May 14, 2008 02:00 ET

JumpTV Reports Q1 2008 Financial Results

TORONTO--(Marketwire - May 14, 2008) - JumpTV (TSX: JTV) (AIM: JTV), a world leading broadcaster of live and on-demand sports video over the Internet, today announced financial results for the first quarter ended March 31, 2008.

Revenue was $3.6 million (all amounts in U.S. dollars) for the first quarter of 2008 compared to $4.8 million for the fourth quarter of 2007 and $1.0 million in the same period in 2007 -- marking a year-over-year increase of 260%. This increase can be attributed to the acquisitions of the Broadband Network Division of XOS Technologies Inc. and Cycling TV Limited as well as the move to a sustainable multi-layered revenue model that includes subscriber, ad supported and services-based revenue. The decrease by 25% compared to the fourth quarter of 2007 was primarily due to the seasonality of the business in the fourth quarter of 2007 during US college football season.

The net loss for the three months ended March 31, 2008 was $58.7 million or $1.19 per basic and diluted share as compared to $10.5 million or $0.21 per basic and diluted share for the three months ended December 31, 2007 and $7.1 million or $0.18 per basic and diluted share in the same period a year ago. The increase in net loss was primarily due to a $48.1 million non-cash impairment of goodwill and intangibles. In addition to the impairment of goodwill and intangibles, non-cash expenses were $2.0 million consisting of amortization and stock-based compensation compared to $3.0 million in the fourth quarter of 2007. As of March 31, 2008 the Company had $39.8 million in cash and equivalents.

"JumpTV's number-one priority is to reduce its cash burn," said Jordan Banks, CEO of JumpTV. "We expect to make significant headway toward this priority within the next 45 days."

In February, JumpTV announced a strategy that described the new direction of the Company. The strategy listed eight key points:

1. Become laser-focused on acquiring top-tier content to attract domestic and Hispanic sports fans;

2. Reduce costs related to acquiring and streaming all non-Latin American international content by creating partnerships with complementary media companies;

3. Explore the sale of the JumpTV content delivery network to maximize the value of the asset while minimizing the related ongoing operational cost to JumpTV;

4. Continue to build our advertising sales team;

5. Heighten focus on the JumpTV service layer to increase monetization of NCAA and international sports properties;

6. Increase engagement and interactivity for JumpTV users by immediately integrating a robust set of social media tools;

7. Consolidate offices and reconstitute a new executive team in Toronto to realize operational efficiencies and related savings from previous M&A activities; and

8. Continue to cull non-performing content.

Additionally during a public conference call on February 21, 2008, JumpTV disclosed a number of benchmarks related to the new strategy including:

--  The sale of the Company's content delivery network (CDN) within 90
    days of the February call
--  Partnering the Company's international channels with complementary
    media companies within 100 days of the call
--  Closing on ad sales with leading name brands

"We are tracking toward fulfilling these benchmarks. Now that we have begun the transitional period of the business in the second quarter, we are confident we will see the fruits of our labour in the third and fourth quarters as we move toward a cash break-even position," continued Banks. "As with any fundamental business change, it is critical we remain steadfast in our long term goal of profitability and continue to build a foundation on which we can grow."

The Company reported the following traffic related average monthly metrics in connection with overall user activity on, our affiliate web sites and on JumpTV Sports-managed sites but not including third-party distributors of JumpTV content such as and

             KPI                        Q1 2008        %         Q4 2007
                                      ----------   ---------   ----------
Average monthly stream views
         (millions)                          4.5        9.8%          4.1

                                      ----------   ---------   ----------
Average monthly minutes viewed
         (millions)                        104.1        3.3%        100.8

                                      ----------   ---------   ----------

Average monthly unique visitors
         (millions)                          8.8       (12%)         10.0

                                      ----------   ---------   ----------

Average monthly page views
         (millions)                         84.6       (10%)         94.0

                                      ----------   ---------   ----------

Average monthly advertising
  impressions (millions)                   231.0       11.4%        207.4

                                      ----------   ---------   ----------

The approximate number of subscribers as of March 31, 2007 was 82,000 down from 85,000 as at December 31, 2007 due to the seasonality of the sports business as well as the move toward more free-to-consumer offerings in the United States. Year over year, however, subscribers increased 273% from 30,000 in Q1 2007, primarily as a result of aforementioned acquisitions.

About JumpTV

JumpTV (, (TSX: JTV) (AIM: JTV), is a world leading broadcaster of live and on-demand sports video over the Internet. Each year JumpTV streams more than 10,000 live and exclusive sporting events -- comprised of top college (NCAA), professional and Hispanic sports coverage -- to millions of fans globally. JumpTV also delivers a broad offering of internet services to its partners including web hosting, live event video streaming, ticket management and e-commerce.

JumpTV gives fans a lifeline to their favorite sports content when they want it, how they want it, where they want it, wherever they are in the world.

Forward-Looking Statement

Forward-looking statements 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. Although the forward-looking statements contained in this release are based upon what Management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or 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 specific risks include, that the Company may not complete the sale or transition of its content delivery network at a time or on terms consistent with its plans, or at all, risks that the Company may not complete the partnership of its non-Latin American international channels at a time or on terms consistent with its plans, or at all, risks that the Company's share price may restrict its ability to enter into transactions on terms satisfactory to it, or at all, and risks that the Company may be affected by unanticipated termination costs related to legacy channel agreements. More detailed assessment of the risks that could cause actual results to materially differ than current expectations is contained in the "Risk Assessment" section of the Company's 2007 annual MD&A.

Key Performance Indicators and Other Measures

JumpTV is not aware of any uniform standards for calculating streams views, minutes viewed, page views, unique visitors, and advertising impressions 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.

Contact Information


    Jennifer Barron
    Email Contact

    Neil Johnson / Andrew Chubb
    Canaccord Adams Limited
    +44 207 050 6500