May 23, 2016

Ominto, Inc. Reports Fiscal Second Quarter 2016 Financial Results

BOCA RATON, Fla.--(BUSINESS WIRE)-- Ominto, Inc. (OTC PK: OMNT), a global leader in online Cash Back shopping, today reported financial results for the fiscal second quarter and six months ended March 31, 2016.

For the quarter ended March 31, 2016, revenue increased 4% to $4.0 million, compared to $3.8 million for the same quarter of the previous fiscal year. The increase was due primarily to increased membership subscription fees and increased commission income generated from purchases at our partner merchants on the Company's Cash Back shopping platform, DubLi.com.

Loss from continuing operations for the fiscal quarter ended March 31, 2016 was $3.0 million compared to a loss of $2.0 million in the fiscal second quarter of 2015. The higher loss is primarily due to an increase in selling, general, and administrative costs compared to the prior period. Specifically, the Company had higher costs associated with maintaining a greater number of office locations in the US and the corresponding additional salaries of maintaining these offices. The Company has since consolidated the number of offices in the US to focus on streamlining its operations and reduced its overhead related to salaries which should reduce SG&A in the third and fourth quarters of fiscal 2016. To a lesser extent, with the launch of the Company's new Cash Back shopping platform earlier in May 2016, the Company will no longer need to carry the costs associated with supporting two concurrent systems.

Income from discontinued operations was $28,060 compared to nil for the first quarter ended March 31, 2016 and 2015, respectively. Net loss for the fiscal second quarter of 2016 was $3.0 million resulting in loss per share of $0.25 compared to a net loss of $2.0 million, or a loss per share of $0.23 for the fiscal second quarter of 2015.

For the six months ended March 31, 2016, revenue increased 10% to $9.4 million, compared to $8.6 million for the same period of the previous fiscal year. The increase was due primarily to increased membership subscription fees and increased commission income generated from purchases at our partner merchants on the company's DubLi.com Cash Back shopping platform.

Loss from continuing operations for the fiscal six months ended March 31, 2016 was $5.3 million compared to a loss of $3.4 million in the same period of 2015. The higher loss resulted primarily from an increase in selling, general, and administrative cost compared to the prior year period. Specifically, the Company had higher costs associated with maintaining a greater number of office locations in the US and the corresponding additional salaries of maintaining these offices. The Company has since consolidated the number of offices in the US to focus on streamlining its operations and reduced its overhead related to salaries which should reduce SG&A in the third and fourth quarters of fiscal 2016. Furthermore, the Company launched a new Cash Back shopping platform earlier in May 2016. With the launch of the new platform, the company will no longer need to carry the costs associated with supporting two concurrent systems.

Income from discontinued operations was $31,908 compared to $248,891 for the fiscal six month periods ended March 31, 2016 and 2015, respectively. Net loss for the fiscal six month period of 2016 was $5.0 million resulting in loss per share of $0.43 compared to a net loss of $3.1 million, or a loss per share of $0.36 during the same period of 2015.

"Many of our company-wide efforts of the past year came to fruition early in May with the launch of our new world-class Cash Back shopping platform," stated Mitch Hill, Interim Chief Executive Officer. "We expect to begin realizing the benefits of the new platform and our earlier cost optimization efforts during the third fiscal quarter. During the first quarter of 2016 we began implementing a series of measures to improve our cost structure and enhance our profitability potential that continued during the second quarter. Furthermore, with the launch of the new platform, no longer will we need to carry the costs associated with supporting two concurrent systems but rather can now place our entire effort on maximizing the revenue potential of our new platform. We are advancing the sophistication of our new platform and enhancing the customer experience with a number of new features and functionality that we expect to increase customer engagement."

For more information, please visit Ominto's corporate website http://inc.ominto.com.

About Ominto, Inc.

Ominto, Inc. is a global e-commerce leader and pioneer of online Cash Back shopping delivering value-based shopping and travel deals through its primary shopping platform and affiliated Partner Program websites. At DubLi.com or at Partner sites powered by Ominto.com, consumers shop at their favorite stores, save with the best coupons and deals, and earn Cash Back with each purchase. The Ominto.com platform features thousands of brand name stores and industry-leading travel companies from around the world, providing Cash Back savings to consumers in more than 120 countries. Ominto Enterprise Partner Programs offer a white label version of the Ominto.com shopping and travel platform to businesses and non-profits, providing them with a professional, reliable web presence that builds brand loyalty with their members, customers or constituents while earning commission for the organization and Cash Back for shoppers on each transaction.

Forward-looking Statements

This document contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding Ominto's strategy, future operations, future financial positions, prospects, plans and objectives of management are forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "to," "plan," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "target" or "continue" and similar expressions (or the negative of these terms) are intended to identify forward-looking statements. These forward statements include, among other things, statements about management's estimates regarding future revenues and financial performance and other statements about management's beliefs, intentions or goals. Ominto may not actually achieve the expectations disclosed in the forward-looking statements and you should not place undue reliance on Ominto's forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to: our ability to successfully obtain consumer and/or market acceptance of our membership Cash Back program; the ability to attract customers who purchase through our website; our ability to obtain additional funding and/or generate sufficient working capital to fund our operations; the ability to establish and/or maintain a large growing base of productive business associates; the ability to develop and/or maintain our growing Partner programs; the ability to obtain and maintain digital coupon content on our website; the risks related to Ominto's ability to manage its growth, including accurately planning and forecasting its financial results; the competitive environment for Ominto's business; Ominto's ability to protect consumer data and our intellectual property; the ability to adapt to mobile and technological change; the need to manage regulatory, tax and litigations risk; Ominto's ability to manage international business uncertainties; along with other risks and potential factors that could affect Ominto's business and financial results identified in Ominto's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended September 30, 2015.

Ominto, Inc.
Mitch Hill, 561-362-2399
investors@ominto.com

Source: Ominto, Inc.

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