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NTN Buzztime Posts Q2 Revenue Loss, Readies On-Demand Trivia Platform

Posted On: 8/26/2013

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TAGS: NTN Buzztime Inc., NTN second quarter report, interactive content for bars, trivia games, pub quiz, BEOND, Buzztime Entertainment On Demand, Jeff Berg, NTN location base

CARLSBAD, CA -- NTN Buzztime Inc. reported $5.5 million in revenue for the second quarter of 2013, ended June 30, compared with $6 million for the same period in 2012. Gross margin as a percentage of revenue decreased to 73% for the second quarter, from 74% for the same period a year earlier. Direct costs decreased $100,000, or 4%, to $1.5 million for the second quarter from $1.6 million in 2012's second quarter. NTN had a net loss of $100,000, which had no effect on its share value.

NTN Buzztime produces interactive content for bars and restaurants. Its main product Buzztime (formerly known as the NTN Network) broadcasts trivia and other games through broadband to locations in the U.S., Canada and the Caribbean. Based in Carlsbad, CA, the company was founded as Alroy Industries and went by the name NTN Communications Inc. between 1985 and 2005. The company is planning to introduce a new platform, BEOND, which stands for Buzztime Entertainment On Demand.

"In the second quarter, we focused on translating our pilot program and product development advancements into preparation for commercial launch of our new platform," said NTN chief executive Jeff Berg. "We believe Buzztime BEOND is a best-of-breed platform which should attract bars and restaurants looking for technology-driven solutions to their entertainment and marketing needs."

During this year's second quarter, NTN's general expenses, including those related to selling and administration were $4 million compared with $4.9 million for the same period in 2012. The 19% drop was chiefly related to reductions in payroll expenses.

"Our year-over-year EBITDA swing was a positive $500,000 and $1.2 million for the quarter and first half, respectively," Berg reported.

As of June 30, there were 3,352 venues that subscribed to NTN Buzztime, compared to 3,775 at the end of June 30, 2012, an 11% decrease.