MediaNet Group, operator of the largest online mall and affinity program platform through its BSP Rewards subsidiary, has released its financial results for the first quarter ending March 31, 2008. The company’s revenue increased significantly with revenues for the first quarter of 2008 increasing by 186% to $493,963 as compared to $172,530 for the first quarter ending March 31, 2007.
Other financial highlights for the company include an increase in the number of shares outstanding from 11,836,363 in the prior year period to 19,436,736 at March 31, 2008 due to a private placement of six million shares completed during the fourth quarter of 2007 and for other issuances of common shares related to stock-based compensation. The company also increased the number of merchants in the mall since the end of the fourth quarter by adding 64 new well known merchants, bringing the total to 750.
Commenting on the first quarter results, Martin Berns, Chief Executive Officer, stated, “At the end of 2007 we had the opportunity to analyze and realign merchant partners, our branded mall clients and their respective member databases. Accordingly, we added and deleted merchants that did not offer sufficient rebates and clients that did not produce revenue in proportion to the cost involved in servicing them. These measures are aimed at producing more revenue and higher margins in 2008, and are already proving successful.”
Mr. Berns further commented, “The first quarter showed an increase of 13% over the holiday volume of the fourth quarter. The increase in revenue both year over year and quarter over quarter is reflected in our efforts towards shifting to a more profitable, higher quality base of merchants. In addition, our ability to manage our cost structure and the continued addition of both depth and breadth of new private branded mall clients is directly responsible for our improved financial performance and efforts to bring us closer to profitability.”
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