Total Revenue Increased 15% and Monthly Hospitality Recurring Revenue Increased 79% Year over Year
Denver, CO, August 14, 2013– Roomlinx, Inc. (OTCBB: RMLX), the innovative developer of media networks and interactive TV (iTV) applications for the hospitality industry, today announced financial results for the three months ended June 30, 2013.
In the second quarter of 2013, total revenue increased 15% to $2.4 million compared to second quarter of 2012. Hospitality revenue in the second quarter of 2013 increased 16% to $2.2 million, compared to $1.9 million in same period in 2012. This increase is primarily related to the increase in the Company’s monthly recurring revenue associated with its revenue generating units (“RGUs”).
An RGU is defined as a product or service for which the Company invoices the hotel monthly, including interactive television, video on demand, free to guest programming, and high speed internet access. As of June 30, 2013, the Company was servicing approximately 82,000 RGUs within the hospitality sector, a 71% increase over the number of RGUs being serviced as of June 30, 2012.
Hospitality Revenue Generating Units (RGU) as of June 30, 2013:
The company also realizes approximately $70,000 in monthly recurring revenue within its residential segment.
The hospitality segment consists of service revenue which is monthly recurring revenue attributable to RGUs and product, plus installation revenue which is one-time revenue. Hospitality service revenue increased to $1.3 million in the second quarter of 2013 compared to $0.7 million in the same period in 2012, a 79% increase, while hospitality product and installation revenue decreased $0.3 million to $0.9 million. Residential revenue was down to $218,000 in the second quarter of 2013 compared to $231,000 in the same period in 2012, a 6% decrease.
Basic and diluted weighted average shares outstanding for the three months ended June 30, 2013 were 6,405,413 compared to 5,893,814 in the year-earlier period.
For the three months ended June 30, 2013, Roomlinx reported a net loss of $719,090, compared to a net loss of $1,811,630 for the three months ended June 30, 2012, a reduction of net loss of $1,092,540. Net loss not inclusive of non-cash items was $411,090. The decrease in net loss is primarily attributable to the 79% increase in hospitality recurring revenues and the $557,152 reduction in operating expenses.
Recent key accomplishments at Roomlinx include:
- Reduced net loss by over $1.0 million year over year and $0.7 million quarter over quarter.
- Increased hospitality recurring revenue by 79%.
- Second quarter 2013 RGUs in service increased 71% compared to the second quarter of 2012.
Roomlinx CEO, Michael Wasik, summed up the second quarter results by stating, “Focusing our efforts on increasing our recurring revenues and decreasing our operating costs has delivered positive results. Roomlinx remains focused on these initiatives in order to attain positive cash flow and position our company for long term success. We expect this favorable trend to continue.”