Fifty-Plus.Net International Inc.

Fifty-Plus.Net International Inc.

February 29, 2008 17:31 ET

Fifty-Plus.Net International Inc. Announces Second Quarter Financial Results

TORONTO, ONTARIO--(Marketwire - Feb. 29, 2008) - Fifty-Plus.Net International Inc. (TSX VENTURE:FPN) today announced the financial results for the second quarter ended December 31, 2007.

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 (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 are solely those of Kemur. The income statement in the next quarterly report, being the three months ending March 31, 2008, will consolidate the operations of Kemur and FPN.

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 for the three and six month periods ended December 31, 2007.

During the quarter ended December 31, 2007, the Company had revenue of $1,096,988 and expenses of $1,099,226 with a net loss after tax of $2,238. For the comparable quarter ended December 31, 2006, The Company had revenue of $1,021,337 and expenses of $982,043 with a net income after tax of $39,294. Advertising revenue was $675,350 versus $593,711 for the comparable period last year. This increase of $81,630 (13.7%) reflects that The Company was able to sell approximately eight more advertising pages through the fall advertising season. Subscription revenue was $388,972 versus $394,414 for the comparable period last year. This decline of $5,442 (1.4%) is attributable to the moderate decline in CARP membership. Sundry revenue of $32,666 was on track with sundry revenue of $33,212 for the comparable period last year.

Production expenses for the quarter ended December 31, 2007 were $351,064 versus $346,865 for the comparable quarter last year, an increase of $4,199 (1.2%) as a result of increased postage costs. Editorial expenses were $304,679 versus $191,906 for the comparable quarter last year, an increase of $112,773 (58.7%) due to personnel restructuring costs. Sales expenses were $146,715 versus $169,310 for the comparable quarter last year, a reduction of $22,595 (13.3%) largely due to lower sales personnel expenses associated with the current advertising revenues. Administration expenses were $138,995 versus $150,771 for the comparable quarter last year, a decrease of $11,776 (7.8%) primarily due to reduced personnel costs. Circulation expenses were $60,212 versus $59,994 for the comparable quarter last year, an increase of $218 (0.4%) due to increased amounts paid to FPN Subco for subscriptions received via the Internet. Royalties expense was $33,700 versus $27,730 for the comparable quarter last year, an increase of $5,970 (10.0%) due to higher advertising revenues during the current period. Amortization was $3,763 versus $11,567 for the quarter last year, a decrease of $7,804 (67.5%) due the write-off of $57,204 of fixed assets purchased at various times in the Company's past that are now past their useful life.

As at December 31, 2007, the Company had cash on hand of $4,233,299 (September 30, 2007 - $1,189,327) and working capital (excluding the current portion of deferred revenue) of $4,705,536 (September 30, 2007 - $1,831,533).

About Fifty-Plus.Net International Inc.

Fifty-Plus.Net International Inc. (FPN) operates as The 50Plus Group, Canada's leading provider of online content targeting the 50+ age group. Altogether, the 50Plus Group's portfolio of web sites and electronic newsletters delivers over 2 million pages views per month. The key property is, 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.

FPN also owns and operates Kemur Publishing Co. Ltd., publisher of CARP magazine, the largest paid circulation magazine in Canada for the mature market. Published nine time a year, with six regular issues and three special issues, CARP magazine has a paid circulation of approximately 190,000.

The 50Plus Group also produces and manages, the online home of CARP, Canada's Association for the Fifty-Plus. With almost 400,000 members, CARP is Canada's largest association for the 50+. In addition, The 50Plus Group has recently launched, a web site focusing on CARP's advocacy campaign, "No More Waiting," which aims to influence governments to improve health care performance. The 50Plus Group also produces CARP Action Online, an electronic newsletter for CARP members.

The 50Plus Group has a strategic alliance with Decima Research, to develop original research on the 50+ market, its demographics, psychographics and purchasing behavior.

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 Fifty-Plus.Net International Inc. 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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Fifty-Plus.Net International Inc.
    Eric Vengroff
    Executive Vice President
    (416) 607-7735