ZoomerMedia Limited (Formerly Fifty-Plus.Net International Inc.) Announces Second Quarter Financial Results

• Press Release
• Source: ZoomerMedia Limited
• On Monday March 2, 2009, 8:00 am EST

TORONTO, ONTARIO--(Marketwire - March 2, 2009) - ZoomerMedia Limited (formerly Fifty-Plus.Net International Inc.) (TSX VENTURE:ZUM - News) today announced the financial results for the first quarter ended December 31, 2008.

On December 28, 2007, Olympus Management Limited ("OML"), a private Ontario corporation, acquired control of Fifty-Plus.Net International Inc. ("FPN") through a reverse take-over ("RTO").

As a result of the RTO, the former shareholders of Kemur Publishing Co. Ltd. ("Kemur") (i.e. OML) acquired control of FPN. Under the purchase method of accounting Kemur has been identified as the acquirer, and, accordingly, the entity is considered to be a continuation of Kemur with the net assets of FPN at the date of the RTO deemed to have been acquired by Kemur. Since the RTO is accounted for as a reverse take-over, the income statement figures up until the date of the RTO (i.e. December 28, 2007) are solely those of Kemur. As the RTO was completed on December 28, 2007, the results of FPN for the period from the date of the RTO's closing (i.e. December 28, 2007) to December 31, 2007 are not material and have not been included in the statement of income. The income statement for the year ended June 30, 2008 includes the operations of Kemur for the six months ended December 31, 2007 and the consolidated operations of Kemur and FPN for the six months ended June 30, 2008. The comparative figures for last year are solely those of Kemur. On June 10, 2008, Kemur was continued as a Federal corporation and changed its name to ZoomerMedia Limited. On July 1, 2008, FPN and its wholly owned subsidiaries Fifty-Plus.Net Inc and ZoomerMedia Limited amalgamated and will carry on business under the name ZoomerMedia Limited.

For the quarter ended December 31, 2008, the Company had revenue of $2,814,620 and expenses of $3,618,786 with a net loss after tax of $804,166. These results are in line with the Company's business plan for 2009 as it invests in the development of ZOOMER magazine and accompanying Zoomer-branded websites, to ensure that the Company maximizes its share of the growing media expenditures anticipated in 2009 and beyond aimed at the aging baby boomer cohort. For the comparable quarter ended December 31, 2007, the Company had revenue of $1,096,988 and expenses of $1,099,126 with a net loss after tax of $2,238.

Magazine advertising revenue for the quarter was $897,665 versus $675,350 for the comparable quarter last year. This increase of $222,315 (32.9%) is a result of increased advertising pages sold in the re-launched version of Zoomer magazine.

Subscription revenue for the quarter was $251,612 versus $388,972 for the comparable quarter last year. This decline of $137,360 (35.3%) is attributable to the a change in the recognition of subscription revenue from recognizing subscription revenue on an equal monthly basis over the term of the subscription to recognizing the revenue based upon the delivery of each issue of the magazine over the term of the subscription period.

An increase in sundry revenue of $33,473 for the quarter was attributable to a combination of increased interest revenue, prompt payment discounts and volume rebates from suppliers.

Website revenue of $402,926, royalty revenue of $672,854 and show and conference revenue of $523,424 was earned in the quarter. Comparative figures for these three revenue categories for the comparable quarter last year are not contained in these financial statements as the comparative figures are those of Kemur.

Administration expenses were $230,122 versus $138,995 for the comparable quarter last year, an increase of $91,127 (65.6%) due to the inclusion of the administration costs pertaining to the website, royalties and shows and conferences that are not included in the comparative figures for the comparable quarter last year as the comparative figures are those of Kemur.

Total amortization expenses were $283,763 versus $3,763 for the comparable quarter last year due to the inclusion of the amortization of $253,674 pertaining to the CARP Royalty Rights and the Intangible Assets that are not included in the comparative figures for the comparable quarter last year as the comparative figures are those of Kemur.

Circulation expenses were $182,228 versus $60,212 for the comparable quarter last year, an increase of $122,016 (202.6%) due to significant circulation expenses incurred in newsstand and other promotion of the re-launch of Zoomer magazine while no such expenditure was incurred in the comparable quarter last year.

Editorial expenses were $738,301 versus $304,679 for the comparable quarter last year, an increase of $433,622 (142.3%) due to additional personnel hires for the re-launch of the magazine as well as increased expenditures for freelance writers and photographers in the re-launched magazine.

Production expenses were $1,181,106 versus $351,064 for the comparable quarter last year, an increase of $830,042 (236.4%) as a result of printing and distributing significantly larger issues of Zoomer magazine and an additional 50,000 newsstand copies for the November and December issues.

Royalties paid were $672,781 versus $33,700 for the comparable quarter last year. The increase is due to the obligations assumed on the acquisition of the CARP Royalty Rights as described above.

Sales expenses were $641,386 versus $146,715 for the comparable quarter last year, an increase of $494,671 (337.2%). This variance is attributable to the inclusion of sales costs of $463,064 for website sales, show and conference sales and CARP marketing initiatives that are not included in the comparative figures for the comparable quarter last year as the comparative figures are those of Kemur.

Professional fees were $99,503 versus $nil for the comparable quarter last year. This variance is attributable to the inclusion of legal and audit fees for the public company that are not included in the comparative figures for the comparable quarter last year as the comparative figures are those of Kemur.

During the quarter, directors' fees of $8,000, management fees of $196,244 and stock-based compensation expense of $124,000 were incurred. Website expenses recovered in the amount of $381,580 during the quarter are the result of a tax credit of $537,370 under the Ontario Interactive Digital Media Tax Credit Program. Strong advertising demand and the need to enhance the look and functionality of the Company's main web properties, 50Plus.com and CARP.ca, have incurred additional expenditures in this very important area. New features such as improved search capability and new article presentation have increased page views by an average of 60% in the past 12 months. Comparative figures for these expense categories for the comparable quarter last year are not contained in these financial statements as the comparative figures are those of Kemur.

As at December 31, 2008, the Company had cash and short term deposits on hand of $1,366,756 (June 30, 2008 - $2,233,536) and working capital (excluding the current portion of deferred revenue) of $2,505,462 (June 30, 2008 - $2,887,318). Management is of the opinion that these cash reserves are adequate to carry out the business plan for the balance of 2009. The Company continually reviews its business plan with a careful eye on available cash reserves to sustain operations. The Company has implemented a cost cutting program including salary and operating expense reductions the impact of which will begin to be reflected in the next quarter.