ASC 6.67% 1.6¢ adultshop.com limited

Announcement for nicleeson

  1. 259 Posts.
    Here ya go, this is only part A, the rest is at the ASX site.


    Preliminary Final Report & Revised Profit Forecasts

    Document date: Thu 05 Sep 2002 Published: Thu 05 Sep 2002 19:38:57
    Document No: 222545 Document part: A
    Market Flag: Y
    Classification: Preliminary Final Report
    ADULTSHOP.COM LIMITED 2002-09-05 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    The Directors of Adultshop.com Limited announce the Company's
    preliminary final result for the financial year ended 30 June 2002.
    The 2001/2002 financial year is the first financial year in which a
    consolidated profit and a positive EBITDA has been reported.

    Key Figures:

    2002F 2002A % DIFFERENCE
    JULY 01 JULY 01 ACTUALS TO
    - JUNE 02 - JUNE 02 FORCASTS
    FORCAST (1) ACTUAL
    $'000 $'000

    Revenue from Ordinary
    Activities 118,759 117,259 - 1.26%
    EBITDA 13,999 14,081 + 0.59%
    EBIT 7,217 7,258 + 0.57%
    Net Profit after Tax 5,632 5,716 + 1.49%
    Cash at End of 17,400 17,490 + 0.52%

    (1) The forecast includes 6 months of actual results to 31 December
    2001 plus 6 months of projections to 30 June 2002 (as released to the
    ASX on 13 May 2002).

    MAJOR FACTORS INFLUENCING THE YEAR'S RESULTS:

    AdultShop.com's online erotic entertainment business, Today's Success
    Pty Ltd, was the main contributor to revenue and profit growth
    during the 2001/2002 financial year. Since the acquisition of the
    business on 29 June 2001, online traffic generation strategies for
    its online erotic entertainment services have resulted in significant
    revenue growth.

    FINANCIAL OUTLOOK:

    Based on recent results and changes to the Company's operating
    conditions, including its billing solutions, the Directors advise
    that financial forecasts for the six month period ending 31 December
    2002 previously released to the market (1 3 May 2002) will not be
    achieved.

    The Company expects to record a net loss for the six month period
    (compared to a previously projected net profit after tax of $11.6
    million) and a reduction in its cash reserves from 30 June 2002. Cash
    reserves at 31 December 2002 are anticipated to be within the range
    of $10 - $12 million. This reduction is due to:

    * Trading losses for the first quarter. Note that the negative
    trading results are expected to be contained within the first quarter
    and the second quarter is anticipated to trade profitably. The EBITDA
    for the six month period to 31 December 2002 is anticipated to be in
    the range of $1 - $2 million.

    * Payment of 30 June 2002 liabilities, including an income tax
    payment of $2.1 million.

    * Cash reserves escrowed by an international credit card processor
    formerly contracted by the Company.

    The Company's online erotic entertainment division's membership base
    recorded exceptional growth in the six months ended 30 June 2002,
    resulting in the revenues and earnings referred to in the table
    above. Unfortunately, a consequence (if this growth was an increase
    in credit card processing costs, including levies for rejected
    transactions. If this had remained unchecked, the long term integrity
    and profitability of the online erotic entertainment business could
    have been jeopardised. Therefore, in the last fortnight, the Company
    made the decision to outsource its billing solution in order to
    protect the long term integrity and profitability of the online
    erotic entertainment business. A more stringent membership validation
    process, which is part of the new billing solution, substantially
    reduced the membership database. The database is now in the process
    of renewed growth.

    The reduction in membership database has a direct effect on revenues
    for the six month period ending 31 December 2002. Costs will also
    reduce, albeit by a smaller proportion as it will take some time to
    alter the division's cost structure, particularly member acquisition
    costs. The Directors remain confident in the long term profitability
    of the online erotic entertainment business division.

    The Directors caution that the length of the entertainment division's
    business cycle is such that they will not be in a position until
    November to better evaluate the results of the recent changes.

    For further details or comment, please contact:

    Malcolm Day Released by:
    MANAGING DIRECTOR Nancy Hackett
    AdultShop.com Limited INVESTOR RELATIONS MANAGER
    Phone: 61 8 9227 6777 Phone: 61 8 9227 6777
    Email: [email protected] Email: [email protected]




 
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