Playdium Financial Results Released.
Playdium Entertainment Corporation opened Canada's first interactive entertainment centre, "Playdium" in September 1996. With expected attendance figures at the site surpassed, revenues for Playdium Entertainment Corporation were $2,757,000 for the six months ended June 30, 1997.
These revenues primarily represent half of the actual revenues generated from the Playdium site, which is jointly owned by Playdium Entertainment Corporation and Sega GameWorks L.L.C. Revenues, net of operating site costs, have yielded a contribution margin of 37 percent.
Operating results indicated a net loss of $3,020,000 for the first six months of 1997 being a loss per share of $0.20, undiluted. The loss before interest, taxes, depreciation and amortization for the first six months in 1997 was $421,000. Contributing to the loss is $1,447,000 in general and administrative expenses.
In total, Playdium Entertainment Corporation has raised approximately $33 million in equity and approximately $5 million in debt during 1996 and the first six months of 1997. Cash and short-term investments totalled $24.8 million at June 30, 1997.
"We are pleased with the operating results from our first Playdium location and the level of consumer interest and satisfaction we have seen to-date", said Mr. Steven Warsh, President and Chief Operating Officer for Playdium Entertainment Corporation. "The head office has been expanding its management breadth and depth to facilitate the development of further Playdium locations, which has contributed to the increased expenses. However, with the financial resources and management talent in the Company, we are well positioned to roll-out the Playdium concept in Canada and in other markets".
The Playdium business is operated through a partnership between Playdium Entertainment Corporation and Sega GameWorks L.L.C. Playdium Entertainment Corporation is the leader in the introduction of large-scale location-based entertainment centres and is dedicated to developing and operating entertainment centres worldwide.
CONTACT: Playdium Entertainment Corporation
Jon Hussman, 416/920-4840
Temple Scott Associates
Jennifer Rideout, 416/360-6183
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|Date:||Aug 29, 1997|
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