- Strong Global Penetration of DubLi.com Product -
- Successful Launch of VIP Lounge, Augmenting Cash Back Offerings -
BOCA RATON, Fla.--(BUSINESS WIRE)--
Ominto, Inc. (Nasdaq:OMNT), a global leader in online Cash Back
shopping, today reported financial results for the fiscal second quarter
and six months ended March 31, 2017.
Revenue increased by $3.9 million or 96.7% to approximately $7.9
million in the second fiscal quarter of 2017, versus approximately $4.0
million over the prior year comparable period. Gross income was
approximately $3.5 million or 44.0% gross margin compared to
approximately $1.0 million and 24.5% in the prior year period. Operating
margin improved by 19.3 points to -56.6% from -75.9% in the prior year
period. The net loss from continuing operations was approximately $4.5
million in the second quarter of 2017, or a loss of $0.23 per share,
compared with the net loss from continuing operations of approximately
$3.0 million, or a loss of $0.25 per share, in the second fiscal quarter
Net cash flow from continuing operations for the six months ended March
31, 2017 improved to $790,211 from a loss of $4.2 million in the same
period of the prior year. In the six-month period ended March 31, 2017,
revenue increased by $4.3 million or 45.7% to approximately $13.7
million versus approximately $9.4 million over the prior year comparable
period. Gross income was approximately $5.4 million or 39.1% gross
margin for the six months ended March 31, 2017 compared to approximately
$2.5 million and 26.7% in the prior year period. Operating margin
improved by 6.4 points to -49.7% for the six months ended March 31, 2017
from -56.1% in the prior year period. The net loss from continuing
operations was approximately $6.9 million in the first six months of
2017, or a loss of $0.40 per share, compared with the net loss from
continuing operations of approximately $5.0 million, or a loss of
$0.43 per share, in the same period of the prior year.
Michael Hansen, Chief Executive Officer, stated, "Our financial
performance continues to improve and demonstrates the further
penetration and acceptance of our DubLi.com product worldwide. Our
strategy continues to be one of growing our global customer base through
deepening our presence in existing countries and selectively expanding
into new countries. We are also focused on adding new stores to our
shopping platform to offer increased Cash Back opportunities to our
customers. We are pleased with our continued investment into the
DubLi.com product platform, as was demonstrated with the launch of our
new VIP Lounge on April 18. We are also diligently managing our costs
and evaluating further opportunities for cost efficiencies. We believe
in our model, our concept and our future."
Mr. Hansen, continued, "The response to our new VIP Lounge has been
favorable. It has always been our goal to offer our global customer base
a superior shopping and savings opportunity when they shop at DubLi.com.
We expect the VIP Lounge opportunity to drive increased VIP member
penetration, offering strong recurring revenues at solid margins."
During the second quarter, in recognition of the company's Founder and
CEO, Michael Hansen's efforts in helping the company obtain its approval
for listing on Nasdaq Capital Markets, the company awarded him a
one-time cash bonus of $2,000,000. In addition, the company awarded
100,000 shares of restricted common stock to Mr. Hansen and accelerated
the vesting of 100,000 shares of restricted common stock previously
awarded. Mr. Hansen subsequently purchased 300,000 shares of common
stock from the company at the price of $6.90 per share, $2,000,000 of
which was paid during the second quarter and $70,000 of which was paid
during the third quarter.
About Ominto, Inc.
Ominto, Inc. is a global e-commerce leader and pioneer of online Cash
Back shopping, delivering value-based shopping and travel deals through
its primary shopping platform and affiliated Partner Program websites.
At DubLi.com or at Partner sites powered by Ominto.com, consumers shop
at their favorite stores, save with the best coupons and deals, and earn
Cash Back with each purchase. The Ominto.com platform features thousands
of brand name stores and industry-leading travel companies from around
the world, providing Cash Back savings to consumers in more than 120
countries. Ominto's Partner Programs offer a white label version of
the Ominto.com shopping and travel platform to businesses and
non-profits, providing them with a professional, reliable web presence
that builds brand loyalty with their members, customers or constituents
while earning commission for the organization and Cash Back for shoppers
on each transaction.
For more information, please visit Ominto's corporate website http://inc.ominto.com.
This press release contains forward-looking statements that involve
substantial risks and uncertainties. These include statements about
Ominto's expectations, beliefs, intentions or strategies for the future,
which are indicated by words or phrases such as "anticipate," "expect,"
"intend," "plan," "will," "believe," "projects," "could," "would," and
similar expressions. You can also identify them by the fact that they do
not relate strictly to historical or current facts. The forward-looking
statements reflect Ominto's current view about future events and are
subject to risks, uncertainties and assumptions. Because forward-looking
statements relate to the future, by their nature, they are subject to
inherent uncertainties, risks, and changes in circumstances that are
difficult to predict. Ominto may not actually achieve the expectations
disclosed in the forward-looking statements and you should not place
undue reliance on Ominto's forward-looking statements. These
forward-looking statements involve risks and uncertainties that could
cause actual results or events to differ materially from the
expectations disclosed in the forward-looking statements, including, but
not limited to: risks related to our ability to continue as a going
concern being in doubt; Ominto's inability to generate enough customers
or enough purchasing activity for our shopping websites; Ominto's
inability to establish and maintain a large growing base of Business
Associates; Ominto's failure to adapt to technological change; increased
competition; increased operating costs; changes in legislation
applicable to Ominto's business; Ominto's failure to improve our
internal controls; and Ominto's inability to generate sufficient cash
flows from operations or to secure capital to enable us to maintain our
current operations or support our intended growth; along with other
risks and potential factors that could affect Ominto's business and
financial results identified in Ominto's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the
fiscal year ended September 30, 2016.
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For Ominto, Inc.
Source: Ominto, Inc.
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