3rd Quarter Results

RNS Number:7611L
JumpTV Inc.
08 November 2006

JumpTV Subscriptions Grow 32% in Third Quarter

Internet Broadcaster Announces 3rd Quarter Results and Performance Metrics

TORONTO -- (MARKET WIRE) -- November 08, 2006 -- JumpTV Inc. ("JumpTV" or "the
Company") (TSX: JTV) (AIM: JTV), the world's leading broadcaster of ethnic
television over the Internet, today announced quarterly results and selected
financial metrics for the quarter ended September 30, 2006.

Revenue for the third quarter 2006 increased 58% to US $534,671 from US $337,389
in the same period a year ago. Sequentially, revenue increased 25% from US
$426,998 in the second quarter 2006.

Net loss for the quarter ended September 30, 2006 was US $6,494,411 or US $0.23
per basic and diluted share compared to US $1,086,525 or US $0.08 per basic and
diluted share in the same period a year ago and US $6,449,005 or US $0.31 per
basic and diluted share in the quarter ended June 30, 2006. During the quarter,
the Company invested heavily in the development of its next generation product
offering (JumpTV 3.0), and continued to invest in personnel dedicated to its
global business development efforts in connection with obtaining additional
channel partnerships and marketing partnerships with major ISPs and Internet
portals.

JumpTV had 225 channels signed as of September 30, 2006, as compared to 204
channels as of June 30, 2006 and 59 channels as of September 30, 2005.

Subscriptions increased 32% to 23,885 from 18,119 in the second quarter 2006 and
subscribers increased approximately 35% to 22,019 for the third quarter 2006
from 16,319 in the second quarter 2006. Average Monthly Churn was 22.8% compared
to 15.8% for the quarter ended June 30, 2006. The $0.99 first-month subscriber
promotion resulted in a high churn rate during the quarter as certain
subscribers cycled in and out of the offer.

For the third quarter of 2006, JumpTV's subscriber acquisition cost (SAC) was US
$21.80 compared to US $30.00 in the second quarter of 2006. The Company's
natural search optimization initiatives and the increased number of subscribers
acquired through affiliate marketing partners were the primary drivers of the
26% reduction in subscriber acquisition cost (SAC) during the quarter.

Average monthly Revenue per User (ARPU) was US $9.43 in the quarter ending
September 30, 2006 compared to US $10.31(1) in the second quarter of 2006. The
Company's ARPU declined due to the testing of a $0.99 first-month subscriber
promotion and other test marketing initiatives. The Company expects to continue
to introduce additional channel bundles at higher monthly subscription rates
(e.g. approximately $15/month) which is expected to increase ARPU in future
quarters.

G. Scott Paterson, Chairman & CEO of JumpTV, said:

"We are delighted with the growth in subscriptions in Q3 particularly in light
of the fact that our focus has been and continues to be, in the near term,
securing new channel partnerships, improving our user experience and developing
marketing partnerships around the world (which are soon to be launched).

We have made significant strides in all aspects of our business. We have signed,
on average, two new channel partnerships a week, bringing our total number of
partners to 233 as of today's date. Among our recently announced channel
partnerships are MBC, one of the top pan-Arab general entertainment channels, Al
Arabiya News Channel, one of the leading Arabic language news channels worldwide
and Television Broadcasts Limited (TVB), one of the world's largest producers of
Chinese-language television programming.

Very significantly, we launched JumpTV 3.0, our new online television
experience. JumpTV 3.0 adds video-on-demand, pay-per-view and social networking
functionalities to our platform as well as enhanced digital rights management
and pre-roll advertising capabilities.

We have recently entered into marketing agreements with Comcast, the largest
broadband ISP in the United States, Que Pasa, a leading Hispanic oriented
portal, and Maktoob, one of the world's most visited Arabic online destinations;
each of which we expect to launch commercially prior to year-end.

We have worked diligently to put in place the requisite components of our
business strategy necessary to drive subscriber growth in 2007 and beyond."

(1) The Company reported an ARPU of $9.91 in the prior quarter by dividing total
subscriber-related revenues for the period by the average subscribers for that
period. Average subscribers for the period were calculated by adding the total
subscribers at the end of each month and by dividing by the number of months in
the period. We have adjusted this figure to $10.31 to be consistent with the
definition we disclosed in both our prospectus and prior quarters Management
Discussion and Analysis. This definition states that ARPU is calculated by
dividing total subscriber-related revenues for a period by JumpTV's average
subscribers for that period. Average JumpTV subscribers for a period is
calculated by adding the average JumpTV subscribers for each month and dividing
by the number of months in the period. Average JumpTV subscribers for each month
are calculated by adding the beginning and ending JumpTV subscribers for the
month and dividing by two.

The company will hold a conference call to discuss its third quarter results at
8:00 a.m. PST, 11:00 a.m. EST and 4:00 p.m. GMT on Wednesday, November 8, 2006.
A replay of the call will be available for 7 days using the following dial-in
numbers: US - 1-877-519-4471 or International - 973-341-3080; conference code
8068898. The call will also be available via live audio cast on the JumpTV
website, located at www.jumptv.com. The audio cast will be archived on the
Company's website for a period of 30 days.

About JumpTV

JumpTV is the world's leading subscription based provider of ethnic television
over the Internet. With over 230 channels from 65+ countries, JumpTV delivers to
its subscribers full-screen news, sports and entertainment content on a
real-time basis from all corners of the globe. JumpTV has subscribers from over
80 countries who view channels on the JumpTV online network via ordinary
Internet connections on their home computers, laptops, Internet-enabled
televisions and mobile phones.

Forward Looking Statements

JumpTV is not aware of any uniform standards for calculating subscriptions,
subscribers, ARPU, SAC, Churn and channels signed and it is possible that
JumpTV's presentation of these measures may not be calculated consistently with
other companies in the same or similar business. Moreover, these measures are of
operational performance and not measures of financial performance under
generally accepted accounting principles.

This news release contains forward-looking statements that involve significant
risk, uncertainties and assumptions. Many factors could cause actual results,
performance or achievements to differ materially from the results discussed or
implied in the forward-looking statements. These factors should be considered
carefully and readers should not place undue reliance on the forward looking
statements. These forward looking statements are made as of the date of this
news release, and the Company assumes no obligation to update or revise them to
reflect new events or circumstances. Many factors could cause the actual
results, performance or achievements that may be expressed or implied by such
forward looking statements, including: general economic and market segment
conditions, competitor activity, product capability and acceptance,
international risk and currency exchange rates and technology changes. More
detailed assessment of the risks that could cause actual results to materially
differ from current expectations is contained in the "Risk Assessment" section
included in the Company's final prospectus and MD&A posted on www.sedar.com.

             CONSOLIDATED INTERIM BALANCE SHEETS
      (Expressed in U.S. dollars, unless otherwise noted)


                                        As at         As at
                                    September 30, December 31,
                                         2006         2005
                                           $            $
                                      ----------   ----------
                                     (unaudited)

ASSETS
Current
Cash and cash equivalents             54,020,499    5,475,052
Other receivables                        487,040       78,309
Prepaid expenses and deposits            683,864       14,812
Funds held in trust                      581,861            -
                                      ----------   ----------
Total current assets                  55,773,264    5,568,173
                                      ----------   ----------
Equipment, net                           977,093      379,694
Intangible assets                        464,195            -
Other assets                             227,922      105,216
Deferred direct broadcast
 operating costs, net                    262,094       96,803
                                      ----------   ----------

                                      57,704,568    6,149,886
                                      ==========   ==========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and other
accrued liabilities                    2,230,796    1,008,845
Due to related parties                     6,083      138,323
Current portion of accrued
 license fees                             65,696       79,592
Accrued professional fees                557,834      195,592
Accrued stock
 appreciation rights                     623,859            -
Deferred revenue                         103,106       56,268
Income taxes payable                      52,800       16,800
                                      ----------   ----------
Total current liabilities              3,640,174    1,495,420
                                      ----------   ----------
Accrued license fees                     120,000      120,000
                                      ----------   ----------
Total liabilities                      3,760,174    1,615,420
                                      ----------   ----------

Shareholders' equity
Share capital                         73,556,678    9,744,084
Contributed surplus                    3,127,795      609,908
Accumulated other comprehensive
 loss                                    (40,355)     (40,355)
Accumulated deficit                  (22,699,724)  (5,779,171)
                                      ----------   ----------
Total shareholders' equity            53,944,394    4,534,466
                                      ----------   ----------
                                      57,704,568    6,149,886
                                      ==========   ==========



             CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
         (Expressed in U.S. dollars, unless otherwise noted)
                             (unaudited)

                              Three months               Nine months
                                  ended                     ended
                              September 30              September 30
                            2006         2005         2006         2005
                              $            $            $            $
                       ------------  -----------  -----------  -----------
Revenue, net                534,671      337,389    1,312,167      970,162
Direct broadcast
 operating costs           (706,102)     (97,757)  (1,437,113)  (1,273,636)
                       ------------  -----------  -----------  -----------
                           (171,431)     239,632     (124,946)    (303,474)
                       ------------  -----------  -----------  -----------

Other costs and expenses
Selling, general
 and administrative       5,318,685    1,258,342   14,538,882    1,615,077
Stock-based compensation  1,417,321       74,530    2,744,701      184,833
Amortization                 34,225        6,335       82,076       15,644
                       ------------  -----------  -----------  -----------
                          6,770,231    1,339,207   17,365,659    1,815,554
                       ------------  -----------  -----------  -----------
                         (6,941,662)  (1,099,575) (17,490,605)  (2,119,028)
Gain on foreign
 exchange                  (107,548)     (13,791)     (99,247)      (3,190)
Interest income            (350,703)      (4,859)    (506,805)      (5,759)
                       ------------  -----------  -----------  -----------
Loss before income
 taxes                   (6,483,411)  (1,080,925) (16,884,553)  (2,110,079)
Provision for income
 taxes                       11,000        5,600       36,000       11,200
                       ------------  -----------  -----------  -----------
Net loss for the period  (6,494,411)  (1,086,525) (16,920,553)  (2,121,279)
                       ============  ===========  ===========  ===========

Loss per weighted
 average number of
 shares outstanding -
 basic and diluted            (0.23)       (0.08)       (0.74)       (0.20)
                       ============  ===========  ===========  ===========

Weighted average
 number of shares
 outstanding - basic
 and diluted             28,848,119   13,469,599   22,913,150   10,574,769
                       ============  ===========  ===========  ===========



            CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
        (Expressed in U.S. dollars, unless otherwise noted)
                            (unaudited)

                           Three months                Nine months
                              ended                       ended
                           September 30                September 30
                         2006         2005          2006         2005
                           $            $             $            $
                      -----------  -----------   -----------  -----------

OPERATING ACTIVITIES
Net loss for the
 period                (6,494,411)  (1,086,525)  (16,920,553)  (2,121,279)
Adjustments to
 reconcile net loss
 to net cash provided
 by (used in)
 operating activities
   Amortization            76,069        6,698       174,310       16,007
   Stock based
    compensation,
    excluding change
    in accrued stock
    appreciation
    rights as noted
    below                 793,462       74,530     2,120,842      184,833
Amortization of
 deferred direct
 broadcast operating
 costs                      8,799            -        26,399            -
                      -----------  -----------   -----------  -----------
                       (5,616,081)  (1,005,297)  (14,599,002)  (1,920,439)
Changes in operating
 assets and
 liabilities
   Other receivables     (197,586)     (41,530)     (408,731)     (62,530)
   Prepaid expenses,
    deposits and other
    assets               (312,815)       2,295      (791,758)     (23,693)
   Funds held in trust   (581,861)           -      (581,861)           -
   Deferred direct
    broadcast
    operating costs      (191,690)           -      (191,690)           -
   Accounts payable
    and other accrued
    liabilities        (1,020,553)     723,443     1,221,951      873,127
   Due to related
    parties               (22,342)      (1,590)     (132,240)     (15,848)
   Accrued license fees    23,899       63,680       (13,896)     100,292
   Accrued stock
    appreciation rights   623,859            -       623,859            -
   Accrued professional
    fees               (2,750,880)           -       362,242            -
   Deferred revenue        22,253       (3,564)       46,838       15,167
   Income taxes
    payable                11,000        5,600        36,000       11,200
                      -----------  -----------   -----------  -----------
Cash used in
 operating
 activities           (10,012,797)    (256,963)  (14,428,288)  (1,022,724)
                      -----------  -----------   -----------  -----------

INVESTING ACTIVITIES
   Redemption of
    short-term
    investment                  -            -             -       36,728
   Purchase of
    equipment            (118,835)     (53,600)     (771,709)    (103,829)
   Purchase of HVMedia
    Limited assets,
    including
    transaction costs         333            -      (444,973)           -
                      -----------  -----------   -----------  -----------
Cash used in investing
 activities              (118,502)     (53,600)   (1,216,682)     (67,101)
                      -----------  -----------   -----------  -----------

FINANCING ACTIVITIES
   Proceeds from share
    issuances, net     55,566,287    3,864,036    63,564,934    4,823,036
   Deferred share
    issue costs         3,449,672            -             -            -
   Redemption of
    Class C common
    share                       -            -            (1)           -
   Proceeds from
    exercise of
    stock options          25,438            -       625,484            -
   Proceeds from
    issuance of
    convertible
    promissory note             -            -             -       20,000
   Proceeds from
    issuance of
    special warrants            -            -             -      750,000
                      -----------  -----------   -----------  -----------
Cash provided by
 financing
 activities            59,041,397    3,864,036    64,190,417    5,593,036
                      -----------  -----------   -----------  -----------
Net increase in cash
 and cash equivalents
 during the period     48,910,098    3,553,473    48,545,447    4,503,211
Cash and cash
 equivalents,
 beginning of period    5,110,401    1,186,169     5,475,052      236,431
                      -----------  -----------   -----------  -----------
Cash and cash
 equivalents, end of
 period                54,020,499    4,739,642    54,020,499    4,739,642
                      ===========  ===========   ===========  ===========

CONTACT INFORMATION
Lewis Goldberg / Todd Fromer
KCSA Worldwide
[phone] / [phone]
[e-mail] / [e-mail]

Alex Mackey
Catullus Consulting
+ 44 7773 787 458
[e-mail]



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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