eMedia Networks Highlights Growth Strategy and Provides Fiscal 2009 Guidance



    
    eMedia to Leverage its Low Cost Operating Platform and Introduce New
    Products
    

    VANCOUVER, Sept. 30 /CNW/ - eMedia Networks Corp. (EMM.v), a leading
provider of music for retail and business environments, is providing an update
on its progress and guidance for the current 2009 fiscal year. eMedia
manufactures, markets and services its proprietary audio player to customers
on two-to-five year contract terms.
    Following its recent fiscal 2008 annual general meeting, the Company
disclosed a 29% increase in subscribers over the prior year. For the most
recent quarter ending June 30, 2008, eMedia  Networks reported a total of
3,946 subscribers. Revenues compared to the prior year and  the most recent
quarter were up 15% and 19%, respectively. The Company delivered strong
subscriber growth with no corresponding increase in headcount. The Company's
2008 fiscal year ended March 31, 2008.

    
    Growth through new markets
    --------------------------
    

    The Company recently completed a comprehensive strategic review. As a
result, the Company  expects to introduce two new products to grow and
diversify its subscriber base while increasing its average revenue per
subscriber (ARPU). eMedia also expects to continue to enter new vertical 
markets by expanding its sales efforts beyond apparel retailers, a segment
with which the  Company has had considerable success. During fiscal 2008, the
company successfully won  contracts in the gaming and entertainment segment as
well as shopping malls and restaurants.
    "We will be aggressive in exploiting our quality and cost advantage in
both the US and Canada," said Darren Reiter, CEO. "We are completing
development on a new audio player as well as a new video player which we
believe will be well-received by new and current clients seeking to increase
sales and build their in-store brands."

    
    Growth through new products
    ---------------------------
    

    eMedia intends to double its product portfolio through the introduction
of a video player, expected during Q3. The video player will be designed to
provide a low-cost solution for those retailers and businesses interested in
digital signage. It will complement the Company's current audio product (The
emPlayer) or exist on its own. According to the latest survey from PQ Media's
Alternative Media Forecast, the average annual growth rate for digital signage
is forecasted to be 22 percent for the next four years through 2012. Northern
Sky Research estimates global digital signage installations to grow to 850,000
sites by 2018 from 210,00 sites in 2007. A 2007 study by OTX suggests that
digital signage catches people's attention better than any other media
including billboards, magazines or television. This and other research
suggests digital signage may become a preferred alternative to print media
such as posters because of the ability to broadcast motion graphics and other
custom moving pictures and content over time.
    "The market for digital signage is a natural fit for us: it offers
attractive growth possibilities and may well generate higher margins than our
current audio offering," said Jasvir ("Bill") Athwal, CFO. "Once our video
product is available, we will have an additional revenue stream to grow ARPU
and achieve our desired subscriber levels."

    
    Fiscal 2009 guidance
    --------------------
    

    During the Company's 2008 annual general meeting, the Company announced
it intends to achieve fourteen to sixteen percent revenue growth and fifteen
to seventeen percent subscriber growth for the current fiscal year. It also
announced that it expects to achieve profitability at 5,500 subscribers (the
"break-even subscriber level").

    
    About eMedia Networks International Corp.
    -----------------------------------------
    

    eMedia provides custom music programming for in-store retail brands and
other consumer environments. Since 1991, eMedia has provided an end-to-end
audio solution for retailers that require music from fully-licensed major
label artists to play in their stores. Through its low-cost emPlayer audio
product, eMedia serves over 3,900 subscribers in North America. emPlayer is a
proprietary audio player capable of playing CD-quality music and custom audio
content from playlists controlled on-site or remotely through the internet.
The Company trades on the TSX Venture Exchange under the symbol EMM. For more
information, visit www.emedianetworks.com

    
    Forward-Looking Statements Safe Harbor
    --------------------------------------
    

    This press release contains forward-looking statements that we are
establishing our full year 2009 guidance; that we will build on the momentum
created in 2008; that we will continue to build on this momentum in 2008 and
deliver value to our shareholders; that we have the right strategy, clear
operational focus and the financial discipline to achieve eMedia's eventual
profitability; that we are getting more competitive in the marketplace and
learning how to better use our scale to our competitive advantage; that in
fiscal 2009 we will grow on both the top and bottom lines; that we anticipate
new products to result in stronger sales growth and product mix gains, which
will lead to improved margin performance in 2009 and beyond; our 2009
guidance, in particular, expected revenue growth and product mix gains will
leverage overhead costs and increase operating margins, that the change in our
product mix is a key driver in our ability to deliver higher sales at higher
margins. These forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those predicted in any
such forward-looking statements. Such factors, include, but are not limited
to, continued higher input costs, pricing actions, increased competition, our
ability to differentiate our products from our competitors, increased costs of
sales, unexpected manufacturing issues, regulatory actions or delays,
unanticipated expenses such as litigation or legal settlement expenses, a
shift in our product mix to lower margin offerings, risks from operating
internationally and tax law changes. For additional information on these and
other factors that could affect our forward-looking statements, see our
filings with the TSX, including our most recently filed quarterly report at
SEDAR.com. We disclaim and do not undertake any obligation to update or revise
any forward-looking statement in this press release.

    TSX Venture Exchange has not reviewed and does not accept any
    responsibility for the adequacy or accuracy of this release.





For further information:

For further information: Media and Investors, Darren Reiter, CEO, (604)
742-3344, reiter@emedianetworks.com, Web site: http://www.emedianetworks.com;
Address: Suite 200, 1862 West Broadway, Vancouver, British Columbia V6J 1Y9

Organization Profile

EMEDIA NETWORKS INTERNATIONAL CORP.

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