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Prodigy Ventures Inc. Announces Financial Results for the Three and Nine Months Ended December 31, 2015

Toronto, Ontario--(Newsfile Corp. - April 15, 2016) - Prodigy Ventures Inc. (TSXV: PGV) ("Prodigy" or the "Company") today announced results for the three and nine months ended December 31, 2015.

"We are very pleased to report that Prodigy experienced record revenue and profit for the quarter. Our strong positive cash flow enabled additional investment in our venture business and we successfully relaunched iVideo on multiple platforms as a unique social video app," said Prodigy CEO Tom Beckerman. "We are diversifying and expanding our client base to drive service revenue growth, and increasing development investments in our new ventures in mobile video, proximity, wearables 3D and augmented reality".

Financial and Operational Highlights:

The Company changed its year-end from March 31st to December 31st during the period. As a result, the current transition year covered the nine-month period from March 31, 2015 to December 31, 2015. As such, the results from the previously audited year-end are not directly comparable.

  • Revenue of $2,576,342 and $6,187,766 for the three and nine months ended December 31, 2015, a year-over-year increase of 193% and 127% respectively;
  • Gross profit of $1,022,809 and $2,265,468 for the three and nine months ended December 31, 2015, a year-over-year increase of 406% and 300% respectively;
  • Basic and diluted earnings per share of $0.00 and $0.01 for the three months and nine months ended December 31, 2015, compared to $Nil in the comparable periods;
  • Ended the year with working capital of $1,135,010;
  • Relaunched iVideo on multiple platforms, as a unique social video app.

Nine months ended December 31, 2015:

Operating results for the nine months ended December 31, 2015 compared to the year ended March 31, 2015 are discussed below.

Total revenue for the nine months ended December 31, 2015 increased $3,457,068 from $2,730,698 in the prior year to $6,187,766, an increase of 127% despite the shorter reporting period. The increase in revenue was due to a number of new service contracts entered into during the year.

Direct costs for the nine months ended December 31, 2015 increased $1,757,561 from $2,164,737 in the prior year to $3,922,298, an increase of 81%. Direct costs are expected to increase in relation to changes in revenue.

Gross profit increased $1,699,507 from $565,961 to $2,265,468. The net and comprehensive income for the nine months ended December 31, 2015 increased $401,466 from $159,229 to $560,695.

Net income per share was $0.01 for the nine months ended December 31, 2015 and $Nil for the comparative period ending March 31, 2015.

Total expenses for the nine months ended December 31, 2015 increased from $375,853 to $1,492,015. The increase year-over-year relates primarily to management fees and compensation, research and development and professional and listing costs paid in connection with the Qualifying Transaction with 71 Capital Corp. With the transaction now complete, total expenses are expected to decline in the short-term but will increase over time as the Company continues to grow.

Management fees and compensation for the nine months ended December 31, 2015 increased $334,105 year- over-year from $113,525 to $447,630. The increase relates to the hiring of additional administrative staff and the payment of management bonuses during the year. The overall cost is expected to increase as the Company grows.

Professional fees for the nine months ended December 31, 2015 increased $376,676 year-over-year from $14,359 to $391,035, primarily a result of filing and listing as well as legal and advisory costs associated with the Qualifying Transaction. This includes $164,922 of fees paid through the issuance of common shares.

Research and development expenses for the nine months ended December 31, 2015 increased $231,624 year- over-year from $137,348 to $368,972, as a result of increased spending on the Company's venture builder business. Future increases or decreases will vary based on the status of projects in development.

The Company had working capital of approximately $1,135,010 as at December 31, 2015 (March 31, 2015 —$212,250). The Company has had positive cash flow from operations for the nine months ended December 31, 2015. Management believes that it will have sufficient capital to fund its operations for the next twelve months.

Quarter ended December 31, 2015:

Total revenue for the three months ended December 31, 2015 increased $1,695,601 year-over-year from $880,741 to $2,576,342.

Direct costs for the three months ended December 31, 2015 increased $875,028 year-over-year from $678,505 to $1,553,533. Direct costs are expected to increase in relation to changes in revenue.

Gross profit for the three months ended December 31, 2015 increased $820,573 year-over-year from $202,236 to $1,022,809.

The net and comprehensive income for the three months ended December 31, 2015 increased $189,838 from $77,709 to $267,547.

Net income per share was $0.00 for the three months ended December 31, 2015 as compared to $0.00 in the prior year.

Total expenses for the three months ended December 31, 2015 increased from $109,173 to $637,394. The increase year-over-year relates primarily to management fees and compensation and research and development.

Management fees and compensation for the three months ended December 31, 2015 increased $275,506 year- over-year from $31,156 to $306,662. The increase relates to the hiring of additional administrative staff and the payment of management bonuses during the period.

Research and development expenses for the three months ended December 31, 2015 increased $138,704 from $59,495 to $198,199 as a result of increased spending on the venture builder business. Future increases or decreases will vary based on the status of projects in development.

A full set of audited financial statements and related notes have been filed on SEDAR and are available on the Company's website at www.prodigy.ventures.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company. These include, but are not limited to, the ability to continue to grow the Company in the coming years, the continued development and success of iVideo and the development of further versions of iVideo. The forward-looking statements or information contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

About Prodigy Ventures Inc.

Prodigy Ventures is an innovation company that has combined an enterprise services business - Prodigy Labs - with a Venture Builder business. The two businesses work together to sell services and create new enterprise-grade platforms and apps using technologies such as mobile video, proximity, wearables, 3D & augmented reality.

FOR FURTHER INFORMATION PLEASE CONTACT:
PRODIGY VENTURES INC.
Andrew Hilton
Chief Financial Officer
Andrew.Hilton@Prodigy.Ventures

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