Third Quarter Revenue Up 102% Year-over-Year; Hospitality Revenue Grew 129%
Denver, CO, November 14, 2012– Roomlinx, Inc. (OTCBB: RMLX), the innovative developer of media networks and interactive TV applications for hotels, today announced financial results for the three months and nine months ended September 30, 2012.
Total revenue in the third quarter of 2012 increased 102% to $2.4 million, up from $1.2 million in the third quarter of 2011. Hospitality revenue was the primary driver of this growth and increased 129% in third quarter of 2012 to $2.2 million, up from $950,000 in the prior year’s third quarter. Residential revenue was down slightly to $221,000 in the third quarter of 2012 compared to $238,000 in the same period last year.
For the first nine months of 2012, total revenue increased 153% to $6.1 million from $4.0 million in the first nine months of 2011. Hospitality revenue for the first nine months of 2012 increased 164% to $5.4 million compared to $3.3 million for the first nine months of 2011. Residential revenue was down slightly to $691,000 for the first nine months of 2012 compared to $698,000 in the same period last year.
“Our strong third quarter and nine month revenue growth reflect the continuing progress of our Hyatt Hotel installations,” said Mike Wasik, Roomlinx’s CEO. “At the end of the third quarter, we were providing service in more than 8,300 Hyatt rooms, an increase of approximately 50% since the end of the prior quarter. This on-going increase provides us with an expanding base of monthly recurring hospitality revenue as we build out service in up to 60,000 Hyatt rooms over the next 24 months. We expect to see continued revenue growth as these installations continue”
Net loss in the 2012 third quarter was $2.5 million, up from a net loss of $517,000 in last year’s third quarter. For the first nine months of 2012, net loss was $5.4 million compared to a net loss of $1.8 million in the nine months ended September 30, 2011. Net loss for both the third quarter of 2012 and the first nine months of 2012 includes a non-cash charge of $1.1 million reflecting a loss on asset impairment related to Roomlinx’s wholly owned subsidiary, Cardinal Hospitality, Ltd.
Wasik continued, “Excluding a one-time non-cash charge for impairment of assets, we reduced our net loss for the quarter to approximately $1.4 million, down from approximately $1.8 million in our prior quarter, even as we made significant on-going investments in our support staff and installation teams to deliver increasing installations in the remainder of 2012 and 2013 under our agreement with Hyatt.”
Basic and diluted weighted average shares outstanding for the 2012 third quarter and first nine months were 6,404,631 and 5,805,772, respectively, compared with 5,115,203 and 5,056,412 in the year-earlier periods. The year-over-year increase in shares principally reflects the issuance of shares to certain private investors under a Securities Purchase Agreement in May 2012.