TORONTO – JumpTV Inc., the Internet broadcaster of international television and sports, has announced quarterly and year-end revenue increases, along with a rise in net loss.
For the quarter ended December 31, 2007, revenue increased to $4,791,534 (U.S. dollars) from $748,864 in the same period a year ago.
Of the $4.79 million in revenue in the quarter, $2.4 million was earned through monthly, quarterly and annual subscriptions, approximately $0.7 million from pay per view subscriptions, $0.45 million from advertising and $1.24 million from other services such as JumpTV’s net share of e-commerce transactions and ticketing.
Revenue for the year ended December 31, 2007 was $8,974,659, up from $2,061,031 reported in 2006. The Company acquired the Broadband Network Division of XOS Technologies Inc. on August 31, 2007.
“We are pleased to see our revenue and subscriber base continue to grow, though we recognize that the loss levels are not sustainable. To that end, we developed an eight- point strategic plan announced February 14, 2008, which we are confident will lead the JumpTV to cash breakeven by year end,” said Jordan Banks, newly appointed CEO of JumpTV, in a statement.
The net loss for the three months ended December 31, 2007 was $10,504,582 or $0.21 per basic and diluted share compared to $8,676,543 or $0.25 per basic and diluted share in the same period a year ago and $6,466,061 or $0.13 per share in the quarter ended September 30, 2007.
The increase in net loss was primarily due to non-cash expenses totalling approximately $3 million and the accrual of approximately $400,000 relating to severance.
The net loss for the year ended December 31, 2007 was $30,570,111, up from the loss of $25,597,096 reported in 2006. As previously reported, the Company had $51 million in cash and equivalents as of December 31, 2007.
JumpTV had approximately 92,000 subscriptions at December 31, 2007 as compared to 28,138 at December 31, 2006. As at December 31, 2007, approximately 57,000 subscriptions were subscriptions to JumpTV Sports and 35,000 were subscriptions to the Company’s international channels.
In addition, the Company had a total of approximately 52,000 pay-per view purchases during the three months ended December 31, 2007.
The Company launched a free-to-consumer offering of what were previous subscription-supported international channels in mid 2007 and now offers approximately 120 channels free-to-consumer in the US (and five in Canada).
Banks, former managing director of eBay Canada, was appointed CEO on October 29, 2007. JumpTV has also recently announced other executive hirings, including Blair Baxter as Chief Financial Officer; Elmer Sotto as Vice President, Product and Business Operations; and Jay Howard as Vice President and General Counsel. As well, Nada Usina was appointed President of JumpTV, replacing Kaleil Isaza Tuzman, who resigned from the Company’s Board of Directors effective March 26, 2008.
www.jumptv.com
