ROK Entertainment Group Inc., the global mobile entertainment group and owner of ROK Comics, has announced its financial results for the first fiscal quarter ended June 30, 2008.
ROK has continued to develop its revenue-generating mobile product portfolio, comprising over 40 applications, from high-quality mobile TV streamed live and on-demand over mass-market mobile networks and the internet, to the storage of copy-protected video content for play on mobile devices, through mobile Voice over Internet Protocol (mVoIP) technologies, mobile social networks, data compression services, mobile conference-calling services and an advertising funded e-mail service for mobile users. It currently has corporate operations in the United Kingdom, the Peoples Republic of China, the United States and South Africa which are all active, as well as joint ventures in Russia, Brazil and Pakistan.
Since inception, ROK has concentrated on developing a broad portfolio of mobile technologies, services and applications and, as an expected result, has had limited revenue from the sale of products and services. Revenues for Q1 2009 are $1.0m (2007: $0.6m), representing an increase of 73%. Its net losses for the quarters ended June 30, 2008 and 2007 are $20.9m, of which $14.6m was a charge made during the quarter for stock-based compensation in accordance with US GAAP, and $4.5m, respectively, and its accumulated deficits as of June 30, 2008 and 2007 are $98.9m and $78.0m, respectively. ROK expects to increase its spending significantly as it continues to expand its infrastructure and its sales and marketing efforts, and continue research and development. As a consequence of this, ROK expects to raise additional financing to achieve its operating goals.
The Group experienced strong operational performance this quarter, alongside the focus on the current funding round. Notable developments include the acquisition of IPTV company Jalipo, which offers live streaming of TV content over the internet; the addition of its mobile TV service, ROK TV, and its mobile conference-calling service, ROK Talk, to Telenor’s ‘Playground’; offering the works of Spike Milligan to mobile users via www.spike-milligan.com and the Group’s subsidiary, ROK Comics, adding Roy of the Rovers to its comics for mobile download; and partnering with South African Airways, Tanzania Broadcasting Corporation, Vodacom and Motorola in the search for a Global Soccer Star in Tanzania, which by July 29 had conducted trials with 10,000 aspiring football players in Tanzania with thousands more lined up.
During the quarter, the Group’s subsidiary, ROK Diamonds Limited, entered into a letter of agreement with Australian-listed Mineral Commodities Ltd for the purchase of Kariba Kono diamondiferous gravel dump in Sierra Leone, which would represent the first stage in the divestment of ROK Diamonds from ROK. The Group also disposed of its interest in Rock Group plc, a manufacturer of laptop PCs and TV/PC screens.
A key agreement entered into this year and implemented this quarter is for the provision of white-label mobile TV services, including content, for America Movil, which has mobile carrier operations in 16 territories across the Americas including Mexico. This should start commercial operations in Q4.
There have been several significant developments post period-end, including the deployment of ROK’s News-on-Demand mobile video service through Ufone in Pakistan, and the launch of ROK’s Push-In-Box mobile email service via its distribution partner YuuZoo, with the service being co-branded YuuROK. Delivering regular news updates via MMS, Ufone’s Video News Service is already seeing substantial subscriber uptake whilst in just six weeks to the end of July, YuuROK had achieved almost 100,000 sign-ups. Advertising revenues are expected to grow considerably in Q3.
As a result of these acquisitions, agreements and extensions to its product and intellectual property portfolio, management believes that ROK is well-positioned for expansion over the rest of this year and beyond. The Group’s achievements were recognized when its California-based subsidiary, Fun Little Movies, won the Content Award at the prestigious Mobile Entertainment Forum in Cannes, against competition including BBH, MTV Networks International, Orange Israel and Donna Productions.
Laurence Alexander, Group CEO, commented: “This quarter has witnessed continued momentum in operational performance and we have built upon the foundations laid last year. We have again increased our revenues like-for-like, established and furthered relationships with key global players in the telecommunications sector, enhanced our product and service offerings, which was helped by our strategic acquisitions, and strengthened our intellectual property portfolio. Our achievement is reflected in the Group receiving industry recognition in winning prestigious awards, launching new services and substantially growing our subscriber base organically. As a result, ROK is well-positioned for long-term growth with strengthened foundations from which we expect to continue to rapidly expand our user base worldwide. We look forward to the future with confidence.”
• Read the full press release on the ROKCorp web site
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