Investor Relations Newsletter July 2002 Welcome to the third AdultShop.com newsletter. 2002 has already proven to be very exciting and successful for AdultShop.com - and there is lots more to come! Read for yourself...
Corporate - Financial Recap
AdultShop.com releases financial projections for the calendar year 2002 On 13 May 2002, AdultShop.com released profit and revenue projections for the remainder of the calendar year 2002.
Key figures included:
Projected revenue of over A$118 million for full financial year 2001/2002, revenue of over $106 million expected for first half of 2002/2003 Net profit after tax of over A$5.5 million expected for full financial year 2001/2002 and expected to reach over A$11.6 million in first half of 2002/2003 alone Cash reserves expected to reach more than A$30 million at the end of the calendar year 2002. Click here for the full press release.
Revenue and positive cash flow grows further in third quarter 2001/2002 Third quarter results for the financial year 2001/2002 were released on April 30, 2002. Receipts from customers for the third quarter rose to A$ 32.5 million, resulting in a positive net operating cash flow of over A$ 5.7 million. Cash reserves rose to more than A$ 11.8 million. This strong performance was the result of an ongoing growth in the online entertainment business and a general improvement of trading conditions across the AdultShop.com group as a whole.
Click here for the full press release.
AdultShop.com reports net profit in the first half-year 2001/2002 AdultShop.com Limited announced its results for the six months ended 31 December 2001 on 15 March 2002. This half year result represents a significant turn-around for the Company and is the first half-year in which a consolidated profit and a positive EBITDA has been reported.
Key Figures:
Revenues from ordinary activities rose to $A 37.879 million, an increase of 238% compared to the half-year to 31 December 2000; Earnings before interest, tax, depreciation and amortisation (EBITDA) for the half-year of A$ 3.759 million; Net profit after tax for the half-year of A$ 272,000; Cash reserves of A$ 6.662 million at the end of the first half-year. Click here for the full press release.
Marketing
AdultShop.com rebrands retail stores in Darwin The three adult retail stores owned by AdultShop.com in Darwin have all received an external facelift and have been rebranded to adultshop.com. The Stuart Park store is currently also receiving an internal makeover, which will increase its retail floor space by approximately 25% and will bring the store up to the standard of the newer Palmerston and Darwin City stores.
A major advertising and marketing campaign for the stores started this month, with print and radio advertising being used for the first time in the Northern Territory. The start of the advertising campaign also coincided with the one-day XXXPO on June 8 in Darwin, where AdultShop.com was the largest exhibitor.
Porn Divas turn heads at the Brisbane Sexpo and the Porn Star Party in Perth Two of the USA's most sizzling adult sensations, Devinn Lane and Sydnee Steele, headed to Australia for the 2002 Brisbane Sexpo, which took place from February 28 to March 3 at the Brisbane Convention and Exhibition Centre, Southbank. AdultShop.com secured the largest public display stand at the Sexpo, reflecting AdultShop.com's position as a market leader and strong involvement with the event nationally.
The sultry Devinn Lane, an adult film starlet, producer and model, has set the pages of numerous top men's magazines around the globe on fire. Sydnee Steele has been named Adult Video News (USA) Video Actress of the Year for her sizzling scenes, and this Wicked Pictures' star is one of the most spectacular performers to entertain the adult world.
The Wicked Pictures' starlets were special guests at the opening of the Brisbane Sexpo, performed live on stage and signed autographs at the AXIS stand daily.
At the completion of the Brisbane event, Devinn and Sydnee flew to Perth as the special guests at the AdultShop.com Porn Star Party.
The Porn Star Party was held on March 8 at Metro City in Perth. The girls performed at the party and were joined by male strippers, the Toy Boyz. With a prize on offer for the porniest outfit, many of the 1000 guests came in sexy costumes. The party received extensive coverage in local media (such as "The West Australian", 96fm, "The Sunday Times" and "X-Press Magazine") as well as in national publications such as "Picture Magazine" and online media such as "news.com.au".
The inaugural Adelaide Sexpo In 2002, the Sexpo Health, Sexuality & Lifestyle expo finally arrived in South Australia. The inaugural Adelaide Sexpo took place from May 2 to May 5 at the Royal Adelaide Showgrounds in Wayville. Amongst a wide variety of exhibitors, AdultShop.com had the largest public exhibit at the event, showcasing an extensive range of naughty toys for adults. Over the four days, the Adelaide Sexpo attracted close to 29,000 visitors.
Valentine's Day 2002 Besides Christmas, Valentine's Day is the most important gift-giving occasion for couples. A number of consumer magazines featured some of adultshop.com.au's most popular products for couples in their Valentine's gift ideas and Valentine's give-away promotions, providing AdultShop.com with excellent exposure to different target groups. Amongst others, AdultShop.com was featured in "Ralph", "B Magazine", "Men's Health", "NW", "internet.au" and "Perth Woman".
E-Tailing
Relaunch for AXISShop.com In March AXIS, Australia's largest distributor of quality explicit adult videos and DVDs, relaunched its website, offering the most comprehensive selection of erotica in Australia. The state-of-the-art site is extremely easy to navigate, displays front and back covers for most titles, features hundreds of video and DVD reviews and houses detailed biographies of favourite porn stars. The website also contains an extensive range of adult products, including sex toys, novelties, lotions and potions. A faster, more efficient and accurate search engine which was developed for the site makes it easier than ever to find the title or product you are looking for.
Orders are delivered discreetly and promptly - within 72 hours to most areas in Australia. You can find AXISShop at http://www.axisshop.com.
Vote for Australia's Penthouse Pet of the Year 2002 at www.adultshop.com.au For the first time, www.adultshop.com.au is hosting the online voting platform for the Australian Penthouse Pet of the Year poll. Voters are asked to make the difficult choice between the six gorgeous Pets of the past year. Each voter receives a gift voucher towards their next purchase at www.adultshop.com.au and enters the draw to win a 12-month subscription to the Black Label edition of Australian Penthouse and a $200 AdultShop.com Horny Hamper. Voting closes on 1 August 2002!
New Products
Nookii - The Board Game @ www.adultshop.com.au Nookii - the grown up game for playful couples is taking the world by storm! Designed to generate sexy fun for two, Nookii consists of 90 naughty and nice suggestion cards, 2 dice, 1 timer, sheer scarf, do not disturb sign and playing guidelines. With Nookii, you don't move around a board, you move around each other, and you can choose from three levels of play - from sweetly seductive to outrageously sexy.
New Lingerie and fetish gear @ www.adultshop.de The range of lingerie and fetish gear has been continuously expanded over the past few months and is now more exciting than ever! Check out the huge range of new items in our sections "New Lingerie" and "New Fetish Gear".
News Coverage
Projections capture attention of media and market AdultShop.com projections set Australian media abuzz in May. You can find some of the media coverage here http://investor.adultshop.com/news-oz.html
Again! Adultshop.de beats rivals in online shopping test The website www.adultshop.de has once again beaten a field of reputable competitors to secure first place in a online shopping test of ten German adult e-tailers. The test, carried out by German magazine "Online Today", judged design, navigation, product range, security and customer service aspects and gave adultshop.de an overall rating of 88 out of 100 points - 11 points ahead of the nearest rival.
Comdomi.com came second, shopping.beate-uhse.de and shop.orion.de, the web presences of the two largest German adult companies, took out places 4 and 5 respectively.
Summarising its findings, "Online Today" states that adultshop.de was an "appealing shop offering a very large product range and entertaining product descriptions. The multiple payment options are also praiseworthy."
The article was published in the May edition of "Online Today". The full article (in German) can be found here. http://investor.adultshop.com/news-GER.html
Upcoming Dates & Events:
Sydney Sexpo: July 18-21, Royal Hall of Industries at Fox Studios; Release of Cash Flow Statement for 4th Quarter 2001/2002 - end of July 2002; Release of Preliminary Final Report 2001/2002 - August 23, 2002; Voting for Australia's Penthouse Pet of the Year 2002 at www.adultshop.com.au closes 1 August 2002 (Australian and NZ residents only).
Please do not hesitate to contact me regarding any of the information within this newsletter or about any Investor Relations issues pertaining to AdultShop.com.
