SOURCE: JumpTV Inc.

November 13, 2008 05:00 ET

JumpTV Reports Q3 2008 Results

PLAINVIEW, NY--(Marketwire - November 13, 2008) - JumpTV Inc. (TSX: JTV), an end-to-end IPTV service provider of live and on-demand sports, international and variety programming over the Internet, today announced results for the third quarter ending September 30, 2008.

Revenue was $3.9 million (all amounts in U.S. dollars) for the third quarter of 2008 compared to $2.0 million in the same period in 2007 -- marking a year-over-year increase of 95%. For the nine months ending September 30, 2008, revenue was $11.1 million compared to $4.2 million for the same period in 2007.

The net loss for the three months ended September 30, 2008 was $11.9 million (including a $4.7 million non-cash impairment charge) or $0.24 per share, basic and diluted as compared to $6.5 million or $.13 per share, basic and diluted in the same period a year ago. Non-cash expenses were $6.6 million in the third quarter, consisting of impairment of long lived assets, amortization and stock-based compensation. Net loss for the quarter, excluding these non-cash items was 5.3 million. As of September 30, 2008 the Company had $24.1 million in cash and cash equivalents. These changes can be attributed to the acquisition of CyclingTV and JumpTV Sports.

Most significantly, JumpTV announced the close of its merger with NeuLion, Inc. on October 21, 2008. The merged entity combines two IPTV industry leaders to deliver a best-in-class service for streaming content live and on-demand over the Internet and through set top boxes. NeuLion/JumpTV rank as a world leader in customer/partner relationships with sports and international content partners.

"We are very pleased with the union of NeuLion and JumpTV. Our combined capabilities enable us to provide the best technology and quality of service to our partners," said Nancy Li, CEO of the Company. "Together we will continue to evolve the Internet TV experience to a whole new level. We have already begun integrating our businesses and can see that the opportunities for our combined company are bountiful."

In its first step toward the future, the combined company intends to unite behind the NeuLion banner, but will retain the valuable JumpTV and JumpTV Sports brands.

About NeuLion and JumpTV

Based in Plainview, NY, Sanford, Florida and Toronto, Ontario, NeuLion and JumpTV (TSX: JTV) work with content partners to develop end-to-end solutions for multimedia IPTV services. The NeuLion iPTV Platform encodes, delivers, stores and manages an unlimited range of multimedia content and the Operational Support System (OSS) maintains all billing and customer support services. Content partners are responsible for content aggregation and the sales and marketing for the individual IPTV service. The Company ranks as a world leader in customer/partner relationships with sports and international television content partners including, in sports, the NHL, the NFL, NCAA Division I schools and conferences and, in respect to international television aggregators and networks, KyLinTV (Chinese), ABS-CBN (Filipino), Talfazat (Arabic), TV-Desi (South Asian) and Sky Angel (Christian). Customer/partner content can be viewed by way of Internet on PCs and on the television through the Company's proprietary IPTV set top box. Through the Company's consumer websites: JumpTV.com, Cycling.TV and SportsYa.com, as well as its collegiate and sports partner websites, the Company streamed over 15,000 live sporting events in the past 12 months and ranks consistently as one of the top ten ranked US sports web sites as measured by minutes viewed.

Forward-Looking Statement

Certain statements herein relating to JumpTV's merger with NeuLion, Inc. are forward-looking statements and represent JumpTV's current intentions in respect of future activities. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. Forward-looking statements can by identified by the use of the words "will," "expect," "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can," "should," "could," or "might" occur or be achieved and other similar expressions. 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: the integration of the businesses of JumpTV and NeuLion, our continued relationships with our channel partners, general economic and market segment conditions, competitor activity, product capability and acceptance, rates, technology changes and international risk and currency exchange. More specific risks include that the merged entity will not be able to realize some or all of the expected synergies due to incompatibilities in the merging businesses, the inability of management to bring about such synergies or a changing business environment rendering such synergies inadvisable or uneconomical. After integrating the businesses the suite of service offerings may not perform as expected if shifting demand moves in a direction away from the expected business model of the merged entity, if competitors are able to take market share away from the merged entity or if changing technology adversely impacts the merged businesses. In addition, while the Company expects its content partners and those of NeuLion to continue and expand their relationship with the merged entity, there can be no assurance that such relationships will continue as expected, or at all. 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 filed on www.sedar.com.

Contact Information

  • Press Contact:
    Jennifer Powalski
    Corporate Communications
    516-622-8334
    Email Contact

    Investor Relations Contact:
    G. Scott Paterson
    Executive Vice Chairman
    416-368-6464
    Email Contact