ZoomerMedia Limited (formerly Fifty-Plus.Net International Inc.) (TSX
VENTURE:ZUM) today announced the financial results for the first quarter ended
September 30, 2008.
On December 28, 2007, Olympus Management Limited ("OML"), a private Ontario
corporation, acquired control of Fifty-Plus.Net International Inc. ("FPN")
through a reverse take-over ("RTO").
As a result of the RTO, the former shareholders of Kemur Publishing Co. Ltd.
("Kemur") (i.e. OML) acquired control of FPN. Under the purchase method of
accounting Kemur has been identified as the acquirer, and, accordingly, the
entity is considered to be a continuation of Kemur with the net assets of FPN at
the date of the RTO deemed to have been acquired by Kemur. Since the RTO is
accounted for as a reverse take-over, the income statement figures up until the
date of the RTO (i.e. December 28, 2007) are solely those of Kemur. As the RTO
was completed on December 28, 2007, the results of FPN for the period from the
date of the RTO's closing (i.e. December 28, 2007) to December 31, 2007 are not
material and have not been included in the statement of income. The income
statement for the year ended June 30, 2008 includes the operations of Kemur for
the six months ended December 31, 2007 and the consolidated operations of Kemur
and FPN for the six months ended June 30, 2008. The comparative figures for last
year are solely those of Kemur. On June 10, 2008, Kemur was continued as a
Federal corporation and changed its name to ZoomerMedia Limited. On July 1,
2008, FPN and its wholly owned subsidiaries Fifty-Plus.Net Inc and ZoomerMedia
Limited amalgamated and will carry on business under the name ZoomerMedia
Limited.
For the quarter ended September 30, 2008, the Company had revenue of $2,539,172
and expenses of $3,214,022 with a net loss after tax of $674,850. These results
are in line with the Company's business plan for 2009 as it invests in the
development of ZOOMER magazine and accompanying Zoomer-branded websites, to
ensure that the Company maximizes its share of the growing media expenditures
anticipated in 2009 and beyond aimed at the aging baby boomer cohort. For the
comparable quarter ended September 30, 2007, the Company had revenue of
$1,296,090 and expenses of $1,224,381 with a net income after tax of $71,709.
Magazine advertising revenue for the quarter was $1,067,698 versus $868,237 for
the comparable quarter last year. This increase of $199,461 (23.0%) is a result
of increased advertising pages sold in the re-launched version of Zoomer
magazine. Subscription revenue for the quarter was $300,026 versus $395,124 for
the comparable quarter last year. This decline of $98,098 (24.1%) is
attributable to the decline in our subscriber base. An increase in sundry
revenue of $32,415 for the quarter was attributable to a combination of
increased interest revenue, prompt payment discounts and volume rebates from
suppliers. Website revenue of $354,882 and royalty revenue of $751,422 was
earned in the quarter. Comparative figures for these two revenue categories for
the comparable quarter last year are not contained in these consolidated
financial statements as the comparative figures are those of Kemur Publishing
Co. Ltd. ("Kemur").
Administration expenses were $230,683 versus $157,948 for the comparable quarter
last year, an increase of $72,735 (46.0%) due to the inclusion of the
administration costs pertaining to the website that are not included in the
comparative figures for the comparable quarter last year as the comparative
figures are those of Kemur.
Total Amortization expenses were $283,763 versus $7,703 for the comparable
quarter last year due to the inclusion of the amortization of $253,675
pertaining to the CARP Royalty Rights and the Intangible Assets that are not
included in the comparative figures for the comparable quarter last year as the
comparative figures are those of Kemur.
Circulation expenses were $140,494 versus $64,880 for the comparable quarter
last year, an increase of $75,614 (116.5%) due to significant circulation
expenses incurred in newsstand and other promotion of the relaunch of Zoomer
magazine while no such expenditure was incurred in the comparable quarter last
year.
Editorial expenses $594,970 versus $216,497 for the comparable quarter last
year, an increase of $378,473 (174.8%) due to additional personnel hires for the
re-launch of the magazine as well as increased expenditures for freelance
writers and photographers in the premiere issue of the re-launched magazine.
Production expenses were $813,182 versus $540,504 for the comparable quarter
last year, an increase of $272,678 (50.4%) as a result of printing and
distributing a significantly larger re-launch issue of Zoomer magazine including
50,000 newsstand copies.
Royalties paid were $372,781 versus $42,991 for the comparable quarter last
year. The increase is due to the obligations assumed on the acquisition of the
CARP Royalty Rights as described above.
Sales expenses were $576,404 versus $144,252 for the comparable quarter last
year, an increase of $432,152 (299.6%). This variance is attributable to the
inclusion of sales costs of $381,975 for website sales and CARP marketing
initiatives that are not included in the comparative figures for the comparable
quarter last year as the comparative figures are those of Kemur.
Professional fees were $54,637 versus $7,500 for the comparable quarter last
year, an increase of $47,137 (628.5%). This variance is attributable to the
inclusion of legal and audit fees for the public company that are not included
in the comparative figures for the comparable quarter last year as the
comparative figures are those of Kemur.
During the quarter, directors' fees of $8,000, management fees of $185,218,
stock-based compensation expense of $110,000 and website expenses of $134,485
were incurred. Comparative figures for these expense categories for the
comparable quarter last year are not contained in these consolidated financial
statements as the comparative figures are those of Kemur. Strong advertising
demand and the need to enhance the look and functionality of the Company's main
web properties, 50Plus.com and CARP.ca, have incurred additional expenditures in
this very important area. New features such as improved search capability and
new article presentation have increased page views by an average of 60% in the
past 12 months.
As at September 30, 2008, the Company had cash and short term deposits on hand
of $1,107,851 (June 30, 2008 - $2,233,536) and working capital (excluding the
current portion of deferred revenue) of $2,675,174 (June 30, 2008 - $2,887,318).
About ZoomerMedia Limited
ZoomerMedia Limited (ZUM) publishes ZOOMER magazine, the largest paid
circulation magazine in Canada for the mature market. Published nine times a
year, ZOOMER magazine has a paid circulation of approximately 190,000 and places
a further 50,000 copies on newsstands.
ZUM also derives royalty revenues through the provision of exclusive marketing
and membership services to CARP, A New Vision of Aging for Canada.
ZUM is also Canada's leading provider of online content targeting the 45+ age
group. Altogether, the portfolio of web sites and electronic newsletters
delivers over 2 million pages views per month. The key property is
www.50plus.com, delivering a wide range of information, entertainment, community
(forums, dating, blogs) and commerce together with four electronic newsletters
(health, money, travel, lifestyle), each of which has over 120,000 opt-in
subscribers.
ZUM also produces and manages www.carp.ca, the online home of CARP. With 350,000
members, CARP is Canada's largest association for the 45+. In addition, ZUM has
recently launched www.nomorewaiting.info, a web site focusing on CARP's advocacy
campaign, "No More Waiting," which aims to influence governments to improve
health care performance. ZUM also produces CARP Action Online, an electronic
newsletter for CARP members.
Cautionary note on forward-looking statements
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein. Certain statements
made in this report are 'forward-looking statements' which may include, without
limitation, any statement that may predict, forecast, indicate or imply future
results, performance or achievements, and may contain the words 'believe',
'anticipate', 'expect', 'estimate', 'project', 'will be', 'will continue', 'will
likely result' or similar words or phrases. Forward-looking statements involve
risks and uncertainties, which may cause actual results to differ materially
from the forward-looking statements. The risks and uncertainties are detailed
from time to time in filings by ZoomerMedia Limited with provincial securities
commissions. New risk factors emerge from time to time and it is not possible
for management to predict all such risk factors, nor can it assess the impact of
all such risk factors on the Company's business or the extent to which any
factor, or combination of factors, may cause actual results to differ materially
from those contained in any forward-looking statements. Such risks,
uncertainties and other factors include, but are not limited to, the following:
- the risks inherent in the operation of Internet media properties generally;
- the limited cash flow and the Corporation's dependency on a few large customers;
- the competition in the Internet and media industry for the baby boom
generation's business;
- the risks associated with governmental regulation of internet businesses;
- the risk of future legal claims made by or against the Corporation;
- the risk of managing the current revenue growth rate;
- the dependence of the business on the continuing operation of its computer
systems; and
- the dependence on key personnel.
Given these risks and uncertainties, investors should not place undue reliance
on forward-looking statements as a prediction of actual results.
Fifty-Plus.Net International Com Npv (TSXV:FPN)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Fifty-Plus.Net International Com Npv (TSXV:FPN)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024
