TIO Reports Q1 2015 Financial Results

GROSS PROFIT INCREASED BY 194% YEAR OVER YEAR, TRANSACTIONS INCREASED BY 10% QUARTER OVER QUARTER

VANCOUVER, Dec. 17, 2014 /CNW/ - TIO Networks Corp. (TSX-V: TNC) today announced first quarter 2015 financial results for the period ended October 31, 2014.

First Quarter financial & business highlights

• Revenue increased 138% YoY (year over year) to $19,684,213
• Gross profit increased 194% YoY to $5,741,102
• Gross margin increased YoY to 29.2% from 23.6%
• Cash Flow from Operating activities increased YoY by $3,166,564 to $1,067,202
• Processed approx 13M transactions worth about $1.3B representing 375% YoY transaction growth and 10% growth sequentially
• Finished the period with $29,728,405 in cash and cash equivalents (including restricted cash and cash held to fulfill bill payment obligations) and no long-term debt
• Acquired the assets of San Francisco, CA based VeriFone Commerce Solutions (chargesmart.com), a leading provider of online bill payment services for US consumers
• TIO's direct-to-consumer membership base grew 274% sequentially to over 970,000 members, including the Company's branded "TIO Wallet" and "ChargeSmart" consumer programs.

	Three months ended October 31
	2014	2013
Revenue	$     19,684,213	$    8,261,332
Adjusted EBITDA*	$          876,000	$         52,000
Cash Flow from Operating activities	$       1,067,202	$ (2,099,362)
Net Income (loss)	$          126,637	$    (205,421)

*EBITDA is a non-IFRS measure - earnings before interest, tax, depreciation and amortization. Adjusted EBITDA is EBITDA plus stock-based compensation

"We had another very strong quarter driven by significant organic and inorganic growth," said Hamed Shahbazi, Chairman and CEO of TIO Networks. "In the first quarter, we continued to execute on our growth initiatives as well as the ongoing integration of Global Express and the acquisition of the ChargeSmart.com assets.  Our efforts are continuing to transform TIO into a leading multi-channel bill payment processor well positioned to capture a larger share of a growing, multi-billion dollar industry."

A conference call to discuss the results will be held Wednesday, December 17, 2014 at 1:30 pm EST, 10:30am PST. To participate in the call please dial 416-644-3426 in Toronto or Toll free, 1-800-731-5319 and request the TIO Conference.

TIO NETWORKS CORP.

TIO is a cloud based multi-channel bill payment processor serving the largest telecom, wireless, cable and utility network operators in North America. TIO symbolizes fast, convenient and secure access to high quality bill payment services.  Please visit www.TIOnetworks.com.

The TSX Venture Exchange has not reviewed this news release and does not accept responsibility for its adequacy and accuracy.

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made.  Potentially, many factors could cause our actual results to vary materially from those described herein as intended, planned, anticipated or expected.  TIO Networks Corp. does not intend and does not assume any obligation to update these forward-looking statements.

* EBITDA is a non-IFRS measure - earnings before interest, tax, depreciation and amortization, and stock-based compensation.  Adjusted EBITDA is EBITDA excluding non-recurring transaction and restructuring expenses.  EBITDA is not a defined term under IFRS nor does it have a standard, agreed upon meaning.  Accordingly, the Company's EBITDA may not be directly comparable to EBITDA reported by other issuers.  Management had determined EBITDA is a useful supplemental measure in evaluating the Company's performance as it provides investors with an indication of cash available for debt service, working capital needs and capital expenditures.  This non-IFRS measure is intended to provide additional information on the Company's performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

SOURCE: TIO Networks Corp.

Richard Cheung, CFO - TIO Networks, Tel: [phone], Ext. 265, Email: [email protected]; David Fore, Hayden - Investor Relations, Tel: [phone], Email: [email protected]; Ryan Tessier, Yulu - Media Relations, Tel: [phone], Email: [email protected]