08/04 17:12 NTN Reports Second Quarter Financial Results <NTN.A>
NTN Reports Second Quarter Financial Results
CARLSBAD, Calif.--(BUSINESS WIRE)--Aug. 4, 1999--NTN Communications, Inc.
(AMEX:NTN), an Internet games provider and interactive television network operator, today
reported total revenue for the three months ended June 30, 1999 of $5.8 million, compared to
revenue of $5.9 million during the same period of 1998.
The Company's net loss for the quarter was $474,000 or $0.02 per share, compared to net income
of $1.3 million or $0.04 per share in the same quarter last year. Net income for the second quarter
of last year included a one-time gain of $1.6 million from the sale of an interest in a subsidiary, and
a nonrecurring expense of $360,000 to realign satellite dishes due to the failure of the PanAmSat
Galaxy IV satellite. NTN's second quarter 1999 earnings before interest, taxes, depreciation and
amortization ("EBITDA") were $1.2 million, versus $900,000 (excluding the gain on sale of interest
in subsidiary) for the second quarter of 1998.
"The results for the quarter are in line with our expectations as NTN continues to convert its current
hospitality network to the new NTN Digital Interactive TV network (DITV)," said NTN chairman and
chief executive officer Stanley B. Kinsey. "We are pleased with the initial rollout of the DITV system,
and to date have contracts for over 900 sales and conversions. In addition to this rollout, we are
focused on maximizing the value of our live sports games and trivia game show content. Over the
past decade, we believe these games have grown to become truly powerful and unique in the world
of game content. Later this year, we hope to solidify and announce a broader strategy to capitalize
on the value of the content by bringing it to the Internet."
NTN Communications has scheduled a telephone conference call to discuss the second quarter
1999 results on Monday, August 9, at 1:15 p.m. Pacific/4:15 p.m. Eastern. Interested individuals
may participate in the question and answer period following the discussion by calling (800)
281-0845 up to 15 minutes prior to the scheduled time the day of the conference, and mention the
NTN conference call led by NTN Communications chairman and chief executive officer Stan Kinsey.
NTN's QB1 goes international with NFLeurope.com
In April, NTN and the NFL Europe League announced that for the first time football fans would be
able to play QB1, NTN's interactive football strategy game, on their PC along with televised NFL
Europe Games. The interactive game site, QB1.com, debuted on the front page of the
NFLeurope.com website, which was promoted on air during game telecasts by FOX, Fox Sports
NET and DirecTV. NTN has registered over 100,000 unique QB1 visitors since launching the game
on Superbowl.com last January, and anticipates another increase this fall when football action kicks
off in the U.S. Once registered for QB1, players compete on the Internet in real-time in
conjunction with the actual game telecast, predicting which play the offense will run just prior to the
snap of the ball.
With its new Internet Stations, NTN links hospitality venues to patrons at home
The Company introduced the addition of two value-added components to its new Digital
Interactive TV network during the second quarter of 1999. A custom website for each subscribing
location hosted by ntn.com, and on-premise Internet stations to help NTN subscribers build
revenue from their community of patrons. NTN acquired in May the assets and rights to certain
technology, hardware and video games of Sikander, Inc. The coin-operated Internet stations
provide out-of-home access to the Web and video games for patrons in restaurants, hotels and
other public venues.
Popsicle purchases exclusive Kids Only Trivia sponsorship on America Online
In June, Popsicle purchased the sponsorship position on NTN's "Kid's Only Trivia" featured
exclusively on America Online. Featuring fun and friendly competition, the game offers young trivia
buffs questions from a variety of categories including pop culture, sports and science. Popsicle is
also the sponsor of two additional NTN "Summer Trivia" theme games on AOL. NTN, one of the
largest content providers for the online service, offers more than 40 different branded trivia games
to 17 million AOL members.
About NTN Communications, Inc.
NTN Communications, Inc. (AMEX: NTN) is a provider of Internet content and an interactive
television network operator. Based in Carlsbad, Calif., the company distributes multi-player content
to a variety of delivery platforms 24 hours a day. The NTN Network and NTN Digital Interactive TV
network broadcast interactive sports and trivia games to millions of consumers per month at
hospitality locations such as restaurants, hotels and bars. Additional users are exposed to NTN via
America Online; GTE mainStreet interactive cable service; ChoiceSeat, the supplier of "smart seat"
technology; and the Internet. The company's website is located at www.ntjn.com.
This release contains forward looking statements, including statements relating to the success of
the DITV network and future growth which are subject to risks and uncertainties including product
demand and market acceptance risks, the growth of the Internet, the impact of competitive
products and pricing and other risk factors detailed in the Company's Securities and Exchange
Commission filings, including the Company's Report on Form 10-K for the fiscal year ended
December 31, 1998 and its quarterly reports on Form 10-Q. -0-
NTN COMMUNICATIONS, INC. AND SUBSIDIARIES |
