Big Stick Media Corporation
TSX VENTURE : BSM

Big Stick Media Corporation

March 17, 2008 17:20 ET

Big Stick Media Corporation Announces Financial Results for Year-Ended November 30, 2007

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2008) - Big Stick Media Corporation ("BSM" or the "Company") (TSX VENTURE:BSM) announces today its financial results for the year-ended November 30, 2007.

The Company achieved total operating revenue of $11.6 million and a net loss of approximately $3.17 million. The adjusted loss, excluding the effects of amortization expense, stock option compensation expense and foreign currency translation losses was approximately $1.34 million. Furthermore, included in this adjusted loss figure are approximately $140,000 of non-recurring expenses and losses related to (a) the Company's fantasy sports division and (b) the operation of the assets associated with the website www.who2beton.com which were disposed of shortly after the year end. After giving effect to these further adjustments yields, the Company experienced a normalized EBITDA loss of approximately $1.2 million. Much of this loss relates to the cost and expense of the Company's recent re-branding of its live information feed service, LineTracker, which management believes will be cash flow positive in 2008. Furthermore, the Company incurs significant expense in maintaining its status as a reporting issuer.

In reviewing the financial results for the year ended November 30, 2007, readers should be aware that the comparable figures from fiscal 2006 represent only three months of operations within the sports information business following the Company's re-activation which became effective on September 13, 2006.

The financial results for the year-ended November 30, 2007 reflect the following pertinent information:

- The fourth quarter of the fiscal year (ending November 30) is the quarter in which the highest volume of cash receipts are realized in the Company's Las Vegas call center operation and in the Linetracker division. This is due to the fact that the fourth quarter encompasses the core part of the football season which is by far the most important of the various sports that BSM covers. Given that many of the information services that the Company sells entail extended terms, the revenue related to the cash receipts is often recognized over protracted periods of time. As a result, as at November 30, 2007, the Company's balance sheet reflects a deferred revenue balance of $3.45 million of which $3.32 million will be recognized in the ensuing 12 months.

- All selling expenditures, such as commissions to handicappers and salespersons as well as the cost of producing and airing the proprietary Proline television program are expensed as incurred. As such, while the balance sheet reflects significant deferred revenue, there are no related deferred costs on the balance sheet. Accordingly, the first and second quarters of the ensuing fiscal year may be expected to benefit strongly from the recognition of previously deferred revenue while not being burdened by the marketing and selling costs incurred to earn such revenue.

"While we continue to work diligently to achieve cash flow positive results, I am encouraged by the revenue generation that our operations have produced", stated Christopher Kape, President and CEO. "We have focused significant time and attention in fiscal 2007 on enhancing our market share for Linetracker and were successful in raising our share of this lucrative sector from under 10% to approximately 30%. Moreover, we have identified several new marketing initiatives that we will implement in fiscal 2008 that we feel will increase the effectiveness of our advertising and lead to enhanced revenues. As well, there are a number of cost savings that have similarly been identified and in respect of which the necessary adjustments are being made. Based on these factors, we believe that the achievement of cash flow positive results from operations is an attainable goal for fiscal 2008."

Inclusive of funds held within reserves required by the Company's payment processors, the balance sheet reflects aggregate cash of $3.29 million. The Company has ample working capital to meet all of its foreseeable obligations based on its plans for the next twelve months. However, should the Company wish to take advantage of one or more acquisition opportunities that present themselves, it is likely that additional financing will be required.

The Company's annual consolidated financial statements and management discussion and analysis for the year-ended November 30, 2007 are available at www.sedar.com.

The Company trades on the TSX Venture Exchange under the symbol BSM.

About Big Stick Media Corporation

Big Stick Media Corporation owns and operates a portfolio of assets that provide fact-based and opinion-oriented information relevant to the sports industry. These assets include websites, client-server software, publications and call centers. The Company generates revenues in a number of ways, including various direct to consumer services and direct to business sales through a portfolio of websites which includes www.JimFeist.com, www.Picksonline.com, www.Vegasonlinesports.com, www.OffshoreConnection.com and www.ScoresLinesPicks.com. Big Stick Media also operates Linetracker (www.linetracker.com), a state of the art, real-time sports information system for serious sports enthusiasts, handicappers and bettors. In addition, the Company operates various fantasy sports contests catering to all the sports enthusiasts through its fantasy sports website www.rotoplay.com.

Cautionary Statement

This press release may contain certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Big Stick Media Corporation's expectations are various risks detailed from time to time in the filings made by Big Stick Media Corporation with securities regulations.

The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy and accuracy of this release.

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