NETN -- great earnings & profit just out
Low float & low volume, this one could take off
NETWORKS NORTH INC. REPORTS REVENUE INCREASE OF 54% AND OPERATING
PROFIT
Increase of 24% for First Half of Fiscal 1998
TORONTO, April 15 /CNW-PRN/ - Networks North Inc. (NASDAQ:NETN)
announced its results for the six months ended February 28, 1998.
Revenues of $7,491,586 increased 54% over the $4,862,328 reported a
year earlier. Operating profit (income before income taxes and minority
interest) was $687,389, compared with $554,098 reported for the first
six months of fiscal 1997. Net income was $348,991 compared with $324,
965 reported for the first six months of fiscal 1997, resulting in net
earnings per share of $0.13 for the first six months of fiscal 1998,
compared with $0.12 for the first six months of fiscal 1997.
Networks North Inc., through a 100% owned subsidiary, purchased a 51%
interest in Interlynx Multimedia Inc. effective September 1, 1997.
Therefore, the figures for the first six months of fiscal 1998 include
100% of the revenues and expenses of Interlynx Multimedia Inc. and 49%
of the net income is deducted as minority interest. The company also
purchased the assets of Image Media Ltd. effective September 1, 1998,
and the figures for the first six months of fiscal 1998 include the
sales and expenses of this operation. Shareholder's equity as at
February 28, 1998 was $10,350,139 compared with $9,202,399 as at
February 28, 1997. All figures are reported in Canadian dollars.
<<
For 6 months ended For the 6
months ended
February 28, 1998 February 28, 1997
------------------ ----------------------
Revenues $7,491,586 $4,862,328
Operating Income 687,389 554,098
Net Income 348,991 324,965
Earnings per Common Share 0.13 0.12
For 3 months ended For the 3 months ended
February 28, 1998 February 28, 1997
------------------ ----------------------
Revenues $3,754,472 $2,673,036
Operating Income 308,438 268,502
Net Income 143,934 173,647
Earnings per Common Share 0.06 0.06
As at Feb. 28, 1998 As at Aug. 31, 1997
------------------- -------------------
Total Current Assets $6,561,184 $6,718,877
Total Assets 15,329,247 14,287,602
Total Current Liabilities 3,555,607 3,219,015
Shareholder's Equity 10,350,139 9,488,648
''There were a number of positive factors that contributed to the
increased revenues and operating profits in the first six months of the
year,'' said Peter Rona, President and CEO of Networks North Inc.
''With our recent acquisitions, our company is now more diversified and
all divisions are contributing to the growth that we are
experiencing.''
The company's hospitality network, which distributes programming to
restaurants, sports bars, and other group viewing locations, grew to
548 sites as at February 28, 1998, a healthy 10% growth from the year
end, August 31, 1997. This growth resulted from strong marketing and
sales efforts.
Magic Lantern successfully assimilated the operations of Image Media,
an integrated video and software marketer and distributor to the
education market in Canada, solidifying Magic Lantern's position as the
leader in the educational video market.
The company's 51% investment in Interlynx Multimedia Inc. added both
revenue and net income growth in the first six months of the year.
Interlynx Multimedia continues to market and distribute its multimedia
products as well as researching and developing new business
opportunities using its expertise in new media and the Internet.
Networks North Inc.'s operating units include wholly owned NTN
Interactive Network Inc. (NTNIN), Magic Lantern Communications Ltd. and
51% of Interlynx Multimedia Inc. NTNIN is the exclusive Canadian
licensee of NTN Communications, Inc. (AMEX:NTN), a leading producer and
programmer of interactive television, on-line and Internet
entertainment. The NTN Entertainment Network distributes programming to
more than 15 million participants per month at restaurants, sports
bars, and other group viewing locations throughout North America,
including over 550 in Canada with over 2.5 million participants. Magic
Lantern is Canada's premier distributor of educational media resources,
with exclusive rights to over 10,000 titles in English and French.
Magic's subsidiaries provide MPEG encoding, video duplication,
distribution, and fulfillment services for broadcasters. Interlynx
Multimedia is a new media production and distribution company
encompassing all aspects of electronic communications including
computer based learning, CD-ROM, the Internet and World Wide Web.
SOURCE Networks North Inc.
-0- 4/15/98 /CONTACT: Peter Rona, President,
Networks North Inc. (416) 675-6666, email to prona(at)ntnc.com; Daniel
Mothersill, Ciris International Inc. (416) 368-8770, email:
ciris(at)inforamp.net/
(NETN)
CO: Networks North Inc. ST: Ontario IN: CPR MLM SU: ERN
-30- |
