Roo Revenues Up 78% In Second Quarter As Operating Loss Doubles
Net operating loss more than doubled to $7.5 million, compared with $3.3 million year-over-year. As of June 30, the company said it had a cash and cash equivalents balance of approximately $23.8 million.
Roo Chairman and CEO Robert Petty said the number of the company's video players deployed more than doubled during the quarter, from 400 to 880, with another 350 "in the pipeline."
Web sites activated during the period included the MTVu College Publisher Network in the U.S. and the Sunday Mirror in the U.K. On the content syndication front, Roo grew from 1,500 videos a day at the beginning of the quarter to over 3,000 videos at its end, and expanded its sports vertical with the addition of YES Networks and Collegiate Images to its syndication roster.
Other Roo developments during the quarter included a partnership with Tribal Fusion for a contextual video advertising product. And after the quarter closed, Roo completed a $4.3 million acquisition of assets of peer-to-peer company Wurld Media, which Petty said "enables us to offer a hybrid streaming P2P platform that will provide enterprise businesses with a stronger, more robust solution for the delivery of online video and targeted advertising solutions."
Roo has also begun segmenting its revenues into two business areas: Online Digital Media and Advertising Agency, with the former offering the greater growth opportunity.
Online Digital Media, the company said, "spans all aspects from Web site creation and supply of technology, to content and delivery of static and video assets, online property development and management, and monetization of video through advertising sales."
The Advertising Agency part of Roo's business, meanwhile, "provides varied forms of media and services including direct marketing, incentive programs, internal communications, CRM, brand planning, sales promotion, creative, brand identity, sponsorships, on-line marketing, new media, media planning, media buying and packaging."
During the second quarter, revenues in the Online Digital Media segment were $2.2 million--an increase of 146% year-over-year, from revenues of $0.9 million. Revenues in the Advertising Agency segment were $1.3 million--an increase of 22% year-over-year, from $1.1 million.