SOURCE: JumpTV Inc.

March 27, 2008 02:00 ET

JumpTV Reports Q4 Revenue of US$4.7 Million

JumpTV's 2007 Revenue: $8.97 Million Up From $2.06 Million in 2006

TORONTO--(Marketwire - March 27, 2008) - JumpTV Inc. ("JumpTV" or the "Company") (TSX: JTV) (AIM: JTV), a leader in broadcasting international television and sports over the Internet, today announced quarterly and year-end results for the period ended December 31, 2007 in U.S. dollars.

For the quarter ended December 31, 2007 revenue increased to $4,791,534 from $748,864 in the same period a year ago. Sequentially, revenue increased from $2,004,056 in the third quarter of 2007, primarily due to the acquisition of the Broadband Network Division of XOS Technologies Inc. on August 31, 2007.

Of the $4.79 million in revenue in the quarter, $2.4 million was earned through monthly, quarterly and annual subscriptions, approximately $0.7 million from pay per view subscriptions, $0.45 million from advertising and $1.24 million from other services such as JumpTV's net share of e-commerce transactions and ticketing.

Revenue for the year ended December 31, 2007 was $8,974,659 up from $2,061,031 reported in 2006. The Company acquired the Broadband Network Division of XOS Technologies Inc. on August 31, 2007.

The net loss for the three months ended December 31, 2007 was $10,504,582 or $0.21 per basic and diluted share compared to $8,676,543 or $0.25 per basic and diluted share in the same period a year ago and $6,466,061 or $0.13 per share in the quarter ended September 30, 2007. The increase in net loss was primarily due to non-cash expenses totaling approximately $3 million and the accrual of approximately $400,000 relating to severance.

The net loss for the year ended December 31, 2007 was $30,570,111 up from the loss of $25,597,096 reported in 2006.

As previously reported, the Company had $51 million in cash and equivalents as of December 31, 2007.

Jordan Banks, newly appointed CEO of JumpTV said, "We are pleased to see our revenue and subscriber base continue to grow though we recognize that the loss levels are not sustainable. To that end, we developed an eight point strategic plan announced February 14, 2008, which we are confident will lead the JumpTV to cash breakeven by year end."

JumpTV had approximately 92,000 subscriptions at December 31, 2007 as compared to 28,138 at December 31, 2006. As at December 31, 2007, approximately 57,000 subscriptions were subscriptions to JumpTV Sports and 35,000 were subscriptions to the Company's international channels. In addition, the Company had a total of approximately 52,000 pay-per view purchases during the three months ended December 31, 2007. The Company launched a free-to-consumer offering of what were previous subscription-supported international channels in mid 2007 and now offers approximately 120 channels free-to-consumer in the US (and five in Canada).

The following metrics for churn, SAC and ARPU are based solely on JumpTV International's content offerings. The Company doesn't intend to report on these subscription-based metrics in future periods. Metrics related to the company's expanding advertising business are noted below.

                                 ==========    ==========    ==========
                                                Quarterly
              KPI                  Q4 2007       Change %      Q3 2007
                                 ==========    ==========    ==========
              ARPU                   $11.72            2%        $11.54
                                 ==========    ==========    ==========
              SAC                    $17.94           24%        $14.49
                                 ==========    ==========    ==========
             Churn                    15.6%           18%         13.2%
                                 ==========    ==========    ==========

The Company reported the following traffic related average monthly metrics in connection with overall user activity on JumpTV.com, our Jumper affiliates and on JumpTV Sports-managed sites but not including third-party distributors of JumpTV content such as AOL.com and Terra.com:

                                  ==========    ==========    ==========
                                                 Quarterly
              KPI                   Q4 2007       Change %      Q3 2007
                                  ==========    ==========    ==========
   Average monthly stream views
           (millions)                    4.1       (10.9%)           4.6
                                  ==========    ==========    ==========
  Average monthly minutes viewed
           (millions)                  100.8         18.0%          85.4
                                  ==========    ==========    ==========
  Average monthly unique viewers
           (millions)                   10.0         47.1%           6.8
                                  ==========    ==========    ==========
   Average monthly page views
           (millions)                   94.0         42.4%          66.0
                                  ==========    ==========    ==========
  Average monthly advertising
    impressions (millions)             207.4         77.4%         116.9
                                  ==========    ==========    ==========

Nada Usina, newly appointed President of JumpTV noted, "We have built a direct ad sales force over the past few months to leverage the value of the inventory resident across all of our content. To date, we are delighted with the traffic metrics we are achieving together with the demographics of our users. This, coupled with our unique content, leads us to believe JumpTV is on the cusp of successfully monetizing these assets. We are also very excited to continue to monetize as we add new sports and Latin American channel partnerships and continue to grow our existing content relationships."

The Company reports quarterly and recent key developments for JumpTV:

-- Jordan Banks, former managing director of eBay Canada was appointed CEO on October 29, 2007.

-- Mr Banks announced JumpTV's strategic realignment subsequent to quarter end which will see the Company's resources focused on its 175 US college and other sports content partnerships and its 40 Hispanic sports and entertainment television channel partnerships. As a consequence of this focus, the Company is evaluating alternatives to optimize value for all constituents with respect to its content delivery network and its portfolio of non-Hispanic international channels.

-- In December 2007, comScore ranked JumpTV as the #1 most engaging sports website in the U.S. based on number of minutes watched per viewer. In addition, comScore ranked JumpTV #3 -- trailing only the NFL.com and ESPN.com -- based on total number of minutes viewed.

-- JumpTV announced a partnership with SCP Worldwide resulting in JumpTV having a carried interest in 20 per cent of the net revenue earned from the fees generated for 70 upcoming South American World Cup Qualifying matches to be played in 2008 and 2009 leading up to the FIFA World Cup in 2010.

-- Subsequent to year end JumpTV announced a series of key executive hires Blair Baxter as Chief Financial Officer; Elmer Sotto as Vice President, Product and Business Operations; and Jay Howard as Vice President and General Counsel. In addition, Nada Usina was appointed President of JumpTV, replacing Kaleil Isaza Tuzman. Mr Tuzma additionally resigned from the Company's Board of Directors effective March 26, 2008.

About JumpTV

JumpTV (www.jumptv.com), (TSX: JTV) (AIM: JTV), is a world leading broadcaster of sports and international television over the Internet. JumpTV streams over 10,000 live sports events per year in partnership with over 175 sports properties and also streams over 250 television channels from 70+ countries around the world. JumpTV delivers its users full-screen sports, news and entertainment content on a real-time basis to all corners of the globe via ordinary Internet connections on their home computers and laptops.

Forward-looking statement

Certain statements herein may constitute forward-looking statements, including those identified by the expressions "may," "will," "should," "could," "anticipate," "believe," "plan," "estimate," "potential," "expect," "intent" and similar expressions to the extent they relate to JumpTV or its managements. These statements reflect JumpTV's current expectations and are based on information currently available to management. These forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risk Factors" contained in JumpTV's prospectus (admission document) dated August 1, 2006 and the matters discussed under "Risk Factors" contained in JumpTV's final short form prospectus dated February 19, 2007. These forward-looking statements are made as of the date hereof, and JumpTV assumes no obligation to update or revise them to reflect new events or circumstances.

Key Performance Indicators and Other Measures

JumpTV is not aware of any uniform standards for calculating ARPU, SAC, Churn, 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.


JumpTV Inc.

                      CONSOLIDATED BALANCE SHEETS
          [Expressed in U.S. dollars, unless otherwise noted]

As at December 31
                                                  2007            2006
                                                   $               $
-------------------------------------------------------------------------

ASSETS
Current
Cash and cash equivalents                      51,202,984      21,936,878
Short-term investments                            130,640      28,115,378
Accounts receivable, net of allowance for
 doubtful accounts of $395,175 [2006 - nil]     1,782,280               -
Interest receivable                               726,995         117,947
Taxes receivable                                  659,000         602,152
Other receivables                                  79,385           3,522
Prepaid expenses and deposits                   1,044,921       1,178,119
-------------------------------------------------------------------------
Total current assets                           55,626,205      51,953,996
-------------------------------------------------------------------------
Property, plant and equipment, net              6,760,565       1,269,488
Intangible assets, net                         18,305,881         312,140
Goodwill                                       47,970,833         102,069
Other assets                                    1,234,038         161,246
Deferred direct broadcast operating costs, net     76,409          61,605
-------------------------------------------------------------------------
Total assets                                  129,973,931      53,860,544
=========================================================================

LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable                                3,296,858       1,931,589
Other accrued liabilities                       5,247,328       2,497,393
Bank indebtedness                                       -       1,287,150
Due to related party                               37,229          14,676
Current portion of notes payable                   13,586               -
Current portion of obligations under
 capital lease                                    120,465               -
Accrued stock appreciation rights                       -       1,087,760
Deferred revenue                                1,980,169         205,314
Income taxes payable                              115,050          61,800
-------------------------------------------------------------------------
Total current liabilities                      10,810,685       7,085,682
-------------------------------------------------------------------------
Deferred rent                                     599,440          18,502
Notes payable                                      31,881               -
Obligations under capital lease                    80,299               -
-------------------------------------------------------------------------
Total liabilities                              11,522,305       7,104,184
-------------------------------------------------------------------------

Shareholders' equity
Share capital                                 172,697,828      75,227,648
Contributed surplus                             7,740,531       2,937,219
Accumulated other comprehensive loss              (40,355)        (32,240)
Accumulated deficit                           (61,946,378)    (31,376,267)
-------------------------------------------------------------------------
Total shareholders' equity                    118,451,626      46,756,360
-------------------------------------------------------------------------
Total liabilities and shareholders' equity    129,973,931     153,860,544
=========================================================================




JumpTV Inc.

                 CONSOLIDATED STATEMENTS OF OPERATIONS
          [Expressed in U.S. dollars, unless otherwise noted]

Years ended December 31
                                                  2007            2006
                                                   $               $
-------------------------------------------------------------------------

Revenue                                         8,974,659       2,061,031
Direct broadcast operating costs              (10,422,335)     (2,569,648)
-------------------------------------------------------------------------
                                               (1,447,676)       (508,617)
-------------------------------------------------------------------------

Other costs and expenses
Selling, general and administrative            28,205,105      21,690,938
Stock-based compensation and other
 compensation payments                          4,701,029       4,097,351
Interest                                           18,532               -
Amortization of property, plant and equipment     564,365         128,549
Amortization of intangible assets                  91,790          22,401
-------------------------------------------------------------------------
                                               33,580,821      25,939,239
-------------------------------------------------------------------------
Loss before the following:                    (35,028,497)    (26,447,856)
Loss on foreign exchange                          (57,346)       (186,990)
Investment income                               4,568,982       1,083,050
-------------------------------------------------------------------------
Loss before income taxes                      (30,516,861)    (25,551,796)
Provision for income taxes                         53,250          45,300
-------------------------------------------------------------------------
Net loss for the year                         (30,570,111)    (25,597,096)
=========================================================================

Net loss per weighted average number of shares
 outstanding - basic and diluted                   $(0.66)         $(0.99)
=========================================================================

Weighted average number of shares
 outstanding - basic and diluted               46,586,730      25,848,396
=========================================================================




JumpTV Inc.

                 CONSOLIDATED STATEMENTS OF CASH FLOWS
          [Expressed in U.S. dollars, unless otherwise noted]

Years ended December 31
                                                  2007            2006
                                                   $               $
-------------------------------------------------------------------------

OPERATING ACTIVITIES
Net loss for the year                         (30,570,111)    (25,597,096)
Adjustments to reconcile net loss to cash
 used in operating activities
   Amortization                                 2,300,306         314,543
   Unrealized gain on short-term investments      (23,377)              -
   Stock-based compensation                     5,763,357       4,123,974
   Amortization of deferred direct broadcast
    operating costs                                75,581          87,920
   Effect of foreign exchange rate changes
    on cash and cash equivalents
-------------------------------------------------------------------------
                                              (22,454,244)    (21,070,659)
Changes in operating assets and liabilities
   Accounts receivable                         (1,774,695)              -
   Other receivables                            1,167,239           3,918
   Interest receivable                           (484,673)       (113,663)
   Taxes receivable                               (45,239)       (520,829)
   Prepaid expenses, deposits and other assets    188,305      (1,219,337)
   Accounts payable                                75,496       1,411,416
   Other accrued liabilities                    1,537,855       1,670,360
   Due to related party                            22,553        (123,647)
   Accrued stock appreciation rights payable   (1,087,760)              -
   Obligations under capital lease                (53,603)              -
   Note payable                                   (37,139)              -
   Deferred revenue                               507,745         149,046
   Income taxes payable                            53,250          45,000
   Deferred rent                                  580,938          18,502
-------------------------------------------------------------------------
Cash used in operating activities             (21,803,972)    (19,749,893)
-------------------------------------------------------------------------

INVESTING ACTIVITIES
(Purchase) redemption of short-term
 investments                                   28,000,000     (28,107,263)
Purchase of property, plant and equipment      (3,783,306)     (1,145,977)
Purchase of intangible assets                           -         (12,500)
Acquisition of HV Media Limited                   (14,552)       (440,847)
Acquisition of SportsYA, net of cash
 acquired of $3,308                              (180,917)              -
Acquisition of Cycling TV Limited, net of cash
 acquired of $77,237                           (2,383,491)              -
Acquisition of Broadband Network Division
 of XOS Technologies Inc., net of cash
 acquired of $77,487                          (60,926,708)              -
-------------------------------------------------------------------------

Cash used in investing activities             (39,288,974)    (29,706,587)
-------------------------------------------------------------------------

FINANCING ACTIVITIES
Proceeds from share issuances, net             93,104,131      63,809,337
Bank indebtedness                              (1,287,150)      1,287,150
Proceeds from (redemption of) Class C
 common share                                           -              (1)
Proceeds from exercise of stock options           503,861         713,381
Proceeds from exercise of warrants                 14,800         180,000
Normal course issuer bid                       (1,614,738)              -
-------------------------------------------------------------------------
Cash provided by financing activities          90,720,904      65,989,867
-------------------------------------------------------------------------
Effect of foreign exchange rate changes on
 cash and cash equivalents                       (361,852)        (71,561)
Net increase in cash and cash equivalents
 during the year                               29,266,106      16,461,826
Cash and cash equivalents, beginning of year   21,936,878       5,475,052
-------------------------------------------------------------------------
Cash and cash equivalents, end of year         51,202,984      21,936,878
=========================================================================

Contact Information

  • JUMPTV PR/IR CONTACTS:
    North America:

    Jennifer Barron
    Director of Communications
    JumpTV Inc.
    T: 1.647.426.1243
    Email Contact

    or

    Lewis Goldberg
    KCSA Strategic Communications
    T: 1.212.896.1216

    UK:

    Andrew Chubb
    Canaccord Adams Limited
    +44 207 050 6500