Thursday, Global Traffic Network, Inc. (GNET), a provider of custom traffic and news reports, posted a loss for its fourth quarter ended June 30, attributable to difficult global economic conditions leading to "advertising slow down", as well as unfavorable currency exchange translations.
The New York-based company reported a net loss of $1.04 million or $0.06 per share compared with a profit of $0.93 million or $0.05 per share in the prior year period. On average, six analysts polled by Thomson Reuters expected a loss of $0.06 per share for the quarter. Analysts' estimates typically exclude one-time items.
Global Traffic Network's quarterly revenues jumped 23% to $17.97 million, surpassing Street View of $16.66 million, from $14.59 million in the comparable period. Geographically, revenues of $5.9 million from its UK operations, outweighed the 17% and 22% plunge in revenues from Australian and Canadian operations, respectively.
The group's Australian and Canadian quarterly revenues fell to $10.19 million and $1.84 million from $12.30 million and $2.29 million, respectively, impacted by unfavorable currency exchange translations. On a constant currency basis, Australian revenue rose 3%, while Canadian revenues decreased 7%.
For the recent fourth quarter, the group posted a net operating loss of $623 thousand compared to an operating profit of $1.64 million, hurt by increased operating expenses of $13.63 million compared to $8.31 million, despite a slight decline in selling, general and administrative or SG&A expenses to $3.85 million from $4.21 million.
On a year-to-date basis, the company posted a net loss of $1.08 million or $0.06 per share, compared with a net profit of $1.73 million or $0.10 per share last year.
Revenue for the period increased to $60.33 million from $50.95 million a year earlier.
GNET is currently down 7.58% at $4.39, on the Nasdaq.
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