Global Traffic Network Q1 Revenue Up
November 12, 2008 at 5:25 AM (PT)
International traffic service provider GLOBAL TRAFFIC NETWORK fiscal first quarter revenue rose 45% to $16 million, driven primarily by a 31% increase from the Company’s Australian operations and a 72% increase at its Canadian operations. U.K. revenues rose from zero to $1.2 million. Net income rose form a loss of $100,000 to a gain of $900,000.
Chairman/CEO/President WILLIAM L. YDE III said, "We are pleased to report another excellent quarter even though there is a great deal of uncertainty and turmoil in the global economy. Despite broader market issues, our business remains solid and we continue to see strong demand for our advertising spots. We believe that our advertising products are particularly attractive in difficult economic times due to their cost efficiency and effectiveness in reaching mass audience. We continue to increase revenue in both AUSTRALIA and CANADA and now have a steady revenue stream from the HIGHWAYS AGENCY contract in the UNITED KINGDOM. Even though revenues continue to grow in our local markets, the strengthening of the U.S. dollar will have a negative impact on our revenues when reported in U.S. dollars. However, we believe continuing to develop new advertising clients and drive demand for our products and services in the local markets is the key to our long term financial performance."
YDE also said, "Overall, the revenue trends we have recently seen in our Australian and Canadian business bode well for the company, and the long-term outlook for the United Kingdom is very positive. While we don’t feel that any business is immune to the current economic conditions, we do believe that we are well positioned to weather the storm and continue to grow our business, as we have a healthy amount of cash on our balance sheet, little debt and a steady cash stream from our established businesses."