Revenue Increased 261% to $14.4 Million Over Prior Year Comparable
Period, Revenue for the Nine Month Period Increased 110% to $28.1 Million
- Continued Global Acceptance of Dubli.com Product -
- VIP Lounge Membership Strengthening Cash Back Offerings -
BOCA RATON, Fla.--(BUSINESS WIRE)--
Ominto, Inc. (Nasdaq: OMNT), a growth company with global operations in
the e-commerce, marketing, and entertainment industries, today reported
financial results for the fiscal third quarter and nine months
ended June 30, 2017.
Michael Hansen, Chief Executive Officer, stated, "We are pleased with
the continued acceptance of our Dubli.com product worldwide, exhibited
by our significant growth in revenue. The quarter included several
non-recurring, extraordinary costs that offset our favorable revenue
growth. We feel the business is making progress as we continue to invest
in our Dubli.com product, build our marketing capabilities around the
world and invest in additional R&D related to future growth. We also
continue to be diligent in managing our costs and in our evaluation of
further opportunities for cost efficiencies."
Mr. Hansen continued, "We continue to focus on adding new stores to our
global shopping website as well as additional savings and discounts. We
are also pleased with the launch of VIP Lounge in April which has added
higher margin products and services to the site as well as the launch of
the luxury brands page in June that has been provided us with a new
shopping demographic of customers. We are confident in our model as we
enter the most important shopping season of the year."
Fiscal Third Quarter Results
Revenue increased by $10.4 million or 261% to approximately $14.4
million in the third fiscal quarter of 2017, versus approximately $4.0
million in the prior year comparable period. Contributing to this
revenue increase was higher sales volume of membership subscription fees
for the Company's VIP Lounge, launched in April 2017.
Gross profit was approximately $4.0 million and $2.3 million for the
three months ended June 30, 2017 and 2016, respectively. The $1.7
million improvement consisted of an increase in revenues of $10.4
million partially offset by an increase in cost of revenues of $8.7
million. Gross profit as margin was approximately 28% and 57% during the
three months ended June 30, 2017 and 2016, respectively. The gross
margin decrease was related to membership sales at a discount and other
Net loss from continuing operations was approximately $1.6 million in
the third quarter of 2017, or a loss of $0.10 per share, compared with a
net loss from continuing operations of approximately $1.9 million, or a
loss of $0.16 per share, in the third fiscal quarter 2016. Loss from
operations improved despite the increase in selling, general and
administrative primarily due to non-recurring expenses related to
accounting, legal and other professional fees related to SOX compliance
as a result of the Company's listing on the Nasdaq Capital Markets in
Fiscal Year-to-Date Results
Revenue totaled approximately $28.1 million and $13.4 million for the
nine months ended June 30, 2017 and 2016, respectively, an increase of
110%. Once again, contributing to the revenue increase was higher sales
volume of membership subscription fees for the Company's VIP Lounge,
launched in April 2017.
Gross profit totaled approximately $8.5 million and $4.8 million for the
nine months ended June 30, 2017 and 2016, respectively. Selling, general
and administrative expenses were approximately $17.6. million and $12.0
million for the nine months ended June 30, 2017 and 2016, respectively.
The increase was due to increases in selling, general and administrative
as well as non-recurring accounting, legal and other professional fees
related to SOX compliance as a result of the company's listing on the
Nasdaq Capital Market in March 2017.
Net loss from continuing operations was approximately $9.2 million in
the first nine months of 2017, or a loss of $0.58 per share, compared
with a net loss from continuing operations of approximately $7.0
million, or a loss of $0.59 per share, in the same period of the prior
About Ominto, Inc.
Ominto is a growing company with global operations in the e-commerce,
marketing, and entertainment industries. The company owns or invests in
strategic entities that provides value to its global customer base.
Ominto is a pioneer in global Cash Back and first to market in many
regions of the world. At the core of Ominto's business is Dubli.com, a
global consumer Cash Back e-commerce digital marketplace.
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 website 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 website 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 commissions for the organization and Cash Back for
shoppers on each transaction.
For more information, please visit Ominto's corporate website http://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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Source: Ominto, Inc.
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