Leisureplanet Holdings Reports First-Quarter Results
81%-Owned Leisureplanet Subsidiary Experiences Significant Growth
MIAMI, FLORIDA--(BUSINESS WIRE)--November 11, 1999-- Leisureplanet Holdings, Ltd. (Nasdaq: LPHL -
news; the ``Company') today reported financial results for its first quarter ended September 30, 1999.
The Company's consolidated net loss for the quarter was $2,833,436, or $0.44 a share, compared to consolidated earnings from continuing operations of
$390,011, or $0.05 per share, during the three months ended September 30, 1998. Revenues were $22.7 million compared to $19.3 million in the
previous year's first quarter. The results for the quarter ended September 30, 1998 do not include the Company's 81%-owned Leisureplanet subsidiary, an
Internet travel services provider, which was acquired by the Company after that period.
The Company's balance sheet remained strong with a cash position in excess of $17 million, primarily held at the operating subsidiaries.
Clive Kabatznik, Chief Executive Officer of Leisureplanet Holdings, said: ``The first-quarter results reflect our new focus on investing in and developing
Internet-related businesses. They also include strong performance by our South African subsidiary, which posted a revenue increase of approximately 18%
over last year's reporting period. We continue to execute our business plan with regard to Leisureplanet. The Company experienced a number of positive
developments during the quarter. Moreover, we believe that the pending merger of Travelocity and Preview Travel (PTVL) and the successful initial public
offering of Expedia (EXPE) yesterday reinforce our view that the online travel business is one of the most exciting and significant areas in e-commerce
today. We are, therefore, extremely focused on consolidating and building on Leisureplanet's position as a leading international online travel services
company. Leisureplanet spent approximately $1 million during the first quarter on marketing activities and we anticipate that these marketing requirements
will grow as we seek to establish additional major global distribution alliances. It is our hope that over the next few months we can clearly position
Leisureplanet as one of the premier online travel service companies and the leading international player.'
The Company's recent achievements include:
The successful launch of Leisureplanet's local services in France and Germany with continued country-specific sites planned in a phased rollout over
the next 8 months.
The hiring by Leisureplanet of Roland Rollus as Chief Financial Officer. Mr. Rollus brings to Leisureplanet the financial experience and sophistication
to help manage the ongoing process of making the Leisureplanet travel service the benchmark for the online industry.
The continuing development of Leisureplanet's new booking engine and redeveloped web sites, which the Company believes will set a new standard
for international online travel. Deployment is planned in the first quarter of 2000.
Mr. Kabatznik added: ``The benefits of our recent agreements with Infospace.com and Nomade.fr are just beginning to be realized. With the full integration
of these services, we expect that all major parameters of the business will benefit over the next three to six months.'
Leisureplanet currently generates approximately 400,000 visitor sessions a month, an increase of approximately 15% over the past three months.
Leisureplanet currently has approximately 320,000 unique registered users, an increase of approximately 38% over the past three months. Transaction
volumes, while still small in number, have increased by almost 43% over the past three months, and Leisureplanet's look-to-book ratio has improved by
almost 25% during the same period.
Leisureplanet Holdings, Ltd. is a publicly traded investment company whose holdings include an 81% stake in Leisureplanet, a global Internet-based travel
services provider, as well as value-added convenience foods and leisure products businesses.
The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties. These
risks and uncertainties include, but are not limited to, risks associated with the uncertainty of future financial results, requirements and availability of
additional financing, development of new products, regulatory approval processes, the impact of competitive products or pricing, unpredictability of patent
protection, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and
Exchange Commission.
LEISUREPLANET HOLDINGS, LTD.
FINANCIAL TABLES
Quarter ended Sept. 30,
1999 1998
$ $
Revenues 22,721,938 19,257,120
Consolidated Net (loss) on
continuing operations (2,833,436) 390,011
Loss on discontinued operations (1,506,150)
Net (loss)/earnings (2,833,436) (1,116,139)
Net (loss)/earnings
per share (primary) ($0.44) ($0.15)
Average number of shares
outstanding (primary) 6,377,981 7,854,324
For earnings per share purposes, fully diluted shares were not considered, as the result would be anti-dilutive. |
