MediaNet Group Technologies Announces Record Revenues in Fourth Quarter and Full Year 2007 Financial Results
MARGATE, FL – April 14, 2008 -- MediaNet Group Technologies, Inc. (OTCBB: MEDG), operating the largest online mall and affinity program platform through its BSP Rewards subsidiary, today announced financial results for the fourth quarter and full year ended December 31, 2007.
For the year ended December 31, 2007, revenues were $1.2 million, an increase of approximately 177% as compared to $433,720 for all of 2006. The net loss for the year was $977,071, or a loss of $0.08 per basic and diluted share, as compared to a net loss of $1.1 million, or a loss of $0.11 per basic and diluted share, for 2006.
For the fourth quarter ended December 31, 2007, revenues were $435,703, an increase of 131% as compared to $188,663 for the fourth quarter ended December 31, 2006. The fourth quarter 2007 net loss was $339,933, or a loss per basic and diluted share of $0.03, as compared to a net loss for the fourth quarter of 2006 of $215,178, or a loss per basic and diluted share of $0.02.
Shares outstanding were 17,610,802 at year end December 31, 2007 versus 11,611,021 in the prior year period. The increase in shares outstanding at the end of 2007 as compared to the end of 2006 is directly related to the private placement of six million shares completed during the fourth quarter of 2007 and for other issuances of common shares related to stock-based compensation.
The Company also announced today that it processed $7 million of merchant transactions through its industry leading online mall during the fiscal year ended December 31, 2007, an increase of 40% as compared to $5 million in transactions for all of 2006. Merchant transactions processed through the mall produced $1 million in gross revenue for the year ended December 31, 2007, compared to $300,000 in the same period of the prior year, an increase of 233%, with the balance of the Company’s reported revenues derived primarily from web design and monthly recurring hosting services
Since announcing in February that it had reached 500,000 members, the Company has increased its membership as of March 31, 2008, to a total of 541,000. In addition, there currently are 750 merchants in the mall, which is an increase of 32% from 2006. Some of the 750 merchants include such names as Macy’s Target, Best Buy, Neiman Marcus, Sears, Office Depot, BP Oil, Darden Restaurants, Overstock.com, Walgreen’s, Safeway and Sears.
Commenting on the record financial results and improvements in performance metrics, Martin Berns, chief executive officer, stated, “Our results are indicative of our solid business model and growth strategy and its ability to move us closer to profitability. In particular, we are pleased that our revenue base has been shifting toward a higher quality, depth and breadth of clients with private branded malls. This is a clear demonstration of our ability to grow our client base among various industry segments while offering our member consumers incentives from the merchants they are already shopping at every day.”
Mr. Berns further commented, “Due to our web mall platform expansion in 2007, we had the opportunity to analyze and realign merchant partners, our branded mall clients and their respective member databases. Accordingly, we added and deleted merchants that did not offer sufficient rebates and clients that did not produce revenue in proportion to the cost involved in servicing them. These measures are aimed at producing more revenue at higher margins in 2008.”
About MediaNet Group Technologies, Inc.:
MediaNet Group Technologies, Inc. (OTCBB: MEDG), through its BSP Rewards division, has developed the largest online mall and affinity program platform. BSP builds, brands, customizes proprietary loyalty/rewards/mall programs for clients and organizations and for a value added element layered onto debit and stored value cards. Companies and organizations enroll their members into the program and BSP cross-markets them to its entire database.
The Company generates product purchases from over 750 participating mall merchants including the nation’s largest retailers as well as gift cards and a large discount catalog. With over 60 web malls already developed and in use, BSP Rewards currently serves more than 500,000 registered users. The Company offers affordable, immediate implementation, delivered as rich turnkey enterprise solutions for corporations interested in expanding their web presence and enhancing customer relations -- turning operational costs into profit centers.
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BSP Rewards, Inc, is a wholly-owned company of MediaNet Group Technologies, Inc. MediaNet Group Technologies is a publicly held Company (OTCBB: MEDG) that encompasses an integrated group of operating divisions that revolve around the many aspects of technology and media including, branded rewards programs web portal programs, television and video production and intellectual properties.
Legal Notice Regarding Forward-Looking Statements: "Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. MediaNet Group Technologies, Inc. disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions (including in the information technology and financial information industry), actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, changes in our business strategies.
