MyPhotoAlbum Inc.
FortuneCity.com Inc.: Reports 2005 Operating and Financial Results
Ad hoc announcement transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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New York, March 31, 2006 — FortuneCity.com Inc. (‘FortuneCity’) announced
today improved operating and financial results for 2005.
FortuneCity showed improved operating and financial results for the twelve
months ending December 31, 2004. The Company’s 2004 Net Loss improved to
($0.01) per share compared to ($0.02) in 2004. Total revenue for 2005
remained flat at $2,978,000, compared to $2,998,000 in 2004. The share of
revenue derived from the Company’s paid subscription services was 33% of
total revenue for both 2005 and 2004, while revenue from online media sales
decreased from 67% of total revenue in 2004 to 65% in 2005.
The 2005 operating loss was reduced to $586,000, a reduction of 78%
compared to $2,657,000 in 2004. 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 $2,146,000 in 2005, a
reduction of 54% compared to $4,653,000 in 2004. The net loss was
$461,000, a 51% improvement compared to a net loss of $945,000 in 2004.
The Company continued its successful development of MyPhotoAlbum, the
internally developed online photo and video sharing website. The memorable
MyPhotoAlbum brand currently confirms in excess of 15,000 new registrations
per month without advertising expenditures and is highly regarded for its
personalization, sharing and communication tools. MyPhotoAlbum has over
175,000 active users that have uploaded more than 20 million photos. The
Company currently earns revenue from advertising and sponsorships, photo
and greeting card printing services, and a subscription based Club
membership for users seeking additional software tools, disk storage and
special features.
The Company’s decision to sell its paid web hosting asset was motivated by
recognizing FortuneCity’s limited resources would make it difficult to
compete in the increasingly competitive and consolidating shared server
hosting market. The Company will earn $1.13 million from the sale of its
web hosting customer base. FortuneCity has held the valuable number one
rank on Google for the keyword ‘web hosting’ for more than two years in
addition to many other important positions on the leading search engines.
The well respected FortuneCity brand name combined with its widespread
search engine rankings will allow the Company to continue marketing web
hosting services through a marketing agreement that provides in excess of
50% of the hosting revenue during the customer’s first year of service. On
an annualized basis, the marketing agreement is expected to yield greater
net cash flow than prior to the transaction.
FortuneCity elected to accept an offer to sell Ampira GmbH, its wholly
owned German subsidiary, as part of its continued effort to focus its
business activities in the North American market. While the German
business represented twenty percent of the Company’s revenues, it did not
contribute positive cash flow.
Contact:
Contact:
Peter Macnee
President & CEO
investor-relations@corp.fortunecity.com
+1-212-981-8624
(c)DGAP 31.03.2006
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language: English
emitter: FortuneCity.com Inc.
322 8th Avenue, 11th Floor
New York, NY 10001 Vereinigte Staaten von Amerika
phone: +1 212 981-8600
fax: +1 212 981-8125
email: investor-relations@corp.fortunecity.com
WWW: www.fortunecity.com
ISIN: US34969P1021
WKN: 919383
indexes:
stockmarkets: Geregelter Markt in Frankfurt (General Standard); Freiverkehr
in Hannover, Düsseldorf, Stuttgart
End of News DGAP News-Service
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