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Fourth quarter
The Company's investment in its organic insurance growth continued to accelerate in the fourth quarter where marketing costs of $651,000 were expensed related to its 24PetWatch gift program in North America and $203,000 were expensed related to one-time fees paid to U.K. aggregators upon the successful addition of a new policyholders compared to an aggregate of $708,000 expensed in Q4 2011 for these two programs. Other factors influencing the quarterly results were similar to those influencing the year as a whole.
Non-insurance segment results:---------------------------------------------------------------------------- For the year ended For the quarter ended---------------------------------------------------------------------------- Dec 31 Dec 31 Change Dec 31 Dec 31 Change($'000) 2012 2011 % 2012 2011 %----------------------------------------------------------------------------Revenue 14,705 10,926 35% 3,739 2,879 30%EBITDA(1) 746 (523) - 124 6 1,967%Profit/(loss) before taxes (841) (1,631) 48% (366) (286) (28%)Profit/(loss) after taxes (1,023) (1,684) 39% (437) (339) (29%)----------------------------------------------------------------------------(1) EBITDA, a non IFRS accounting measure, is profit before amortisation anddepreciation, interest and income taxes.
The non-insurance results consist of aggregate growth in the following:
Full year 2012
-- The Company's continued expanded reach with the North American animal welfare community. PetPoint had been licensed by 1,955 animal welfare organisations by December 31, 2012, an increase of 10% from those licensed at December 31, 2011 while 2.34 million intakes (animals entering the welfare organisations) and 973,000 adoptions were completed through PetPoint, an increase in intakes of 4% and adoptions of 9%. As of December 31, 2012, 87 animal welfare organisations were paying to licence PetPoint, the Company's cloud-based animal welfare management system.-- The continued expansion of its microchip and database products and services. The Company sold, in aggregate, 1.5 million RFID microchips in the United States, Canada and the United Kingdom, 14% increase in the number of microchips sold. Revenue from microchip sales increased 24% to $9.5 million. As a percentage of total non-insurance revenue, microchip revenue fell to 66% from 71%. Total individual pet and pet owner registrations in the 24PetWatch database surpassed 6.6 million by December 31, 2012, representing an increase of over 1.3 million registered cats and dogs, or 26%. The sale of ancillary products and services to the 24PetWatch database of pet owners accounted for $2.57 million in revenue, a 30% increase.-- The expanded reach of Petango.com which, according to comScore.com, attracted more than 11 million unique visitors and generated 268 million page views and the increased sales of both Business to Business and Business to Consumer sales via thepetangostore.com which totalled, in aggregate, $1.43 million, a 62% increase.-- The increase in data publishing revenue increased significantly as a result of a data report agreement with Best Friends completed in the first quarter. Under the terms of the agreement, the Company provided Best Friends with national, regional and state reports on animal intakes and outcomes from 2009 through 2011 in exchange for $435,000. Under the terms of the agreement, Best Friends has an option until March 31, 2013 for 2012 reports at an additional price of approximately USD $250,000.
