JumpTV Reports Q2 2008 Results

JumpTV TSX: JTV AIM: JTV, a leading broadcaster of live and on-demand sports and international television over the Internet, today announced results for the second quarter ended June 30, 2008.

Revenue was $3.6 million all amounts in U.S. dollars for the second quarter of 2008 compared to $3.6 million for the first quarter of 2008 and $1.2 million in the same period in 2007 — marking a year-over-year increase of 206%. This increase can be attributed to the acquisition of CyclingTV and XOS Broadband Networks now JumpTV Sports and the revenue generated by the South American World Cup Qualifiers in the second quarter of 2008.

The net loss for the three months ended June 30, 2008 was $11.5 million or $0.23 per share, basic and diluted as compared to $58.7 million or $1.19 per share, basic and diluted for the three months ended March 31, 2008 and $6.5 million or $0.13 per share, basic and diluted in the same period a year ago. The decrease in net loss from the first quarter 2008 was primarily due to the impairment of goodwill and intangibles recorded in the first quarter. Non-cash expenses were $2.0 million in the second quarter, consisting of amortization and stock-based compensation, compared to $50.2 million in the first quarter of 2008, consisting of impairment of goodwill and intangibles as well as amortization and stock-based compensation. As of June 30, 2008 the Company had $29.8 million in cash and cash equivalents.

“In our sports business, we broadened our client base by adding new teams and leagues as partners and, at the same time, we increased the depth of many of our existing relationships by adding incremental functionality and other technology solutions to their online offerings,” commented G. Scott Paterson, Executive Chairman of JumpTV.

“In our international business, we took steps with respect to people and other resources to position our strongest areas of content aggregation — Arabic, South Asian, Hispanic and Caribbean — to be re-energized in the context of our new business plan which will unfold as a result of our planned merger with NeuLion. In particular, at this time, we have focused on our Arabic content which will soon be launched and available under its own newly designed and built proprietary portal which will compliment this content’s availability on JumpTV.com,” added Paterson.

The Company reports that its previously announced planned merger with NeuLion Inc., a Plainview, New York-based end-to-end IPTV service provider of live and on-demand sports, international and religious programming over the Internet and through set top boxes to the television, is on track to close on October 1st subject to shareholder and regulatory approvals.

“We are very excited about our pending merger and believe that the JumpTV/NeuLion combination will be able to offer our sports and international content partners best-in-class technology and services,” Paterson commented.

The Company reported the following traffic related average monthly metrics in connection with overall user activity on JumpTV.com, our affiliate web sites and on JumpTV Sports-managed sites but not including third-party distributors of JumpTV content such as AOL.com and Terra.com:

    KPI (monthly averages in millions)       Q2 2008     Q2 2007
Stream Viewed                                    4.1         2.6
Minutes Viewed                                  95.9        63.0
Monthly Unique Visitors                          7.2         4.6
Monthly Pages Viewed                            62.6        46.2
Ad Impressions                                 178.3        22.2

The approximate number of subscribers as of June 30, 2008 was 68,500. Year-over-year subscribers increased 128% from 30,000 in Q2 2007, primarily as a result of the acquisitions of XOS Broadband Networks (now JumpTV Sports) and Cycling TV. The Company reports that it is typical for its subscriber trends to experience significant seasonality with Q2 being the weakest and Q4 being the strongest quarters as a result of the college/university school years and, correspondingly, football and basketball seasons.

About JumpTV

JumpTV Inc. (www.jumptv.com), (TSX: JTV) (AIM: JTV), is a world leading broadcaster of live and on-demand sports and international television over the Internet. In the last twelve months, JumpTV streamed more than 15,000 live and exclusive sporting events — comprised of top college (NCAA), professional and Hispanic sports coverage — to millions of fans globally. JumpTV also delivers a broad offering of internet services to its partners including web hosting, live event video streaming, ticket management and e-commerce.

Through JumpTV’s consumer websites: JumpTV.com, Cycling.TV and SportsYa.com, as well as its collegiate and international sports partner websites, JumpTV streams tens of thousands of hours of live and on-demand events and international programming over the Internet each year, providing content from over 160 international channels from 40 countries to subscribers in over 90 countries.

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