MyPhotoAlbum Inc.
FortuneCity.com Inc. Reports 2004 Operating and Financial Results
Ad hoc announcement §15 WpHG
FortuneCity.com Inc.
FortuneCity.com Inc. Reports 2004 Operating and Financial Results
Ad hoc announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
——————————————————————————
New York, March 31, 2005 – FortuneCity.com Inc. (“FortuneCity”) announced
today improved operating and financial results for 2004.
FortuneCity showed improved operating and financial results for the twelve
months ending December 31, 2004. The Company’s 2004 Net Loss was
significantly improved to ($0.02) per share compared to ($0.11) in 2003.
Total revenue for 2004 was $4.1 million, an increase of 11% compared to $3.7
million in 2003. The web service subscription revenue increased 41% and now
represents 24% of total revenue, an improvement from 19% in 2003. Revenue from
online media sales was 76% of the total versus 81% in 2003.
During 2004 and for the first time in several years, FortuneCity took a more
aggressive posture aimed at generating future growth. The Company invested
significant effort in establishing new web services to complement its existing
services and to engage the sizable internet traffic and user base controlled
by FortuneCity web properties. In addition to its original free advertising
supported services and the standard shared server paid web hosting services,
the Company now offers a wide variety of web services including the fast
growing MyPhotoAlbum.com, an online photo sharing service, and MyBlogSite.com,
a new personal online publishing service.
Since its official launch in the second half of 2004, MyPhotoAlbum has
registered over 60,000 users that have uploaded close to 2 million digital
photos. MyBlogSite, launched in February 2005, has already registered over
13,000 users. The two services combined are registering over 1,000 new users
each day, with total monthly registrations across all FortuneCity web
properties approaching 50,000 per month. The Company intends to continue to
grow its free services with the objective of building a large base of loyal
users to which it can efficiently sell over time one or more paid subscription
services.
The 2004 operating loss, not including office lease termination costs, was
reduced to $1.8 million, a reduction of 48% compared to $3.5 million in 2003.
The improved operating loss was achieved as a result of continued reductions
in operating expenses combined with the increase in total revenue. Operating
expenses were $4.4 million in 2004, not including lease termination costs, a
reduction of 5% compared to $4.6 million in 2003. The net loss was $945,000,
a 73% improvement compared to a net loss of $3.5 million in 2003.
Total cash consumed by operations continued to be gradually reduced during the
course of 2004. The Company consumed $0.5 million during the six months
ending December 31, 2004 and $0.7 million during the six months ending June
30, 2004 in operating activities, compared to $0.4 million during the six
months ending December 31, 2003 and $1.4 million during the six months ending
June 30, 2003. FortuneCity had one time cash costs of approximately $228,000
during 2004 in order to terminate its multi-million dollar long term office
lease liability in New York.
In September 2004, FortuneCity sold 100% of its shareholding in Springboard
Managed Hosting for $692,000 in cash. The transaction represented a 246%
return on FortuneCity’s original investment of $200,000 made in August 2001.
In 2003, the Company sold 10 million common shares for total proceeds of
$600,000 under a funding agreement entered into in July 2003 with its major
shareholder. The Company has available the right to draw down a further US$
640,000 (Euro 500,000) under this funding arrangement.
FortuneCity.com Inc.
322 8th Avenue, 11th Floor
New York, NY 10001
USA
ISIN: US34969P1021
WKN: 919383
Listed: Geregelter Markt in Frankfurt (General Standard); Freiverkehr in
Düsseldorf, Hannover und Stuttgart
End of ad hoc announcement (c)DGAP 31.03.2005
312003 Mär 05
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