Market faxts Limited year end results to June 2000
The directors of Market Faxts Limited today announced full year results
for the year ended 30 June 2000 of a loss of $2.06m before abnormals
on revenue of $1.48m.
C.E.O. Christopher Gosselin commented that notwithstanding the loss,
Market Faxts had made significant progress in the past twelve months,
and was well placed to benefit from the capital, structural and management
changes that had occurred during the past year.
Mr Gosselin said that the financial year to June 2000 had been a turning
point for Market Faxts, noting that during that time the company had completed
two capital raisings, listed on the ASX, and doubled its staff numbers.
More importantly Market Faxts has established a structure which should
assist the Company in maximising the potential of both of the “Infomediary”
web sites which it has developed, and realise the strength of the underlying
business model. Both Infochoice.com.au and Infarmation.com.au provide
a range of independent content for specific market and community groups,
giving consumers free access to credible, reliable information, allowing
them to make better and more informed purchasing decisions as a result.
Market Faxts does not rely on advertising revenue to earn revenue, enhancing
the credibility and independence of the content. Instead suppliers are
charged fees for a range of value added marketing and research services,
with the upside that e.commerce transactions conducted as a result of
consumers visiting the site attract additional commissions and fees.
Significant events during the year included expanding the number of Infochoice
categories to include brokerchoice.com.au and marginlendingchoice.com.au
to add to bankchoice.com.au and phonechoice.com.au. User sessions to the
various Infochoice and Infarmation sites have almost doubled in the past
six months.
Distribution to third party sites continued to widen, with content alliances
with winNET (Infarmation), Ozemail, Austar, Shesaid and the Australian
Consumer’s Association adding to existing distribution through Fairfax’s
drive.com.au, News Interactive, Telstra, BRW and Ninemsn.
Financially Market Faxts remains in a strong position, having raised
$10m in December, it retained a cash balance of over $7m as at 30th June.
Directors anticipate that in the year to June 2001 losses will continue
as the various Infochoice sites are developed and released, with current
expectation for a loss of $1.78m on revenues of $3.34m.
Based on current management and operational assumptions Market Faxts
will be cash positive on a monthly basis in the first quarter of FY 2002,
or in approximately twelve months time, resulting in that year being profitable.
At that time it is expected that the company will still maintain in excess
of $5m from the capital raised last December, prior to any costs related
to the bid from Telco Ltd. Directors advise that these projected figures
are based on the best information and assumptions available to them, and
are also subject to the usual and unpredictable market forces.
Looking ahead Market Faxts is intending to continue to expand the categories
and content in both Infochoice and Infarmation, and expects to launch
Infochoice sites covering travel, insurance, funds management, health
and ISP’s over the next few months. These are expected to increase user
sessions further, enhance the users on line experience, and increase revenue
from listing fees.
Directors are seeing a significant number of opportunities arising from
the development of the infomediary role, which will allow integration
of both on line and offline commerce and revenues. The company is confident
that its model – which does not rely on being a retailer or e.commerce
– will continue to evolve. Both these have been an issue for many on line
companies and e.tailers, and whilst Market Faxts will benefit from e.commerce
as it develops in the future, it is not dependant on it for survival in
the meantime.
Directors are expecting that the bidders statement from Telco detailing
the full terms of their offer will be dispatched to shareholders in the
next week, and directors will be considering their recommendation at that
time. Meanwhile shareholders should take no action in respect of Telco’s
offer.
For more information:
Chris Gosselin
Chief Executive Officer
InfoChoice Limited
PH: [02] 9247-6788
MOBILE: [0411] 537 830
Tim Allerton
City Public Relations
PH: [02] 9281 7272
InfoChoice.com.au is Australia’s
leading infomediary, providing independent, comparative data for consumers
in the banking, telecommunications, investment, travel and insurance markets.