Great quarter for TFSM.........Tuesday August 10, 4:33 pm Eastern Time
Company Press Release
24/7 Media, Inc. Reports 50 Percent Sequential
Revenue Growth in Second Quarter
NEW YORK--(BUSINESS WIRE)--Aug. 10, 1999--
Recent Company Highlights: -- Generated 50 percent revenue growth in 2Q 1999 from 1Q 1999 and
332 percent revenue growth from 2Q 1998. -- In August, agreed to acquire ConsumerNet.com, a leading online
direct marketing and database management company, further
diversifying 24/7 Media's Internet media offerings. -- In July, acquired ClickThrough Interactive, Canada's leading
Internet advertising sales network, expanding the Company's
global reach. -- In July, launched the NBC Interactive sales initiative, the first
nationwide advertising sales program to offer local market
multimedia advertising solutions for television and the Internet.
24/7 Media, Inc. (NASDAQ: TFSM - news), one of the largest Internet media companies, today announced its financial
results for the second quarter ended June 30, 1999.
The Company reported record revenues for the second quarter of $17.2 million, a 50 percent increase compared to revenues
of $11.5 million during the first quarter of 1999. The net loss for the second quarter was $7.2 million, or $0.37 per share based
on 19.4 million weighted average shares outstanding, compared to a net loss of $7.2 million, or $0.42 per share, in the first
quarter of 1999. Net loss for the second quarter before amortization of goodwill was $5.0 million, or $0.26 per share.
The Company reported revenues of $28.6 million for the six months ended June 30, 1999, a 453 percent increase over
revenues of $5.2 million for the six months ended June 30, 1998. The net loss for the six months ended June 30, 1999 was
$14.4 million, or $0.80 per share, compared to a net loss attributable to common stockholders of $12.6 million, or $2.02 per
share, for the six months ended June 30, 1998.
Increased revenue in the second quarter was driven by growth across 24/7 Media's full range of Internet media offerings, which
enabled the Company to attract additional customers who require a full-service solution for advertising and marketing on the
Internet. Revenue gains were fueled by continued growth in the number of ad impressions; contributions from recent alliances
and acquisitions; the effectiveness of the 24/7 Media sales force; increased brand awareness in the marketplace; and continued
global expansion of The 24/7 Network.
''We are very excited with the continued rapid growth of our business,'' said David J. Moore, president and chief executive
officer of the Company. ''24/7 Media is truly a diversified Internet media company. Our services include online advertising,
direct mail, database management, email and eCommerce. We offer a full-service approach to creating custom media solutions
for our customers. Our business results and the continued growth in our client base are proof that the marketplace is reacting
positively to our strategy.''
Mr. Moore added, ''We continue to be very encouraged with our technology development efforts that will give us a database
targeting advantage. We are on track to begin beta testing portions of this next-generation technology in the third quarter of this
year and expect to be rolling out our technology innovations starting in the fourth quarter.''
Driving continued growth in the Company's revenue, 24/7 Media delivered an aggregate of approximately 2.5 billion ad
impressions during June 1999, a 19 percent increase compared to 2.1 billion ad impressions generated during March 1999.
24/7 Media added a number of new, high-profile Web sites to its network during the second quarter, including the Drudge
Report.com, Nationalenquirer.com and Hansononline.com, among others.
According to Media Metrix, the 24/7 Media networks reached 55.2 percent of all U.S. Internet users, and 34.5 million unique
users visited one or more of 24/7 Media's Web sites in June 1999. The Company believes that this reach figure is among the
highest in the Internet advertising industry.
In addition to the continued rapid growth in the Company's U.S. Internet advertising business, the Company experienced rapid
growth in both its 24/7 Media Europe Network and its 24/7 Mail operations. Each of these operations enjoyed sequential
quarterly revenue growth in excess of 60 percent. Further, 24/7 Mail experienced growth in the number of opt-in names under
management from 3 million at the time of its acquisition in March to 8 million by the end of the second quarter.
''The diversification of our business has allowed us to attract and retain a large base of advertisers who want to maximize their
online exposure with integrated marketing campaigns on the Internet,'' said Mr. Moore. ''Consistent with our growth strategies,
we strengthened our position through a number of strategic announcements during the second quarter and subsequently.
''The agreement which was announced today (subject to standard closing conditions) to acquire ConsumerNet.com, a leading
online direct marketing and database company, will allow us to grow our 24/7 Mail business and our Profilz database, enhance
our email delivery capabilities, increase our exposure in the lucrative online entertainment product space and develop additional
cross-selling opportunities with our existing services,'' added Mr. Moore. ''In July, we further expanded our global reach by
acquiring ClickThrough Interactive, the leading Canadian online advertising network. China.com, our strategic partner in Asia
which operates the 24/7 Asia Network, had a very successful initial public offering in July, and our 8% ownership in China.com
currently has a market value significantly above the carrying value of our investment. Earlier in July, we launched our NBC
Interactive sales initiative, which is focused exclusively on the convergence of television and Internet advertising at the local
market level. In May, we announced a $32 million multi-year marketing agreement with Fleet Credit Card Services to market
its brand name credit cards across The 24/7 Network. And in April, we entered into an exclusive co-marketing agreement with
ShopNow.com to develop and promote online marketing and eCommerce services. These efforts, our increased brand
awareness, further diversification of our product offerings and other strategic initiatives, position 24/7 Media for continued
strong growth in the second half of 1999.''
About 24/7 Media
Reaching more than half of all online users in the U.S., 24/7 Media, Inc. is one of the largest Internet media companies.
Through its global online advertising and direct marketing networks, 24/7 Media provides a full suite of online media sales
services to advertisers and Web publishers. Through its flagship networks, 24/7 Media represents more than 2.5 billion ad
impressions per month on more than 300 high-profile sites globally. 24/7 Media also owns and operates 24/7 Profilz(TM), an
online co-op database of Web user profiles used to deliver targeted online banner and email campaigns. Based in New York,
24/7 Media, Inc. has offices in 33 cities in 20 countries. For more information please visit www.247media.com.
This news release contains statements of a forward-looking nature relating to future events or the future financial results of 24/7
Media. Investors are cautioned that such statements are only predictions and that actual events or results may differ materially.
In evaluating such statements, investors should specifically consider the various factors which could cause actual events or
results to differ materially from those indicated from forward-looking statements, including the matters set forth in 24/7 Media's
reports and documents filed from time to time with the Securities and Exchange Commission.
"The number the analysts will use for the earnings is .26 loss. There are $0.11 in charges which are not taken
into account when the analyst put together their estimates. TFSM beat expectations by .10 cents and
crushed the revenue figures which we out there. For those who weren't on the conference call, management
sounded very excited about biz going forward and were able to answer all questions without having to
tapdance around anything. The analysts on the call sounded pleased. I went long at 22.5 today and am
excited with the prospects. For any further questions on the call e-mail me at BLUMMIE@AOL.COM " |
