RNS Number:5783H
JumpTV Inc.
13 November 2007
JumpTV Q3 2007 Revenue Tops $2 Million
TORONTO--(Marketwire - November 13, 2007) - JumpTV Inc. ("JumpTV" or the
"Company") (TSX: JTV) (AIM: JTV), a leader in broadcasting international
television and sports over the Internet, today announced quarterly results and
selected financial metrics for the quarter ended September 30, 2007.
For the quarter ended September 30, 2007 revenue was US$2,004,056 up from
US$1,175,924 in the second quarter 2007 and from US$534,671 in the same period a
year ago. This increase was primarily due to the acquisitions of the Broadband
Network Division of XOS Technologies Inc. and Cycling TV Limited and the
increase in subscribers to JumpTV's international channels. Of the US$2 million
in revenue approximately US$287,000 was advertising-related revenue. XOS results
were consolidated as of September 1, 2007 and CyclingTV as of August 1, 2007.
The net loss for the three months ended September 30, 2007 was US$6,466,061 or
US$0.13 per basic and diluted share compared to US$6,514,301 or US$0.13 per
basic and diluted share in the quarter ended June 30, 2007 and compared to
US$6,494,411 or US$0.23 per basic and diluted share for the same period a year
ago. The net loss was $4,745,314 excluding non cash items during the quarter of
approximately US$686,113 in stock-based compensation and other compensation
payments and $1,034,634 that primarily relates to the amortization of tangible
and intangible assets. In addition, the Company used approximately $870,000 of
cash in the period to acquire its own stock.
As of September 30, 2007 JumpTV International had approximately 305 channel
partnerships comprising its international offerings compared to 225 channels as
of September 30, 2006 and 302 channels as of June 30, 2007. The Company signed
additional channels in Q3 2007 and continued its strategy of selectively culling
channels in the third quarter in order to focus its efforts on better performing
channels. The Company intends to continue to cull certain channels from its
platform over time to reduce costs, optimize revenues and better allocate its
resources.
As of September 30, 2007 JumpTV Sports had approximately 175 official and
exclusive broadcast relationships with U.S. colleges, universities, conferences
and professional sports teams including programs within the SEC, Big 12 and Big
10 NCAA Division I Conferences.
The approximate number of subscribers as of September 30, 2007 was 86,000 up
from 29,968 as at June 30, 2007. As at November 12, 2007 the Company had
approximately 94,000 subscribers.
The following metrics for churn, SAC and ARPU are based solely on JumpTV
International's content offerings as the Company does not have sufficient
history to accurately disclose these metrics for the recently acquired business:
-- Churn for the three months ended September 30, 2007 was 13.2%, down
0.8% from 13.3% for the three months ended June 30, 2007.
-- Subscriber acquisition costs (SAC) were US$14.49, a decrease of 57%
compared to US$33.69 in the second quarter of 2007. An increased focus on
search engine optimization (SEO), targeted event-driven marketing campaigns
and a reduction in marketing expenses contributed to the decrease.
-- Average monthly revenue per user (ARPU) was US$11.54 in the quarter
ending September 30, 2007, a 1% increase from US$11.42 in the second
quarter of 2007.
In addition, the Company notes that the average duration of a user session on
JumpTV International channels was approximately 50 minutes during the quarter.
JumpTV Executive Chairman G. Scott Paterson commented, "JumpTV's third quarter
was the most important in our history as we completed the strategic acquisition
of XOS (now JumpTV Sports) and we furthered the momentum of our free-to-consumer
ad supported model in the U.S. Importantly, our traffic metrics all showed
strong growth and our premium content showed encouraging subscriber growth as
well."
The Company reported the following traffic related average monthly metrics in
connection with overall user activity on JumpTV.com, our Jumper affiliates and
on JumpTV Sports-managed sites but not including third party distributors of
JumpTV content such as AOL.com and Terra.com:
-- Stream views -- 4.6 million average per month in Q3 up from 2.6
million average per month in Q2
-- Minutes viewed -- 85.4 million average per month in Q3 up from 62.9
million average per month in Q2
-- Page Views -- 66.0 million average per month in Q3 up from 46.2
million average per month in Q2
-- Unique visitors -- 6.8 million average per month in Q3 up from 4.6
million average per month in Q2
-- Ad impressions -- 116.9 million average per month in Q3 up from 22.2
million average per month in Q2
The Company reports the following recent developments for JumpTV:
1. We secured rights to additional cross-cultural content including channels in
Asia, the Middle East, Sub-Saharan Africa and Europe, sporting properties such
as the South American World Cup qualifying matches and the BIG EAST conference.
2. We signed and implemented distribution partnerships with Tiscali UK, which
currently offers approximately 170 JumpTV channels, MySpace and Veoh Networks.
Additionally, in many of our distribution partnerships we are starting to add
emphasis, in addition to our live streams, on short-form entertaining video
clips and highlights of major sporting events.
3. We have now deployed approximately 140 'Jumpers', our API media player, on
multiple sites around the world including half of these on our channel partners
own sites and we have a queue of interest from several hundred other websites.
4. We brought on a Head of Global Ad Sales who is building out his team and
aggressively engaging the ad community.
5. We further invested in and improved our global content delivery network
(CDN).
6. We made significant progress in integrating operations, marketing and finance
with the recently acquired Broadband Network Division of XOS Technologies Inc.
("JumpTV Sports").
Kaleil Isaza Tuzman, JumpTV President and COO and a member of the Board of
Directors said, "From an operational perspective we are better positioned today
than ever before to realize the true potential of JumpTV."
Jordan Banks, Chief Executive Officer, stated, "I am truly excited to have
joined JumpTV. There is an exciting confluence of trends that are uniquely
positioning JumpTV in the IPTV marketplace. The increasing penetration of
broadband, an accelerated acceptance of the internet as a video delivery
platform and the increasing thirst for compelling sports, entertainment and
political content from around the world is rapidly building a passionate and
loyal audience."
About JumpTV
JumpTV is a leading distributor of live international television and sports over
the Internet. With more than 300 television channels from 75+ countries and more
than 175 partnerships with sports teams and leagues, JumpTV delivers full-screen
sports, news and entertainment content on a real-time basis from all corners of
the globe to computers, Internet-enabled television sets, IP set-top-boxes and
cell phones with browser access. For more information, visit www.jumptv.com.
Forward-Looking Statements
This news release contains forward-looking statements that 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. These forward looking statements are made as of the date of this
news 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 of the Company to be materially different
from any future results, performance and 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 could cause actual results
to materially differ from current expectations is contained in the "Risk
Assessment" section included in the Company's MD&A in respect of the year ended
December 31, 2006 posted on www.sedar.com.
Key Performance Indicators and Other Measures
JumpTV is not aware of any uniform standards for calculating subscriptions,
subscribers, ARPU, SAC, Churn and channels signed 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 Inc.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(Expressed in U.S. dollars)
As at September 30, December 31,
2007 2006
$ $
----------- -----------
ASSETS
Current
Cash 60,202,143 21,936,878
Short-term investments 130,173 28,115,378
Accounts receivable 1,757,364 -
Other receivables 606,646 723,621
Prepaid expenses and deposits 1,669,757 1,178,119
----------- -----------
Total current assets 64,366,083 51,953,996
----------- -----------
Property, plant and equipment, net 6,762,559 1,269,488
Intangible assets 20,263,025 312,140
Goodwill 45,731,660 102,069
Other assets 686,765 161,246
Deferred direct broadcast operating costs, net 35,208 61,605
----------- -----------
Total assets 137,845,300 53,860,544
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 6,097,170 3,950,284
Bank indebtedness - 1,287,150
Due to related party 11,196 14,676
Accrued license fees 353,076 106,916
Accrued professional fees 394,081 371,782
Current portion of notes payable 37,139 -
Obligations under capital lease 111,504 -
Accrued stock appreciation rights - 1,087,760
Deferred revenue 2,408,560 205,314
Income taxes payable 95,050 61,800
----------- -----------
Total current liabilities 9,507,776 7,085,682
----------- -----------
Deferred rent 585,949 18,502
Notes payable 45,467 -
Obligations under capital lease 122,205 -
----------- -----------
Total liabilities 10,261,397 7,104,184
----------- -----------
Shareholders' equity
Share capital 173,717,912 75,227,648
Contributed surplus 5,348,142 2,937,219
Accumulated other comprehensive loss (40,355) (32,240)
Accumulated deficit (51,441,796) (31,376,267)
----------- -----------
Total shareholders' equity 127,583,903 46,756,360
----------- -----------
Total liabilities and shareholders' equity 137,845,300 53,860,544
=========== ===========
JumpTV Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(Expressed in U.S. dollars)
Three months Nine months
ended ended
September 30, September 30,
----------------------- -----------------------
2007 2006 2007 2006
$ $ $ $
----------- ----------- ----------- -----------
Revenue 2,004,056 534,671 4,183,126 1,312,167
Direct broadcast operating
costs (2,874,920) (706,102) (5,786,509) (1,437,113)
----------- ----------- ----------- -----------
(870,864) (171,431) (1,603,383) (124,946)
----------- ----------- ----------- -----------
Other costs and expenses
Selling, general and
administrative 5,971,444 5,318,685 19,239,821 14,538,882
Stock-based compensation
and other compensation
payments 686,113 1,417,321 2,635,953 2,744,701
Amortization of property,
plant and equipment 157,591 34,225 373,474 82,076
Amortization of intangible
assets 76,204 - 96,021 -
----------- ----------- ----------- -----------
6,891,352 6,770,231 22,345,269 17,365,659
----------- ----------- ----------- -----------
Loss before the following: (7,762,216) (6,941,662)(23,948,652)(17,490,605)
Gain (loss) on foreign
exchange 47,341 107,548 (38,962) 99,247
Investment income, net 1,234,190 350,703 3,932,411 506,805
----------- ----------- ----------- -----------
Loss before income taxes (6,480,685) (6,483,411)(20,055,203)(16,884,553)
Provision for income taxes 8,300 11,000 33,250 36,000
Future income tax recovery (22,924) - (22,924) -
----------- ----------- ----------- -----------
Net loss for the period (6,466,061) (6,494,411)(20,065,529)(16,920,553)
=========== =========== =========== ===========
Loss per weighted average
number of shares
outstanding - basic and
diluted (0.13) (0.23) (0.44) (0.74)
=========== =========== =========== ===========
Weighted average number of
shares outstanding -
basic and diluted 48,803,530 28,848,119 45,737,733 22,913,150
=========== =========== =========== ===========
JumpTV Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(Expressed in U.S. dollars)
Three months Nine months
ended ended
September 30, September 30,
------------------------ -----------------------
2007 2006 2007 2006
$ $ $ $
----------- ----------- ----------- -----------
OPERATING ACTIVITIES
Net loss for the period (6,466,061) (6,494,411) (20,065,529)(16,920,553)
Adjustments to reconcile
net loss to net cash
provided by (used in)
operating activities
Amortization 1,003,239 76,069 1,440,248 174,310
Unrealized gain on
short-term investments - - (22,910) -
Stock based compensation,
excluding change in
accrued stock
appreciation rights as
noted below 1,130,567 793,462 3,719,318 2,120,842
Amortization of deferred
direct broadcast
operating costs 31,395 8,799 94,186 26,399
----------- ----------- ----------- -----------
(4,300,860) (5,616,081)(14,834,687)(14,599,002)
Changes in operating
assets and liabilities
Accounts receivables (351,380) - (477,680) -
Other receivables 478,710 (197,586) 172,617 (408,731)
Prepaid expenses,
deposits and other
assets (24,656) (312,815) 304,364 (791,758)
Funds held in trust 14,884 (581,861) - (581,861)
Deferred direct
broadcast operating
costs - (191,690) - (191,690)
Accounts payable and
other accrued
liabilities 959,482 (1,020,553) (491,447) 1,221,951
Due to related party 18,059 (22,342) (3,480) (132,240)
Accrued license fees 160,578 23,899 246,160 (13,896)
Accrued stock
appreciation rights (449,653) 623,859 (1,087,760) 623,859
Accrued professional
fees (782,670) (2,750,880) 22,299 362,242
Obligation under
capital lease (20,659) - (20,659) -
Deferred revenue 481,114 22,253 556,404 46,838
Income taxes payable 8,300 11,000 33,250 36,000
Future tax liability (22,924) - (22,924) -
Deferred rent 308,857 - 567,447 -
----------- ----------- ----------- -----------
Cash used in operating
activities (3,522,818) (10,012,797)(15,036,096)(14,428,288)
----------- ----------- ----------- -----------
INVESTING ACTIVITIES
Redemption of
short-term
investments, net (12,848) - 28,000,000 -
Purchase of equipment (284,675) (118,835) (2,886,812) (771,709)
Acquisition of
SportsYA, net of cash
acquired of $3,308 1,200 333 (146,439) (444,973)
Acquisition of Cycling
TV Limited, net of
cash acquired of
$77,237 (2,357,360) - (2,357,360) -
Acquisition of
Broadband Network
Division of XOS
Technologies Inc.
(JumpTV Sports) (60,584,537) - (60,584,537) -
----------- ----------- ----------- -----------
Cash used in investing
activities (63,238,220) (118,502)(37,975,148) (1,216,682)
----------- ----------- ----------- -----------
FINANCING ACTIVITIES
Proceeds from share
issuances, net 7,433 55,566,287 93,104,131 63,564,934
Repayment of bank loan - - (1,287,150) -
Deferred share issue
costs - 3,449,672 - -
Redemption of Class C
common share - - - (1)
Proceeds from exercise
of stock options 186,963 25,438 314,861 625,484
Proceeds from exercise
of warrants - - 14,800 -
Normal course issuer bid (870,133) - (870,133) -
----------- ----------- ----------- -----------
Cash provided by (used in)
financing activities (675,737) 59,041,397 91,276,509 64,190,417
----------- ----------- ----------- -----------
Net (decrease) increase
in cash during the
period (67,436,775) 48,910,098 38,265,265 48,545,447
Cash, beginning of
period 127,638,918 5,110,401 21,936,878 5,475,052
----------- ----------- ----------- -----------
Cash, end of period 60,202,143 54,020,499 60,202,143 54,020,499
=========== =========== =========== ===========
JUMPTV PR / IR Contacts
North America:
Lewis Goldberg
KCSA Worldwide
+1-212-896-1216
lgoldberg@kcsa.com
UK:
Chris Bowman/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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