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Poynt Corp. Provides Operational Update- Poynt announced formation of Joint Venture with People's Republic of China's China Youth League- Strong User Growth - 251% growth into 2012- Poynt Corp commences listing on OTCQX markets- On-device offerings highlight strong partnership opportun (February 17, 2012)
CALGARY, ALBERTA -- (Marketwire) -- 02/17/12 -- Poynt Corporation (TSX VENTURE:PYN)(OTCQX:PNYTF) ("Poynt Corp." or the "Company"), a global leader in mobile local search and advertising, has entered 2012 with strong partnerships, a growing user base and significant revenue opportunities.
Earlier this week, the Company announced the structuring of its first Asian operating entity, Poynt Asia (Hong Kong) Limited ("Poynt HK") and the formation of a Joint Venture (the "China JV" or "China Youth Poynt Limited") between Poynt HK and China Youth League's affiliated entity, China Youth Goyor Technology (Beijing) Co, Ltd ("China Youth Goyor").
As an initial objective of the China JV, China Youth Goyor will focus on obtaining the Chinese Ministry licenses required for conducting the business of China Youth Poynt Limited, securing data service agreements and preload agreements in China with major telecom companies, and facilitating consumer usage of the Poynt mobile platform in China (the "China Youth Poynt Platform"), initially among CYL's over 83 million members.
As an initial performance benchmark of the China JV, China Youth Goyor is to deliver at least 20 million active users by, on, or about February 2013 (not August 2012 as previously announced). This agreement will provide access to more users than all eight previously announced preload agreements signed by the Company globally. Based on preliminary discussions, China Youth Poynt Limited anticipates as many as 60% of CYL's membership may become active users (approximately 50 million active users) of the China Youth Poynt Platform. In total, CYL has an active membership base in excess of 83 million, which is larger than that of yelp's global user base.(i) Additionally, the China Youth Poynt Platform will be marketed by the China JV to the broader smartphone population in China. This rapidly growing market is expected to surpass 230 million(ii) users in 2012. Certain terms of the China JV are subject to the completion of all required due diligence and satisfaction of other customary conditions. The Company expects to complete this due diligence in the near term.
"We are at an exciting inflection point for Poynt Corp. with significant opportunities for growth and expansion," said Andrew Osis, CEO, Poynt Corp. "The announcement of our agreement with China Youth League highlights the valuable experience the Poynt Platform provides users globally and we look forward to leading the industry in providing a valuable service to the Asian marketplace."
"These new geographies provide access to large smartphone markets which can help drive Poynt Corp. revenues through increased user queries and transactions within the Poynt Platform," continued Osis. "As we focus on providing the best data available in all new Poynt Platform geographies, we anticipate that we will experience strong user uptake and retention in China as we have in all previous geographies."
The immense growth of the Poynt mobile Platform (the "Platform") has continued into 2012 with a unique user base of over 13.5 million at the end of January 2012, representing 251% growth compared to the same time last year. In the same month the Platform surpassed 2.7 billion user interactions, adding over 600 million interactions in just over two months. These numbers indicate both increasing adoption of the Platform as well as strong user retention. Both user retention and user adoption influence revenue growth for the Company, as user activity is monetized in a variety of ways including through user queries, pages views, on-page advertising and in-Platform transactions.
User growth is driven by targeted marketing, on-device offerings and preload opportunities, expanded availability across device platforms and global geographies, and expanded feature sets and engaging capabilities. In the past six months, Poynt Corp. has expanded users through all these factors, including two major preload deals, the addition of Gas Prices in the United Kingdom, an Offers feature for the United States, improved data partnerships globally, and the launch of timesPoynt for the Indian market. Strong partnerships have been instrumental in the success and growth of the Poynt Platform as reliable data and ease of discoverability can greatly influence user growth and retention.
On January 9, 2012 Poynt Corp shares commenced trading on the OTCQX markets under the symbol "PNYTF". Poynt Corp's listing on the OTCQX offers a growing US investor base ease of accessibility to information as well as trading capabilities.
The Company continues to demonstrate reflects strong positioning as reflected by our expansion into China, as well as favorable trends globally. The Company believes they are strategically positioned with industry leading technologies to capture market share and drive revenues going forward.
Poynt is available as a free download for users in France, Spain, Canada, the United States, the United Kingdom, Germany, Italy, Australia and India on Nokia devices, Android, iPhone, Windows Phone, BlackBerry smartphones and BlackBerry Playbook tablet from the respective App Stores. Poynt is also available via mobile browser as a free download at m.poynt.com.
(i) Yelp Form S-1/A filed on Jan-11-2012
About the Poynt Platform
Poynt is a convenient and timesaving GPS-enabled mobile local search and advertising platform that connects consumers to local offers, businesses, events, restaurants, movie theatres, gas prices and weather information at the moment they are looking to buy or acquire products or services. Poynt provides consumers with the ability to move beyond discovery of their local area to view movie trailers and reviews, buy movie tickets, click-to-call businesses, get directions, browse listing websites, read reviews and book dining reservations or find and interact with local coupons and offers.
Poynt provides contextual and relevant advertising to users performing local queries and its revenue model is based on user queries, page views, advertising and transactions within the platform. Each user query generates several page views, which are monetized through display advertising and sponsored listings paid for by advertisers. These advertising placements generate revenues on a cost per thousand impressions (CPM) basis or on a cost per click (CPC) basis. Transactions, such as ticket sales and restaurant reservations, also contribute to revenues on a fee for service basis.
About Poynt Corporation
Poynt Corp. (about.poynt.com) (TSX VENTURE:PYN)(OTCQX:PNYTF) is a global leader in the mobile local advertising space. Its Location Based Search (LBS) and advertising platform, Poynt (www.poynt.com), enhances a user's ability to connect with the people, businesses and events most important to them. Poynt is available on Android, iPhone, Windows Phone and Nokia devices, along with BlackBerry smartphones and BlackBerry PlayBook Tablets in Canada, the United States, Europe, India and Australia. Poynt Corp. entered the mobile publishing space with the acquisition of an advertising publishing platform in January 2011. Whether through the Poynt Local Search Platform or the Ad Publishing Platform, Poynt Corp. simplifies connecting consumers with businesses, retailers and events. Headquartered in Calgary, AB, Canada, Poynt Corp. trades on the TSX Venture Exchange under the symbol PYN and in the United States on the OTCQX under the symbol PNYTF.
Important Cautions Regarding Forward-looking Statements
This news release contains forward-looking statements relating to: anticipated user rates of the China Youth Poynt Platform in China; the ability of CYL to deliver and introduce the China Youth Poynt Platform to its members; estimates of the number of future smart phone users in China; the expected role of CYL in furthering the business of the China JV; the opportunities for expansion in the Asian market; terms of the China JV, including satisfaction of all items and conditions relating to the commencement of the China JV's operations; anticipated user uptake; timing of completion of due diligence; growth opportunities; effect of access to large smart phone markets on user queries and transactions and revenues; effect of providing data in new geographies on user uptake and retention; effect of strong partnerships on successful growth of the Poynt Platform; effect of the Company's position within industry leading technologies on market share and revenues; and other statements that are not historical facts. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The results or events predicated in these forward-looking statements may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on these forward-looking statements.
These forward-looking statements are based on certain key assumptions regarding, among other things: the ability of the China JV to obtain anticipated permits, contracts and penetration of the market in China; the acceptance rate of the China Youth Poynt Platform by users; the anticipated number of devices on which Poynt will be virtually preloaded or made available as a preload; the ability of CYL to introduce the China Youth Poynt Platform to its members at the rates anticipated, or at all; future technological developments; delays bringing the China Youth Poynt Platform to market; the ability of the China JV to consummate agreements with local companies in China necessary to facilitate the roll-out of the China Youth Poynt Platform in China; the ability of Poynt to successfully repatriate funds generated in foreign jurisdictions; compliance by Poynt and its partners of applicable foreign corrupt practice legislation; reliance on in-country staff and personnel to run and efficiently manage the China JVs business; the cost of expanding product lines; the impact of increasing competition; the continuity of existing business relationships, including dependence on CYL and its associated and affiliated entities; the continued successful development, implementation and execution of the Poynt platform; continued growth in number of active users of the Poynt platform; conditions in general economic and financial markets; the ability to complete previously announced transactions; ability to obtain all necessary regulatory approvals; and our ability to obtain financing on acceptable terms, including Poynt's ability to finance its future commitments relating to the China JV.
Material risk factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to: the inability of the China JV to successfully commence operations in the timeframes anticipated, or at all; the inability to secure contracts, permits and all other regulatory approvals related to the China JVs business; the incorrect assessment of the Chinese market and the potential benefits of the China JV; the inability of Poynt Corp. to fund its obligations; reliance on third parties; risks in conducting business in China, including (but not limited to) government nationalization, currency risks, inflation and compliance with domestic laws and regulations; risk that the China JV will not be able to comply with all applicable laws in conducting its business, including, but not limited to foreign corrupt practices legislation; the acceptance rate of the China Youth Poynt Platform by smart phone users is lower than anticipated; the risk that China Youth Poynt Platform will not be virtually preloaded or made available as a preload on the anticipated number of devices; the inability of CYL to introduce the China Youth Poynt Platform to its members at the rates anticipated, or at all; the inability of the China JV to consummate agreements with local companies in China necessary to facilitate the roll-out of the China Youth Poynt Platform in China; the deteriorating economic and market conditions that could lead to reduced spending on information technology products; competition in our target markets; potential capital needs; management of future growth and expansion; the development, implementation and execution of the Company's strategic vision; risk of third-party claims of infringement; protection of proprietary information; customer acceptance of the Company's existing and newly introduced products; the success of the Company's brand development efforts; risks associated with strategic alliances; failure of counterparties to perform on contracts; failure to successfully negotiate contracts; failure to successfully negotiate additional preload agreements; reliance on distribution channels; product concentration; need to develop new and enhanced products; failure to obtain necessary regulatory approvals; potential product defects; our ability to hire and retain qualified employees and key management personnel; risks associated with changes in domestic and international market conditions and the entry into and development of new markets for the Company's products; and the risks described under "risk factors" in our Annual Information Form for the year ended December 31, 2010 which is available on our SEDAR profile (www.sedar.com).
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on expectations of, or statements made by, third parties in respect of the forward-looking statements identified above.
The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. Apple App Store and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. Windows is a registered trademark of Microsoft Corporation in the United States and other countries. Android is a registered trademark of Google Inc. Nokia is a registered trademark of Nokia Corporation.
Neither the 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.
Andrew Osis, CEO
European Media Communications Contact:
CC-Group Communications Ltd., for Poynt Corporation
Nicole Littlewood or Howard Jones
+44 118 920 7650
North American Public Relations Contact:
Global Results PR for Poynt Corporation
Valerie Christopherson or Lora Friedrichsen
Investor Relations Contact:
Liolios Group, Inc.
Scott Liolios or Matt Glover
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