Zoomer magazine reports $402k loss on $1.7 million in revenue

ZoomerMedia Limited has announced that for the quarter ended September 30, 2008, the Company had revenue (including its magazine) of $2,539,172 and expenses of $3,214,022 with a net loss after tax of $674,850. These results are coincident with the launch of Zoomer magazine; the company says they are in line with the company's 2009 business plan.

Data released for the publishing side indicate the loss for the quarter on the magazine was approximately $402,000, including revenue for the associated website. Essentially, it means that the startup is responsible for about 2/3 of the quarterly loss.

Before the company was taken over by entrepreneur Moses Znaimer, and before the magazine was launched, the comparable quarter ended September 30, 2007 showed revenue of $1,296,090 and expenses of $1,224,381 with a net income after tax of $71,709.

According to a release by the company, magazine advertising revenue for the quarter was $1,067,698 versus $868,237 for the comparable quarter last year. This increase of $199,461 (23.0%) is a result of increased advertising pages sold in the re-launched version of Zoomer magazine. Subscription revenue was $300,026 versus $395,124 for the comparable quarter last year. "This decline of $98,098 (24.1%) is attributable to the decline in our subscriber base," the company said, essentially acknowledging that some of the previous subscribers to CARP magazine, from which Zoomer was evolved, have fallen away. Revenue from the revitalized website was $354,882; the company said that page views had increased 60% in the past year.

• Circulation expenses were $140,494 versus $64,880 for the comparable quarter last year, an increase of $75,614 (116.5%) due to significant circulation expenses incurred in newsstand and other promotion of the relaunch of Zoomer magazine while no such expenditure was incurred in the comparable quarter last year.
• Editorial expenses $594,970 versus $216,497 for the comparable quarter last year, an increase of $378,473 (174.8%) due to additional personnel hires for the re-launch of the magazine as well as increased expenditures for freelance writers and photographers in the premiere issue of the re-launched magazine.
• Production expenses were $813,182 versus $540,504 for the comparable quarter last year, an increase of $272,678 (50.4%) as a result of printing and distributing a significantly larger re-launch issue of Zoomer magazine including 50,000 newsstand copies.
• Sales expenses were $576,404 versus $144,252 for the comparable quarter last year, an increase of $432,152 (299.6%). As at September 30, 2008, the Company had cash and short term deposits on hand of $1,107,851 (June 30, 2008 - $2,233,536) and working capital (excluding the current portion of deferred revenue) of $2,675,174 (June 30, 2008 - $2,887,318).

Zoomer was launched this fall and says it has a paid circulation of approximately 190,000 and places a further 50,000 copies on newsstands; as a result total paid circulation is probably in the area of 225,000. Aside from Zoomer, the company's key property is the website 50plus.com . It also manages CARP, Canada's association for the 45+, with 350,000 members.

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