Hollywood Media reveals MovieTickets.com numbers

Apr. 8.05 | About: Hollywood Media (HOLL)

Hollywood Media (ticker: HOLL) published its 10-K,
in which for the first time it provided revenue and income numbers for
MovieTickets.com. Hollywood Media owns a minority 26% stake in
MovieTickets.com, so its revenues and income are not included in HOLL's
numbers. Until now there has been no disclosure of the actual numbers.
Here are the relevant extracts from the 10-K, including revenue and
income for MovieTickets.com for 2002-2004:

MovieTickets.com is one of the two leading website
destinations for the purchase of movie tickets through the Internet;
its principal competitor (other than some theaters that may conduct
their own Internet ticket sales) is Fandango. The MovieTickets.com
website allows users to purchase movie tickets and retrieve them at
"will call" windows or kiosks at theaters. The website generates
revenues from service fees charged to users for the purchase of tickets
and the sale of advertising. MovieTickets.com has been selected by AOL
(including AOL Moviefone), MSN Network, Lycos Entertainment, Real
Networks, Earthlink, The New York Times website, and several other
premier online destinations as the exclusive provider for online movie
ticketing services.

         Hollywood Media launched the MovieTickets.com website in
May 2000 with several major theater exhibitors. Hollywood Media
currently owns 26.4% of the equity of MovieTickets.com, Inc. See Item 7
- Management's Discussion and Analysis of Financial Condition and
Results of Operations - Equity in Earnings of Investees, for additional
information about our equity interest in MovieTickets.com, Inc.
MovieTickets.com, Inc. entered into an agreement with Viacom Inc.
effective August 2000 whereby Viacom Inc. acquired a 5% interest (now
4.2%) in MovieTickets.com, Inc. for $25 million of advertising and
promotion over five years. In addition to the Viacom advertising and
promotion, MovieTickets.com is promoted through on-screen advertising
in most participating exhibitors' theaters. In March 2001, AOL
purchased a non-interest bearing convertible preferred equity voting
interest in MovieTickets.com, Inc. for $8.5 million in cash, which was
convertible into common stock of MovieTickets.com, Inc. In connection
with the2001 transaction with AOL, MovieTickets.com's ticket inventory
began to be promoted throughout America Online's interactive properties
and ticket inventory of AOL's Moviefone became available through
MovieTickets.com. Through an agreement in August 2004 between
MovieTickets.com and AOL's Moviefone, MovieTickets.com has acquired by
assignment and assumed the ticketing agreements that Moviefone had with
its movie theater exhibitors, bringing the number of exhibitors
MovieTickets.com directly tickets for to over 30. The Moviefone
exhibitor agreements assumed by MovieTickets.com include agreements
with Clearview Cinemas and Landmark Theatres.

         MovieTickets.com exhibitors currently include AMC Theatres,
Consolidated Theatres, Crown Theatres, Famous Players, Hoyts Cinemas,
Krikorian Premiere Theatres, Marcus Theatres, Metropolitan Theatres,
National Amusements, Northeast Cinemas, Pacific Theatres, Phoenix
Theatres, Rave Motion Pictures, Ritz Theatres, Sayville Theatre,
Spotlight Theatres, Baederwood Movie Theatre Co., the Bryn Mawr Movie
Theatre Co., the Narberth Theatre, Cinemagic Movies, Brooklyn Academy
of Music, Cinema Four-Quad, Classic Cinemas, Clearview Cinemas,
Dickinson Theatres, Entertainment Retail (Hollywood Hits), Kew Gardens
(Cobble Hill), Harkins Theatres, KLM Theatres, Landmark Theatres, Mann
Theatres, Reading Cinemas USA (City Cinemas), and Six West (Paris/NY
Twin). MovieTickets.com exhibitors operate theaters located in all of
the top 20 markets and approximately 70% of the top 50 markets in the
United States and Canada, and represent approximately 50% of the top 50
and top 100 grossing theaters in North America. Additionally,
MovieTickets.com launched in the United Kingdom in July of 2003.

         Hollywood Media performs collections, billing, payroll and
other related expenses and net revenues (less commissions) are
submitted to MovieTickets.com upon receipt by Hollywood Media.

         The revenues, gross profit and net income (loss) of
MovieTickets.com for the fiscal years ended December 31, 2004, 2003 and
2002 are presented below:

                                         Year Ended December 31,
                                   2004                2003               2002
                                -----------        ------------       ------------
Revenues                 $11,246,202   $ 8,703,343    $ 4,714,925
Cost and Expenses     10,730,258      8,749,186       5,726,260
Net Income (loss)       543,028             (24,334)        (946,745)

         The cash, accounts receivable and accrued expenses and
other liability balances of MovieTickets.com for the fiscal years ended
December 31, 2004, 2003 and 2002, which are not included in Hollywood
Media's consolidated balance sheet, are presented below:

                                                Year Ended December 31,
                                                  2004               2003
                                                ----------         ----------
Cash                                     $3,850,918      $2,752,695
Accounts Receivable                1,775,536        1,718,112
Accrued Expenses and
     Other Liabilities                 1,508,777           738,383

HOLL chart below.
Full disclosure: at the time of writing I'm long HOLL.