Noteworthy Stock: NTN Buzztime, Inc.’s (NYSE: NTN)

On 07 Dec 18, NTN Buzztime, Inc.’s (NYSE: NTN) closed with gain/decline of 8.01% to $2.17. Recent traded volume was 1,774,881 shares versus to it an average volume of 38,901 shares. The company holds 2.86M shares outstanding and market cap of 6.21M. The stock’s day range was recorded between a low of $2.13861 and a high $2.7700. The one year high of the company is $1.8900 and the one year low is $8.4000.

NTN Buzztime, Inc. (NTN), stated financial results for the third quarter ended September 30, 2018.

“Third quarter 2018 delivered 15.5% revenue growth over third quarter 2017; stated positive net income for the first time since 2012; and reached $1.1M in EBITDA, over double third quarter 2017,” stated Ram Krishnan, NTN Buzztime CEO. “The results reflect our diversification strategy, which includes focusing on hardware sales, licensing content, and entering new markets. To drive future growth, we continue to invest in advancing our technology platform and extending our solution suite. Leveraging our foundation interactive entertainment, we are developing new options in functionality, form factor, and mobility culminating in an entry-level price point option that we expect to broaden market appeal.”

Recent Highlights

  • Delivered initial round of tablets to partner in the jail service industry.
  • Released a Quick Service and Fast casual mode that combines the order and payment, which generated interest at October’s FSTEC conference.
  • Raised player engagement with sweepstake promotions that drive the network effect and venue traffic for consumers.
  • Positioned to release an entry-level or capital-light offering in the first quarter of 2019, new elements include

“We believe our lighter offering will enhance our value equation, raise our market potential, give players way more places to play, expand our audience through mobile downloads, and improve our ability to scale. All of which, we believe will create shareholder value,” concluded Krishnan.

Financial Results for the Third Quarter Ended September 30, 2018


Total revenues were $6.0M, up 15.5% from $5.2M in the third quarter of 2017, as hardware revenue raises offset lower subscription revenue. Direct costs were $2.1M and gross margin was 65%, contrast to $1.5M and 70% for the same period in 2017, reflecting higher equipment lease revenue, which carries a higher cost and lower margin. Selling, general and administrative expense was $3.4M, or 57% of revenue, down from $3.6M, or 70% of revenue, in the previous year quarter. Net income was $222,000, or $0.08 per share, improved from a net loss of $184,000, or $0.07 per share, in the previous year quarter.  EBITDA was $1.1M, contrast to $517,000 in the third quarter of 2017.

Liquidity
Cash and cash equivalents were $3.1M at September 30, 2018, contrast to $3.4M at December 31, 2017. Total deferred revenue was $2.5M, down from $3.6M at December 31, 2017. Working capital was $3.0M at September 30, 2018, improving $4.1M from negative $1.1M at December 31, 2017.

NTN plunged -13.89% in past week and declined -43.19% in one month. During the past three month period the stock dropped -58.30% and decreased -49.88% in past six month. During the twelve month it lost -60.55% and year to date performance of -48.46%.

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