Investor Relations

◆NowNews Digital Media Technology Reports FY 2017 First Quarter Results

05/19/2017

Taipei City, Taiwan, May 19, 2017-- -- NowNews Digital Media Technology Co. Ltd. (“NDMT” or “the Company”) (OTCQB: NDMT), a media company that provides news and multimedia platform services, today released its financial results for the first quarter of 2017.

First Quarter 2017 Highlights

• Net revenue increased $0.10 million, an increase of 19% from the corresponding period in 2016.

“For the first quarter of 2017, we increased our net revenue by 19%,” Shuo-Wei Shih, CEO of NDMT said. “We will remain focused on internet advertising business to generate revenue.”

First Quarter 2017 Results

Net Revenue

Net revenue for the three months ended March 31, 2017 was $0.64 million, an increase of $0.10 million or 19% from $0.54 million for the three months ended March 31, 2016. The increase was primarily due to the increase in advertisement revenue.

--Advertising

Advertising revenue was $0.58 million for the three months ended March 31, 2017, an increase of $0.10 million, or 21%, from $0.48 million for the three months ended March 31, 2016. The increase was because the Company focuses on the more profitable internet advertising and marketing business.

--Licensing

Revenue from content licensing was $0.06 million for the three months ended March 31, 2017, relatively the same with the result for the three months ended March 31, 2016.

Cost of Revenue

Cost of revenue was $0.57 million for the three months ended March 31, 2017, an increase of $0.18 million, or 45%, as compared to $0.39 million for the three months ended March 31, 2016. The increase was primarily attributable to the increase of $0.09 million in labor costs and $0.06 million in advertisement costs.

Gross Profit

Gross profit decreased approximately $0.08 million, or 55%, for the three months ended March 31, 2017, as compared to the same period in 2016, mainly due to the increase in cost of revenue. Gross profit margin was 10% for the three months ended March 31, 2017 as compared to 26% for the same period in 2016.

Selling Expenses

Selling expenses increased by $0.03 million, or 22%, from $0.14 million for the three months ended March 31, 2016, to $0.17 million for the three months ended March 31, 2017. 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 increased by approximately $0.16 million, or 83%, from $0.19 million for the three months ended March 31, 2016 to $0.35 million for the three months ended March 31, 2017. The increase in general and administration expenses was principally due to the increase in labor expenses.

Net Loss

As a result of the above factors, the Company has net loss of approximately $0.45 million for the three months ended March 31, 2017 as compared to net loss of approximately $0.19 million for the three months ended March 31, 2016, representing an increase of loss of $0.26 million, or approximately 139%.

Cash, Liquidity and Financial Position

As of March 31, 2017, cash and cash equivalents were $645,121, compared to $244,691 at the end of 2016. The Company had a working capital deficit of $0.61 million at March 31, 2017, with $1.36 million of current assets and $1.97 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. is a U.S.-listed media holding company focusing on the global Chinese market. The Company's holdings in the media space include digital media, movie production and distribution, and music copyright. The digital media business engages in creating, collecting and distributing news and information through its website and applications on mobile phones or tablets. The Company’s subsidiary NOWnews is the largest online self-produced news content provider of Taiwan and the only Taiwanese online news website fully accessible in Mainland China. The movie production and distribution business engages in Internet movie, Internet drama and Internet show production, foreign movie import and production, movie marketing and advertising, and Internet personality business. The Company’s music copyright business owns copyright to more than 3000 hit pop songs and provides a full range of Karaoke products. In addition, the Company has investments in the banking industry in Southeast Asia.

Forward-Looking Statements

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.

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