A strategic decision by Jasons Travel Media to shift the production of its
Motel sector products and services forward one month has skewed the outcome
of its interim result, along with the usual year-on-year comparisons.
The production of the annual Motel sector online and print publications is
Jasons largest single income generator, traditionally representing around one
third of its annual revenue. Moving the billing of these from the end of
September to the end of October means more than $3.3M of revenue will now be
accounted for in the second half of the financial year rather than the first.
"The peak holiday season essentially begins at Labour Weekend so it made
sense to ensure that we had time to include as many of our 3000 plus
advertisers as possible in our Motel sector online and print publications and
extend our advertising selling period" says Chief Executive Kevin Francis.
"We realise this makes our interim result look unusual when compared to the
previous year''s interim profit figures, but we''re prepared to risk looking
poor on paper in order to better service and support our biggest single
market during this crucial period. Our end-of-year result will not be
impacted at all by this change in production and billing cycle."
"At a time where consumers are utilising an increasing number of digital
marketing and telecommunications options, Jasons continues to track
consistently strong support for its printed tourism brochures, directories
and online offerings. Print is not dead: The travel market continues to
access information through both digital and physical channels. Jasons focus
on delivering an integrated product and service mix to the market is a
powerful option for advertisers experiencing challenging revenue generation
with margins undercut by multiple external commission arrangements."
During the last six months, Jasons has streamlined its internal business
divisions, lifted its online and digital presence and improved the quality
and distribution of 69 of its own branded publications.
In November 2012, Jasons further expanded its tourism brochure distribution
network by installing brochures and booklet display units airside at Auckland
International and Domestic Airports. This new initiative immediately puts
Jasons Travel Media advertisers right in front of inbound visitors from all
over the world.
A new real-time warehouse tracking system essential for evaluating and
providing cost-effective marketing strategies and solutions for advertisers
has been installed in the company''s distribution centres in Auckland,
Christchurch and Queenstown. Jasons has also launched its new iPhone and iPad
apps, now downloaded by over 7400 users across more than 50 countries.
In addition, Web browsers can now book campervan and rental cars anywhere in
the world online using the Jasons website and in December 2012, consumers
will be able to search "the rest of the world'' for holiday accommodation
options.
Key financial results for the interim period include Consolidated Revenue of
$2.891M (last half year $7.231M), EBITDA loss of $1.148M (last year profit
of $2.074M) and Net Loss before Tax of $1.487M (last half-year NPBT $1.596M).
Jasons has continued its drive to reduce debt, with overall debt improving
from $4.75M in October last year to $3.45M in October this year.
As indicated to shareholders at the Shareholders'' Annual Meeting in
September, the Jasons balance sheet is continuing to return to better health.
By the end of the year, the year-end profit is expected to be greater than
that posted for last year, but less than that forecast in the Annual Report.
"We fully expect to deliver better year-end results than last year, however,
the tourism market remains depressed and the motel sector is the worst
performing of all accommodation tourism sectors. And unlike last year,
Jasons will not receive an insurance contribution to offset the effects of
disturbance to the company''s distribution networks in Christchurch."
"The good news is that despite a challenging external environment, Jasons
enjoys strong cash flow and continues to reduce debt. More products and
services coming online in the second half of the year and further integration
of our sales and distribution processes will put us in an even better
position to take advantage of new opportunities to move our company and our
advertisers forward with confidence."
In line with the reinvestment strategy communicated to shareholders earlier
this year, the Jasons Board has decided not to pay an interim dividend.
For further information please contact:
Kevin Francis, CEO
Tel: 09 912 8411
Mob: 021 822 100
John Sandford, Chairman
Mob: 021 926 942
End CA:00231078 For:JTM Type:HALFYR Time:2012-12-13 12:56:29