Source: New Frontier Media, Inc.
(BOULDER, CO) — New Frontier Media, Inc. a leader in the electronic distribution of adult entertainment, announced its first quarter results for the year ending March 31, 2002. The Company reported net revenue of $15 million for the quarter ended June 30, 2001, an 11% increase from $13.5 million for the quarter ended June 30, 2000. The Company reported EBITDA (earnings before interest, taxes, depreciation and amortization) of $2.1 million for the quarter ended June 30, 2001, a 17% increase from $1.8 million for the quarter ended June 30, 2000.
On a subsidiary basis, the Company’s Subscription/PPV TV Group reported revenue of $7.0 million for the quarter ended June 30, 2001, a 27% increase from $5.5 million for the quarter ended June 30, 2000. EBITDA for the Subscription/PPV TV Group was reported as $1.8 million, an increase of 100% from EBITDA of $0.9 million for the quarter ended June 30, 2000.
On a subsidiary basis, the Company’s Internet Group reported that net revenue was $7.9 million for the quarters ended June 30, 2001 and 2000, and that EBITDA was $2.3 million for the quarter ended June 30, 2001, representing a 15% increase from $2.0 million of EBITDA for the quarter ended June 30, 2000.
The Company also reported net income for the quarter ended June 30, 2001 of $0.2 million, or $0.01 per basic and fully diluted common share, compared to net income of $0.7 million, or $0.04 cents per basic common share and $0.03 cents per fully diluted common share, for the quarter ended June 30, 2000. Net income for the quarter ended June 30, 2001 included tax expense of $0.2 million.
“Our Subscription/PPV TV Group continues to show strong results despite an overall weakening in the economy. We remain encouraged by this Group’s performance and its overall contribution to New Frontier Media’s revenue and EBITDA,” stated Mark H. Kreloff, Chairman and CEO. “Our Internet Group delivered results which were in line with expectations given the general softness in Internet related businesses. Adult Internet remains a viable business model for New Frontier Media and we are encouraged, in particular, by the strong revenue growth of our broadband site www. ten.com. We have taken steps to increase the traffic to our sites through new and creative marketing programs. In addition, we are placing a greater emphasis on the quality, depth and breadth of content on our sites with the goal of greater conversion and retention rates,” continued Kreloff.
“Our first quarter results are in-line with budgeted numbers and our guidance for Fiscal 2002 remains unchanged,” concluded Kreloff.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities & Exchange Act. The Company intends forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. All statements related to the Subscription/PPV TV Group’s contribution to New Frontier Media’s revenue and EBITDA, the viability of the Adult Internet business model, our ability to increase traffic to our sites, our ability to increase the conversion rates and retention rates of our web sites, our Fiscal 2002 guidance and the outcome of any contingencies are forward-looking statements. All forward-looking statements made in this press release are made as of the date hereof, and the company assumes no obligation to update the forward- looking statements included in this news release. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward- looking statements. Please refer to the Company’s Form 10-K and other filings with the SEC for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports. Copies of these filings are available through the SEC’s electronic data gathering analysis and retrieval system (EDGAR) at www.sec.gov.
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The Condensed Statement of Operations should be read in conjunction with the Company’s Form 10-Q and Form 10-K, and other SEC filings. To obtain copies, please contact Trish DeSandro at New Frontier Media, Inc.
New Frontier Media, Inc. will be conducting its conference call and web cast to discuss earnings today at 4:15 p.m. Eastern Time. The participant phone number for the conference call is (800) 218-8862. To participate in the web cast please log on to www.noof.com and click on Shareholder Info, then Webcasts & Events. A replay of the conference call will be available for seven days after 5:15 p.m. Eastern Time on August 14th at (800) 405-2236, access code 381844. The replay will also be archived on the Corporate web site at www.noof.com.
ABOUT NEW FRONTIER MEDIA, INC.
New Frontier Media, Inc. is the fastest growing distributor of Adult Entertainment today. The Company delivers the most extensive lineup of quality programming over the broadest range of electronic means including cable, satellite, Internet, Broadband and video-on-demand.
The Erotic Networks, the umbrella brand for the Company’s subscription and pay television subsidiary, provides pay-per-view and subscription TV networks to over 31 million cable, DBS (direct broadcast satellite) and C-band households throughout North America. The Erotic Networks include Pleasure(TM), TeN(TM), ETC (Erotic Television Clips)(TM), Extasy(TM), True Blue(TM) and X-Cubed(TM). These networks represent the widest variety of editing standards available and are programmed without duplication to offer the most extensive selection of adult network programming under a single corporate umbrella.
IGallery, the Company’s Internet subsidiary, is a leader in the adult Internet market serving both the consumer and webmaster markets. IGallery designs and manages its own membership-based web sites for the consumer market. IGallery also offers a wide range of products and services to the webmaster market. Presently, IGallery owns over 1,500 Internet domain names and operates 50 thematically organized consumer sites. IGallery’s own Internet network infrastructure enables the delivery of live and on-demand video events to millions of Internet users.
For more information contact Karyn Miller, Chief Financial Officer, at (303) 444-0900, extension 102, and please visit our web site at www.noof.com.
