NTN Buzztime, Inc. Reports Third Quarter 2014 Results
CARLSBAD, Calif., November 6, 2014 — NTN Buzztime, Inc. (NYSE MKT: NTN) reported financial results for the third quarter ended September 30, 2014.
“Buzztime provides a unique entertainment and dining experience that enables venues to engage more deeply with patrons,” said Buzztime CEO Ram Krishnan. “We are designing new games to expand our audience and delivering this content through a transformed platform. As we grow our audience, we believe we will continue to unlock incremental revenue streams.
“During the third quarter of 2014, revenue grew 9% year-over-year, primarily due to customer transition from our classic to our BEOND platform. By September 30, 2014, BEOND installations increased to 859 locations, and conversions at Buffalo Wild Wings®, our largest customer, increased to 530 sites from 470 at the end of the second quarter. We continue to foster this strategic partnership to generate organic growth as Buffalo Wild Wings expands locations.
“The casual dining and bar industry is large and ripe for change. Our advanced technology combined with our deep understanding of the customer experience positions us to grow with the market. In addition to the Buffalo Wild Wings rollout, we are deploying the BEOND platform in other existing and new venues. We continue to invest to expand our product portfolio with modern gameplay, premium services and new features. I am confident in our management team who will help spearhead these efforts to create long-term value for our customers as well as our shareholders.”
Results for the Third Quarter Ended September 30, 2014
Revenues for the third quarter of 2014 grew 9% year-over-year to $6.0 million, compared to $5.5 million for the same period in 2013, reflecting increased equipment revenue under sales-type lease agreements associated with the BEOND platform conversion. Direct costs were $2.3 million for the third quarter of 2014, compared to $1.5 million for the same period in 2013, up primarily due to equipment costs related to the BEOND platform deployment. Selling, general and administrative expenses were $4.9 million for the third quarter of 2014, compared to $4.0 million for the same period in 2013. The SG&A increase reflects the Company’s investment in key personnel as well as non-recurring items – a non-cash stock-based compensation in lieu of cash payment for consulting services and a severance payment – totaling $281,000. Net loss including this amount was $1.3 million or $0.01 per share for the third quarter of 2014, compared to net loss of $0.2 million or $0.00 per share in the same period a year ago.
As of September 30, 2014, the Company had $9.8 million in cash and cash equivalents compared to $5.5 million as of December 31, 2013.
The Company ended the third quarter of 2014 with 3,006 subscribing venues, compared to 3,220 as of September 30, 2013.
Management will review the third quarter financial results in a conference call today, November 6, 2014, at 4:30 p.m. ET.
To access the conference call, please dial (877) 307-1373, if calling from the United States or Canada, or (678) 224-7873, if calling internationally, and use passcode 28345665. A replay of the call will be available until November 13, 2014, which can be accessed by dialing (855) 859-2056, if calling from the United States or Canada, or (404) 537-3406, if calling internationally. Please use passcode 28345665 to access the replay.
The call will also be accompanied live by webcast over the Internet and accessible at the Company’s Web site at /.
This release contains forward-looking statements which reflect management’s current views of future events and operations, including but not limited to statements about our growth plans, product and platform development, new revenue, customer development, improved customer and consumer satisfaction and the number of locations, players and games. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include the risks of unsuccessful execution or launch of products, platforms or brands, risks associated with customer retention and growth plans, the impact of alternative entertainment options and technologies and competitive products, brands, technologies and pricing, adverse economic conditions, and the regulatory environment, failure of customer and/or player acceptance or demand for new or existing products, lower market acceptance or appeal of both existing and new products and services by particular demographic groups or audiences as a whole, termination of partnership and contractual relationships and technical problems or outages. Please see NTN Buzztime, Inc.’s recent filings with the Securities and Exchange Commission for information about these and other risks that may affect the Company. All forward-looking statements included in this release are based on information available to us on the date hereof. These statements speak only as of the date hereof and NTN Buzztime, Inc. does not undertake to publicly update or revise any of its forward-looking statements, even if experience or future changes show that the indicated results or events will not be realized.
NTN Buzztime, Inc. (NYSE MKT: NTN) is a leading bar and restaurant social entertainment and integrated marketing platform. Trusted by bars and restaurants in North America since 1985, Buzztime integrates trivia, card and sports games with in- and out-of-venue messaging and communication tools. With over 6 million player registrations on the Buzztime platform and over 60 million games played each year, Buzztime players spread the word and invite friends and family to their favorite Buzztime locations to enjoy evenings of fun and competition. With Buzztime entertainment and marketing solutions, bars and restaurants can turn casual visitors into regulars, and give patrons a reason to stay longer. For the most up-to-date information on NTN Buzztime, please visit / or follow us on Facebook or Twitter @buzztime.
IR AGENCY CONTACT:
Monica Chang/Kirsten Chapman, LHA
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