◆NowNews Digital Media Technology Reports FY 2016 First Quarter Results
Taipei City, Taiwan, May 16, 2016 -- NowNews Digital Media Technology Co. Ltd. (“NOWnews” or “the Company”) (OTCQB: NDMT), a new media company that provides news, information, e-commence and multimedia platform service, today released its financial results for the first quarter of 2016.
First Quarter 2016 Highlights
• Net revenue increased approximately $0.02 million, an increase of 4% from the corresponding period in 2015.
“By pivoting the core business on internet advertising and news content licensing, the newly adopted strategy has started to show its positive outcome,” Shuo-Wei Shih, CEO of NDMT said. “The company will keep enhancing these two businesses in future, and may expect a new surge of revenue once the integration with Beijing New Tong Ying Culture Media Co., Ltd. is fully consolidated.”
First Quarter 2016 Results
Net revenue for the three months ended March 31, 2016 was $0.54 million, an increase of $0.02 million or 4% from $0.52 million for the three months ended March 31, 2015. The increase was primarily due to the increase in advertisement revenue and licensing and services revenue.
For the three months ended March 31, the advertising avenue was $0.48 million 2016, a slight increase of $0.01 million, or 2%, from $0.47 million for the three months ended March 31, 2015. The slight increase was because the Company focuses on the more profitable internet advertising and marketing business.
Revenue from content licensing was $0.06 million for the three months ended March 31, 2016, an increase of $0.02 million, or 50%, from $0.04 million for the three months ended March 31, 2015. The increase was primarily due to new customers acquired during the three months ended March 31, 2016.
Cost of Revenue
Cost of revenue was $0.39 million for the three months ended March 31, 2016, an increase of $0.04 million, or 11%, as compared to $0.35 million for the three months ended March 31, 2015. The increase was mainly due to the increase of $0.04 million in labor costs.
Gross profit decreased approximately $0.02 million, or 12%, for the three months ended March 31, 2016, as compared to the same period in 2015, due to the increase in cost of revenue. Gross profit margin was 26% for the three months ended March 31, 2016 as compared to 31% for the same period in 2015.
S The amount increased by $0.03 million, or 30%, from $0.11 million for the three months ended March 31, 2015, to $0.14 million for the three months ended March 31, 2016. The increase in selling expenses was primarily due to the increase in labor costs resulting from the increase in the number of salespersons.
General and Administrative Expenses
General and administrative expenses decreased by approximately $0.05 million, or 23%, from $0.24 million for the three months ended March 31, 2015 to $0.19 million for the three months ended March 31, 2016. The decrease in general and administration expenses were principally due to the decrease in labor expenses and the consulting fee for system maintenance and development.
As a result of the above factors, the Company has net loss of approximately $0.189 million for the three months ended March 31, 2016 as compared to net loss of approximately $0.192 million for the three months ended March 31, 2015, representing a slight decrease of loss of $3,424, or approximately 2%.
Cash, Liquidity and Financial Position
As of March 31, 2016, cash and cash equivalents were $0.20 million, compared to $0.30 million at the end of 2015. The Company had a working capital deficit of $0.58 million at March 31, 2016, with $0.64 million of current assets and $1.32 million of current liabilities. The Company believes it can successfully secure financing to meet all working capital and capital expenditure needs for the next twelve months. However, there can be no guarantee that the Company will succeed in raising additional financing.
About NowNews Digital Media Technology Co. Ltd.
NowNews Digital Media Technology Co. Ltd. (OTCQB: NDMT) is a U.S.-listed holding company, through its subsidiaries, engaging in creating, collecting and distributing news and information through its website and applications on mobile phones or tablets. NowNews is also the largest online self-produced news content provider of Taiwan and the only Taiwanese online news website fully accessible in Mainland China. After launched Professional Category news brands, we launched Nownews Mobile Web and Apps. In July 2013, Nownews launched a new concept newspaper “NOWnews”, which is the first O2O case in Taiwan. Nownews owns a great amount of brands, such as the largest online self-produced news content provider「NOWnews」, the biggest Citizen Journalist platform「WEnews」, online video shopping website「NOWshopping」, etc. Its partners include CCTV, Yahoo, MSN, Hinet, Yam, Sina and other telecoms operators.
This news release contains “forward-looking statements”, which may include, but is not limited to, statements that express the company’s intentions, beliefs, expectations, strategies, predictions or any other statements relating to its future activities or other future events or conditions. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Nownews Digital Media Technology Co. Ltd. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Nownews Digital Media Technology Co. Ltd. disclaim, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Investor Relations Disclaimer
You are about to review presentations, reports, filings and/or other materials regarding NowNews Digital Media Technology Co. Ltd. (OTC: NDMT) that contain time-sensitive information. The information contained therein is only current as of the date thereof. "NowNews" expressly disclaims any obligation to review, update or correct these materials after the date thereof. NowNews may update, amend, supplement or otherwise alter the information contained in any such materials by subsequent presentations, reports, filings, or other means without notice.
Certain statements made on this web site or in materials accessed in or through this section of our web site are "forward-looking statements," which are subject to risks and uncertainties, and NowNews actual results may differ (possibly materially) from those indicated in such statements. See Legal Notice for further information regarding such statements and additional disclaimers with respect to the materials and sites that you may access through the Investors section of our Web site.