CALGARY, Nov. 12, 2013 /CNW/ - Axia NetMedia Corporation (Axia) today reported its results for the three and nine month periods ended September 30, 2013.
Q3 2013 HIGHLIGHTS
- Customer connections grew 15% to 9,140 from 7,929 a year ago.
- Revenue across Axia's business units* totaled $26.5 million up 11% from $23.9 in Q3 2012.
- Business unit* EBITDA totalled $7.0 million up 14% from $6.2 million in Q3 2012. EBITDA, excluding the non-cash expenses in Corporate was $7.8 million.
- In France, Covage NGN Services revenue of $13.0 million grew 26% from $10.3 million in Q3 2012. EBITDA of $4.1 million is up 42% from $2.9 million in Q3 2012.
- In North America, NGN revenue continues to grow year over year and totaled $11.8 million an 11% increase from a year ago. EBITDA in North America remained stable.
- In Alberta, Axia's agreement with the Government of Alberta was extended from July 1, 2015 to June 30, 2018, on substantially the same terms as those governing the initial 10-year contract period.
- In Spain, Axia sold its 35% interest in Xarxa Oberta for $7.4 million (€5.3 million) on September 12, 2013. This resulted in a gain on sale of $1.1 million.
- In Singapore, Axia entered into an agreement to sell its 30% interest in OpenNet. Axia has invested $24.5 million (SGD$29.7 million) in OpenNet to date and will receive $31.0 million (SGD$37.8 million) resulting in a cash return of $6.5 million (SGD$8.1).
- Net income was a loss of $(2.3) million or $(0.03) per share compared to a profit of $3.3 million or $0.05 per share in Q3 2012. Net income, excluding the adjustments related to the sale of investments and the non-cash expenses in Corporate was $1.8 million or $0.03 per share.
Art Price, Chairman and CEO of Axia, commented "During the quarter, Axia continued to grow its customer base and NGN revenues in both France and Alberta. In Alberta, operations were sustained despite disruptions experienced during the major flood emergency. With continuing growth and completion of the significant transactions and agreements announced during the quarter, we are confident that Axia is strongly-positioned to maximize opportunities for the benefit of our shareholders".
* Axia's business unit summary includes 100% of the financial and operational results of Axia North America and Covage. 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 and nine month periods ended September 30, 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, November 12, 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:
A replay of the conference call will be available at (416) 849-0833 or 1-855-859-2056, passcode 75213082 from 6 p.m. (Eastern) Tuesday, November 12, 2013 to midnight (Eastern) Tuesday, November 19, 2013 or through the webcast archives at www.newswire.ca.
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, 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
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