Axia Reports Q1 2013 Results

CALGARY, May 14, 2013 /CNW/ - Axia NetMedia Corporation (Axia) today reported its results for the three months ended March 31, 2013.

Q1 2013 FINANCIAL AND OPERATIONAL HIGHLIGHTS

  • Customer connections grew 22% to 8,974 from 7,373.

  • Revenue across Axia's business units* totaled $26.3 million up 12% from $23.5 million a year ago.

  • Business unit* EBITDA totalled $6.9 million up 43% from $4.8 million in Q1 2012.

  • In France, Covage NGN Services revenue of $11.9 million grew 23% from $9.6 million in Q1 2012. Growing revenue and stable operating costs resulted in EBITDA of $3.4 million up 118% from $1.5 million in Q1 2012.

  • Axia's share of OpenNet's net income was $3.2 million or $0.05 per share in Q1 2013 compared to $1.0 million or $0.02 per share in Q1 2012. OpenNet had 325,213 end users compared to 133,000 a year ago.

  • EPS of $0.10 compares to $0.09 in Q1 2012.  Q1 2013 EPS includes $0.03 from a fibre sale in Alberta. Q1 2012 EPS includes $0.05 related to a gain from a purchase transaction in France.

* On January 1, 2013, Axia adopted International Financial Reporting Standards (IFRS) 11, Joint arrangements, which changed the reporting for Axia's Covage business unit from proportionate consolidation to equity accounting.  To aid in the analysis of the business, Axia has provided a business unit summary which includes 100% of the financial and operational results of Axia North America, Covage and Xarxa Oberta.  Please see the unaudited condensed consolidated interim financial statements and related Management's Discussion & Analysis (MD&A) for more details.

The unaudited condensed consolidated interim financial statements for the three months ended March 31, 2013 and related MD&A have been reviewed and approved by Axia's Audit Committee and Board of Directors. Axia recognizes that the majority of its investors are now accessing Axia's corporate and financial information either through pushed news services, directly from ir.axia.com or SEDAR. Thus, Axia has prepared this truncated news release to alert investors to its results and that a more detailed explanation and analysis is readily available in the MD&A. These reports have been filed on SEDAR at www.sedar.com and also posted at ir.axia.com.

Notice of Conference Call

Axia will hold a conference call with the investment community on Tuesday, May 14, 2013 at 9 a.m. (Eastern), 7 a.m. (Mountain). To participate in the conference call, please dial (647) 427-7450 in Toronto and internationally. If you are connecting from other parts of Canada, dial 1-888-231-8191. Please call ten minutes prior to the start of the call. In addition, a live webcast (listen only mode) of the conference call will be available at: http://www.newswire.ca/en/webcast/detail/1147937/1253077

A replay of the conference call will be available at (416) 849-0833  or 1-855-859-2056, passcode 46622797 from 6 p.m. (Eastern) Tuesday, May 14, 2013 to midnight (Eastern) Tuesday, May 21, 2013 or through the webcast archives at www.newswire.ca.

About Axia

Axia sells services over fibre optic communications infrastructure in jurisdictions that have implemented the Axia NGN Solution.  To date, Axia has networks in Alberta, France, Singapore, Spain and Massachusetts.  Axia trades on the Toronto Stock Exchange under the symbol "AXX".

This News Release contains forward-looking statements, including, without limitation, statements containing the words "should", "believe", "anticipate", "may", "plan", "will", "continue", "intend", "expect", "estimate" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. These statements are based on our current expectations, estimates, forecasts and assumptions about the operating environment, economies and markets in which we operate and are subject to important assumptions, risks and uncertainties that are difficult to predict. Examples of these statements would include those where Axia forecasts its success and timing in winning new NGN business, the timing of completion and estimated total costs of our networks, the revenues and operating costs associated with these networks over time, and Axia's ability to generate future cash flows and avail itself of other financing alternatives given current market conditions. The assumptions, risks and uncertainties that could cause actual results to differ materially from the forward-looking information, include, but are not limited to, changes in customer markets, changes in demand for our services, our inability to deliver services in a timely and cost efficient manner, technological change, general economic conditions and other risks detailed from time to time in our ongoing filings with the Canadian securities regulatory authorities, including those in our Annual Information Form, which filings can be found at www.sedar.com. Given these assumptions, risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise.

 

SOURCE: Axia NetMedia Corporation

For further information:

please visit Axia's website at www.axia.com, or contact:

Glenn Jamieson
Investor Relations
Axia NetMedia Corporation
(905) 582-6169
glenn.jamieson@axia.com

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Axia NetMedia Corporation

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