3rd Quarter Earnings for MPL COMMUNICATIONS
MPL Communications Inc.
12/17/99 -
Third Quarter Earnings At Mpl Communications Reveal Dramatic
MPL COMMUNICATIONS INC ("MPZ-V") - Third
Quarter Earnings At Mpl Communications Reveal
Dramatic - Turnaround In Profitability
MPL COMMUNICATIONS Inc. has reported earnings
before interest, taxes, depreciation and amortization
(EBITA) in the third quarter of $379,791 or $0.025 per
share. Charges for interest, depreciation and amortization brought income before taxes to $213,714
or $0.014 per share compared to a loss of $1,359,888 in the three months ended Sept. 30 a year
earlier.
Revenue in the third quarter was $1,766,228, down from revenue of $2,224,999 in the comparable
period of 1998. The decline in revenue was more than made up by a dramatic reduction in expenses
to $1,552,514 for the quarter compared to $3,584,887 a year earlier. The Toronto-based
investment advice and financial information publisher of services that include the Investor's Digest of
Canada, ID OnLine, and The Investment Reporter attributed the dramatic turnaround to three
principal reasons.
The sale of four non-financial publishing properties in December, 1998, was largely responsible for
the lower revenues and also contributed substantially to the decline in expenses. Secondly, a program
begun in 1997 to accelerate the amortization of deferred subscriber acquisition costs was near
completion and its negative impact on income has almost been eliminated. Thirdly, management
services contracts with MPL's parent company and a related partnership were terminated before the
quarter began.
The acquisition by MPL of the Vancouver-based web site company Carlson OnLine Services Inc.
on Sept. 30 was a major highlight of the quarter but had no impact on the company's operating
results since it occurred on the final day of the quarter. Carlson publishes two of Canada's most
popular financial information web sites, www.carlsononline.com and its French language edition,
www.carlsonendirect.com.
Carlson founder, David Carlson, has joined MPL as vice-president, new media products. Mr.
Carlson will be responsible for merging the two Carlson sites with MPL's successful paid
subscription web site www.idonline.ca. "The combined resources of these web sites will create the
most comprehensive and useful data base of investment advice and financial information available to
Canadian investors," Mr. Carlson said. The three sites will continue to be published separately until
they are relaunched early in 2000 under the new name www.adviceforinvestors.com, he added.
MPL's common shares are listed for trading on the new Canadian Venture Exchange under the
trading symbol MPZ. TEL: (416) 869-1177
Stephen D. Pepper, Chairman, FAX: (416) 869-0456
MPL Communications Inc.
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