FOR IMMEDIATE RELEASE Contact: Kenneth Sanders,CFO (954) 351-2120 ext. 829
Traffic to the Company's Web sites grew 251% over the same quarter last year, averaging 2.83 million page views per day during the fourth quarter of 1997, compared to 0.81 million page views per day in the same quarter last year. This represented a 72% increase over page views experienced during the third quarter of 1997. Average daily visits to the Company's Web sites increased to approximately 457,000 in the fourth quarter, compared to approximately 100,000 in the same quarter the previous year, an increase of 357%. During the month of December, traffic to the Company's Web sites increased 292% over the previous year to 89.07 million page views or 2.87 million per day.
"During the fourth quarter, our strategic relationships with partners like CBS, AOL, Microsoft and Netscape, combined with the World Series and football season, significantly strengthened our brand awareness, increased our base of users, and led to strong growth in revenue," said Michael Levy, president and CEO of SportsLine USA, Inc. "Our initial public offering was a milestone in the Company's history and has provided additional capital to continue building our global sports brand."
Financial Highlights
(in thousands except per share and member data)
Quarter Ended Year Ended December 31, December 31, 1997 1996 1997 1996 Revenue $4,460 $1,264 $ 10,327 $2,437 EBITDA (4,960) (4,050) (17,012)(12,260) Net loss (7,545) (4,201) (26,535)(12,855) Net loss per share $(.62) $(.49) $ (2.54) $(1.92) Page views 260,579 74,324 608,991 164,515 Average page views per day 2,832 808 1,668 451 Members at end of period 49,462 29,478 49,462 29,478SportsLine USA Raises Capital For Future Growth
Advertising
SportsLine USA experienced growth in all revenue streams over the same quarter in the previous year, most substantially in the area of advertising revenue. Advertising revenue during the fourth quarter grew to approximately $2.35 million, an increase of 200% over the same quarter the previous year. SportsLine USA has recently added several new brand-name advertisers to its roster including Anheuser-Busch, Shell Oil, Sony and Xerox.
Superstar Web Sites
In November 1997, SportsLine USA launched the official Web sites for Michael Jordan and Tiger Woods. These sites allow fans to interact with Michael and Tiger through chat, audio archives, proprietary stories and interviews, photos, and video clips. Club Tiger, the official on- and off-line Tiger Woods fan club, was also launched this quarter by SportsLine USA.
"Through our relationships with sports superstars such as Michael Jordan and Tiger Woods, we have increased traffic to our site, created unique content that cannot be found anywhere else on the Internet, and gained valuable introductions to the athletes' sponsors, many of whom are now advertisers on our site," said Levy.
Content Distribution
During the fourth quarter, the Company entered into two major strategic content distribution agreements. SportsLine USA joined Microsoft as a Platinum Channel partner on Internet Explorer 4.0, Microsoft's newest Web browser. CBS SportsLine's content is featured as a pre-configured button on the Channel Bar in Internet Explorer 4.0. Taking advantage of the latest "push" technology that "webcasts" information on requested topics directly to the user, the CBS SportsLine Channel features 11 information areas, covering each major professional and collegiate sport. As a Platinum Channel Partner, CBS SportsLine gains access to all buyers of new computers that come with Microsoft's Web-browser installed.
SportsLine USA also entered into a syndication agreement with Sports Fan Radio Network that provides for eight-hour blocks of SportsLine USA's Internet sports radio programming to be broadcast every day in 40 markets nationwide.
Special Event Sites Already in 1998, SportsLine USA has produced several comprehensive sites devoted to coverage of special events such as the Orange Bowl and the Super Bowl. This month, CBS SportsLine's comprehensive, multimedia Winter Olympics Web site will complement CBS Sports' coverage of the XVIII Olympic Winter Games in Nagano, Japan with thousands of pages of in-depth information on the athletes, events and competitions. The CBS SportsLine site will bring fans the latest news from Nagano and will serve as a valuable resource for Olympic Winter Games history dating back to 1924. Once the Games begin, upcoming event schedules, results and medal counts will be constantly updated. Home pages for each Olympic sport have been created with links to specific competition news, results, schedules, polls, CBS analyst predictions and chat. Player/team profiles that include past performance records, hometown, height, weight, age, photographs and even phonetic name pronunciations are also available. Fans unfamiliar with a particular sport can find detailed information on its rules and scoring along with a helpful glossary of terms.
In March, SportsLine USA will combine its strengths with CBS Sports to offer college basketball fans detailed coverage of the entire NCAA Men's Basketball Tournament.
Expanded Sports Coverage
During the 1998 professional golf season, SportsLine USA will benefit from its alliance with CBS Sports and its recently announced acquisition of GolfWeb (www.golfweb.com), the world's premier Internet golf site to expand its comprehensive golf tournament coverage.
CBS Sports will broadcast more than 24 golf tournaments during 1998, including The Masters, The PGA Championship and AT&T Pebble Beach National Pro-Am. SportsLine USA's partnership with CBS Sports provides frequent, on-air promotion of the CBS SportsLine Web site as well as original content, research, video and talent.
In January, CBS Sports announced that it has acquired the rights from the NFL to broadcast AFC games for the next eight years beginning with the 1998 season. This broadcast deal is expected to provide significant exposure for the CBS SportsLine Web site during NFL games and will allow CBS SportsLine to offer expanded pro football coverage to its viewers.
About SportsLine USA
SportsLine USA, Inc. (NASDAQ: SPLN) is a leading Internet-based sports media company that provides branded, interactive information and programming as well as merchandise to sports enthusiasts worldwide. SportsLine USA publishes several sports
Web sites including CBS SportsLine (cbs.sportsline.com) and Soccernet (www.soccernet.com) and exclusive Web sites for sports teams, organizations and superstars such as Michael Jordan, Tiger Woods and Shaquille O'Neal. SportsLine USA's flagship Web site, CBS SportsLine, features more than 200,000 pages of multimedia sports information, entertainment and merchandise covering all major collegiate and professional sports. SportsLine USA was founded in 1994, and its primary Web site was renamed CBS SportsLine in March of 1997 as part of an exclusive five-year promotional and content agreement with CBS Sports.
This press release contains forward-looking statements. SportsLine USA's actual results could differ materially from those set forth in the forward-looking statements. Factors that might cause such a difference include, among other, competitive pressures, the growth rate of the Internet, constantly changing technology, acceptance of SportsLine USA's services in the market place and the other risks detailed in SportsLine USA's Securities and Exchange Commission (the "SEC") filings, including the Prospectus dated November 13, 1997 as filed with the SEC.
SportsLine USA, Inc.
Condensed Statements of Operations
(in thousands except per share data)
Quarter Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
Revenue:
Advertising $2,349 $783 $5,414 $1,551
Membership 464 233 1,553 526
Vegas Insider &
premium products 499 246 1,139 357
Merchandise 216 2 286 3
Licensing & other revenue 932 - 1,935 -
Total revenue 4,460 1,264 10,327 2,437
Cost of revenue 2,792 1,230 7,650 3,395
Gross margin (deficit) 1,668 34 2,677 (958)
Operating expenses:
Product development 360 211 1,300 939
Sales and marketing 3,917 2,138 10,874 5,569
General and administrative 2,351 1,735 7,515 4,794
Depreciation &
amortization 2,849 322 10,284 824
Total operating expenses 9,477 4,406 29,973 12,126
Loss from operations (7,809) (4,372) (27,296)(13,084)
Net interest income 264 171 761 229
Net loss $(7,545) $(4,201) $(26,535) $(12,855)
Average shares outstanding 12,213 8,621 10,459 6,681
Net loss per share $(.62) $(0.49) $(2.54) $(1.92)
EBITDA $ (4,960) $(4,050) $(17,012) $(12,260)
SportsLine USA, Inc.
December 31,
Assets: 1997 1996
Cash and investments $ 32,158 $ 13,994
Other current assets 5,402 953
Property and equipment, net 3,433 2,242
Other assets 1,952 661
$42,945 $17,850
Liabilities and Shareholders' Equity:
Current liabilities $6,937 $3,168
Long-term obligations 445 409
Shareholders' equity 35,563 14,273
$42,945 $17,850