BOCA RATON, Fla.--(BUSINESS WIRE)--
Ominto, Inc. (OMNT), a growth company with global operations in the e-commerce, marketing, and entertainment industries, today reported financial results for the fiscal third quarter and nine months ended June 30, 2017.
Michael Hansen, Chief Executive Officer, stated, “We are pleased with the continued acceptance of our Dubli.com product worldwide, exhibited by our significant growth in revenue. The quarter included several non-recurring, extraordinary costs that offset our favorable revenue growth. We feel the business is making progress as we continue to invest in our Dubli.com product, build our marketing capabilities around the world and invest in additional R&D related to future growth. We also continue to be diligent in managing our costs and in our evaluation of further opportunities for cost efficiencies.”
Mr. Hansen continued, “We continue to focus on adding new stores to our global shopping website as well as additional savings and discounts. We are also pleased with the launch of VIP Lounge in April which has added higher margin products and services to the site as well as the launch of the luxury brands page in June that has been provided us with a new shopping demographic of customers. We are confident in our model as we enter the most important shopping season of the year.”
Fiscal Third Quarter Results
Revenue increased by $10.4 million or 261% to approximately $14.4 million in the third fiscal quarter of 2017, versus approximately $4.0 million in the prior year comparable period. Contributing to this revenue increase was higher sales volume of membership subscription fees for the Company’s VIP Lounge, launched in April 2017.
Gross profit was approximately $4.0 million and $2.3 million for the three months ended June 30, 2017 and 2016, respectively. The $1.7 million improvement consisted of an increase in revenues of $10.4 million partially offset by an increase in cost of revenues of $8.7 million. Gross profit as margin was approximately 28% and 57% during the three months ended June 30, 2017 and 2016, respectively. The gross margin decrease was related to membership sales at a discount and other incentives.
Net loss from continuing operations was approximately $1.6 million in the third quarter of 2017, or a loss of $0.10 per share, compared with a net loss from continuing operations of approximately $1.9 million, or a loss of $0.16 per share, in the third fiscal quarter 2016. Loss from operations improved despite the increase in selling, general and administrative primarily due to non-recurring expenses related to accounting, legal and other professional fees related to SOX compliance as a result of the Company’s listing on the Nasdaq Capital Markets in March 2017.
Fiscal Year-to-Date Results
Revenue totaled approximately $28.1 million and $13.4 million for the nine months ended June 30, 2017 and 2016, respectively, an increase of 110%. Once again, contributing to the revenue increase was higher sales volume of membership subscription fees for the Company’s VIP Lounge, launched in April 2017.
Gross profit totaled approximately $8.5 million and $4.8 million for the nine months ended June 30, 2017 and 2016, respectively. Selling, general and administrative expenses were approximately $17.6. million and $12.0 million for the nine months ended June 30, 2017 and 2016, respectively. The increase was due to increases in selling, general and administrative as well as non-recurring accounting, legal and other professional fees related to SOX compliance as a result of the company’s listing on the Nasdaq Capital Market in March 2017.
Net loss from continuing operations was approximately $9.2 million in the first nine months of 2017, or a loss of $0.58 per share, compared with a net loss from continuing operations of approximately $7.0 million, or a loss of $0.59 per share, in the same period of the prior year.
About Ominto, Inc.
Ominto is a growing company with global operations in the e-commerce, marketing, and entertainment industries. The company owns or invests in strategic entities that provides value to its global customer base.
Ominto is a pioneer in global Cash Back and first to market in many regions of the world. At the core of Ominto’s business is Dubli.com, a global consumer Cash Back e-commerce digital marketplace. At Dubli.com or at Partner sites powered by Ominto.com, consumers shop at their favorite stores, save with the best coupons and deals, and earn Cash Back with each purchase. The Ominto.com website features thousands of brand name stores and industry-leading travel companies from around the world, providing Cash Back savings to consumers in more than 120 countries. Ominto’s Partner Programs offer a white label version of the Ominto.com shopping and travel website to businesses and non-profits, providing them with a professional, reliable web presence that builds brand loyalty with their members, customers or constituents while earning commissions for the organization and Cash Back for shoppers on each transaction.
For more information, please visit Ominto's corporate website http://ominto.com.
This press release contains forward-looking statements that involve substantial risks and uncertainties. These include statements about Ominto’s expectations, beliefs, intentions or strategies for the future, which are indicated by words or phrases such as “anticipate,” “expect,” “intend,” “plan,” “will,” “believe,” “projects,” “could,” “would,” and similar expressions. You can also identify them by the fact that they do not relate strictly to historical or current facts. The forward-looking statements reflect Ominto’s current view about future events and are subject to risks, uncertainties and assumptions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Ominto may not actually achieve the expectations disclosed in the forward-looking statements and you should not place undue reliance on Ominto's forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to: risks related to our ability to continue as a going concern being in doubt; Ominto’s inability to generate enough customers or enough purchasing activity for our shopping websites; Ominto’s inability to establish and maintain a large growing base of Business Associates; Ominto’s failure to adapt to technological change; increased competition; increased operating costs; changes in legislation applicable to Ominto’s business; Ominto’s failure to improve our internal controls; and Ominto’s inability to generate sufficient cash flows from operations or to secure capital to enable us to maintain our current operations or support our intended growth; along with other risks and potential factors that could affect Ominto's business and financial results identified in Ominto's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended September 30, 2016.