equipment (445,306) (16,878) (703,721) (50,229)
Purchase of
intangible assets (360,760) -- (360,760) --
----------- ----------- ----------- -----------
Cash provided by (used
in) investing
activities (806,066) 19,850 (1,064,481) (13,501)
----------- ----------- ----------- -----------
FINANCING ACTIVITIES
Proceeds from share
issuances, net -- 959,000 7,998,646 959,000
Deferred share issue
costs (270,875) -- (270,875) --
Redemption of Class C
common share -- -- (1) --
Proceeds from exercise
of stock options 12,500 -- 600,046 --
Proceeds from issuance
of convertible
promissory note -- -- -- 20,000
Proceeds from issuance
of special warrants -- -- -- 750,000
Other (5,317) -- -- --
----------- ----------- ----------- -----------
Cash provided (used in)
by financing activities (263,692) 959,000 8,327,816 1,729,000
----------- ----------- ----------- -----------
Net increase (decrease)
in cash and cash
equivalents during the
period (5,863,588) 55,899 (364,651) 949,738
Cash and cash
equivalents,
beginning of period 10,973,989 1,130,270 5,475,052 1,130,270
----------- ----------- ----------- -----------
Cash and cash
equivalents,
end of period 5,110,401 1,186,169 5,110,401 1,186,169
=========== =========== =========== ===========
For further information please contact:
JumpTV
G. Scott Paterson
CEO
+1 416 368 6464
KCSA (North America)
Todd Fromer
+212 896 1215
Catullus Consulting (UK)
Alex Mackey
+44 7773 787 458
This information is provided by RNS
The company news service from the London Stock Exchange
END
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