NTN Reports Third Quarter Financial Results

Business Wire, Nov 2, 1999

CARLSBAD, Calif.--(BUSINESS WIRE)--Nov. 2, 1999--

NTN Communications Inc. (AMEX:NTN), an Internet games provider and interactive television network operator, today reported total revenue for the three months ended Sept. 30, 1999 of $5.9 million, compared to revenue of $5.8 million during the same period of 1998.

The company's net income for the quarter was $507,000 or $0.02 per common share, compared to a net loss of $322,000 or $0.01 per common share for the same quarter last year. Net income for the third quarter of this year included a one-time gain of $2.3 million from the sale of the assets of a subsidiary. Without this one-time gain, net loss for the quarter would have been $1.7 million or $0.06 per common share.

NTN's third quarter 1999 earnings before interest, taxes, depreciation and amortization ("EBITDA") were $124,000 (excluding the gain on the sale of the subsidiary assets), versus $1.0 million for the third quarter of 1998.

During the quarter, the ongoing conversion of the Hospitality Network to Digital Interactive TV (DITV) brought about additional revenues, but also higher direct operating costs. The company installed 596 Hospitality sites (196 new sales and 400 conversions) versus 221 sites during the same quarter last year. The Online business reflected the phase-out of online agreements that reduced revenues, combined with additional staffing expenses incurred to prepare for the Internet launch of the company's products. Year 2000 consultants, increased depreciation and increased interest costs also contributed to quarterly expenses.

"Operating results were in line with our expectations," said Stanley B. Kinsey, chief executive officer and chairman of NTN Communications Inc. "At this date, we have converted 43% of our Hospitality Network to DITV, have been successfully staffing for our Internet launch and have spent far less on Y2K readiness than anticipated. I remain pleased with the company's position as it ventures into the Internet and Interactive TV delivery platforms for its unique and proven content."

NTN Communications has scheduled a telephone conference call to discuss the third quarter 1999 results on Tuesday, November 2, at 1:15 p.m. Pacific/4:15 p.m. Eastern. Interested individuals may participate in the question and answer period following the discussion by calling 800/281-0845 up to 15 minutes prior to the scheduled time the day of the conference, and mention the NTN conference call led by NTN Communications Chairman and CEO Kinsey.

Third quarter 1999 news from NTN includes:

Arlen and Carrino Appointed to NTN Board

During the third quarter of 1999, Gary Arlen, a leading interactive media analyst and founder of the industry group now known as The Internet Alliance, and Vince Carrino, founder and president of Brookhaven Capital Management, were appointed to the NTN Board of Directors.

The NTN board also includes Bob Bennett, chairman of a broadcast television firm involved with syndicated sports and specialty programming; Barry Bergsman, a pioneer in the use of the telephone with interactive technology; Donald C. Klosterman, who brings to NTN a background that includes NFL football general manager and coach; Esther Rodriguez, former vice president of worldwide sales for telecommunications giant General Instrument; and Chairman Kinsey, CEO of NTN Communications Inc.

NTN Appoints R.L. Anderson As New President Of NTN Networks

NTN Communications, operator of the nation's largest interactive television network for hospitality venues, announced that Robert L. Anderson had been appointed to the newly created post of president/NTN Networks, the firm's hospitality division. The NTN Networks division encompasses two interactive television networks broadcasting sports games and trivia competitions to hospitality venues including restaurants, sports bars and taverns. NTN Communications also operates NTN Studios, the creator of original multi-player games that are distributed to the NTN Networks, NTN Internet areas and strategic partners.

NTN Secures $4 Million Line Of Credit

NTN reported in September that it had secured a $4 million revolving line of credit from Coast Business Credit, a wholly owned subsidiary of Southern Pacific Bank. The line of credit will be used primarily for capital expenses related to the launch of NTN's new Digital Interactive TV network.

Bennigan's and BW-3 Endorse NTN Digital Interactive TV

During the third quarter of 1999, NTN announced that Bennigan's(R) Irish American Grill & Tavern agreed to feature NTN's new Digital Interactive TV network in a minimum of 100 of the chain's 248 restaurants within 12 months. This rollout includes both corporate and franchise Bennigan's locations that stretch across 30 states. In addition, NTN's Digital Interactive TV network will be installed in all 21 of the bw-3/Buffalo Wild Wings corporate locations. NTN has received contracts to install Digital Interactive TV in 63 of the total 95 bw-3/Buffalo Wild Wings locations nationwide.

NTN Sells Assets Of Wholly-Owned Subsidiary IWN Inc.