BOCA RATON, FL -- (Marketwire) -- 05/11/12 -- MediaNet Group Technologies, Inc. (OTCQB: MEDG) (PINKSHEETS: MEDG), a global marketing company that provides consumers around the world with a variety of innovative, online shopping and entertainment opportunities, today announced financial results for the fiscal second quarter and six months ended March 31, 2012.
Michael Hansen, President and Chief Executive Officer of MediaNet Group stated "We further improved upon our first quarter surge in revenue growth by 46% during the second quarter as a result of the continued enthusiasm for our auctions. We continue to increase traffic and build our DubLi brand with unprecedented growth. The sales growth that began in the third and fourth quarters of 2011 has now grown to $29.4 million in the second quarter of 2012 and $49.5 million for the first half of fiscal year 2012. We are particularly pleased with our growth during this quarter, given that it is typically the weakest quarter of the year in all shopping segments. We expect our growth to continue to increase even more rapidly in the third quarter of 2012 due to the success of the new Xpress auction format, the growth of our network marketing associates and increased marketing efforts that include our new infomercial now airing in select markets in the U.S. Our strategy, to build sales volume and increase web traffic, is beginning to attract greater opportunities with business partners such as Publimedia, a division of Grupo Gestevision Telecinco, S.A., the top-rated television station in Spain. We are continuing to expand our investment in marketing, especially discounts and bonuses to consumers which are very effective in rapidly increasing our sales volume. Our investment in building our infrastructure is continuous and designed to support our future growth and development. We believe that our marketing efforts during 2012 will drive conversion to higher margin products and increased profitability."
For the second quarter ended March 31, 2012, revenues increased 600% to $29.4 million compared to $4.1 million for the second quarter ended March 31, 2011. This is in line with the company's marketing strategy to attract traffic and business to our websites in order to drive incremental revenue from advertising and partner programs. Gross profit for the quarter was $0.2 million, or 1.0% of revenue, down 89% compared to $2.1 million, or 51% of revenue, in the same period of 2011. as a direct result of changing the format of the Xpress auction from low volume high margin goods, to high volume, low margin electronic gift cards. Net loss for second quarter was $2.9 million resulting in a loss per basic and fully diluted share of $0.01, as compared to a net loss of $0.8 million, or a loss per basic and fully diluted share of $0.00 in the second quarter of 2011. For the second quarter 2012, the weighted average number of basic and fully diluted shares outstanding was 361,481,056 and 374,563,284, respectively as compared to the same period of 2011, when the weighted average number of basic and fully diluted shares outstanding was 247,129,155 and 249,696,480, respectively. Net loss per share for both basic and fully diluted is computed on the weighted average number of basic shares outstanding because derivatives are considered anti-dilutive to net loss.
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