eVentures New Zealand Announces Interim Result
Internet accelerator company eVentures New Zealand Limited
its first interim result. The company incurred an operating loss of $2.61 million for the six months ending 30 June 2000. eVentures New Zealand Chairman, Craig Heatley, said that this loss was in line with budget and included normal costs associated with the start-up of a company and its trading businesses.
eVentures was incorporated in January 2000 and successfully raised $30 million in an Initial Public Offering in May 2000. Its objective is to be at the forefront of e-commerce and internet investment in New Zealand. The eVentures business model is based around launching leading international e-commerce brands in New Zealand, providing them with investment capital, strategic resources and management services. eVentures will also provide investment and incubation services to selected New Zealand businesses.
"While eVentures does not expect to report operating profits within the next two years we do anticipate achieving considerable capital growth through investments in launched companies," said eVentures Chief Executive Officer, Cindy Mitchener.
During the first six-month period eVentures has established the complete resource infrastructure for its internet accelerator business and has successfully launched two companies - online home loan provider E-LOAN New Zealand and MessageMedia, which provides advanced e-messaging solutions. Ms Mitchener said both businesses are actively trading and now generating revenues.
E-LOAN New Zealand Ltd was launched on 21 June 2000. Trading to date has been ahead of budget. Ms Mitchener said this was particularly encouraging given the current weak condition of the home loan market.
"E-LOAN is making its mark with online consumers, with benchmark research positioning the company as the third most recognised online home loan provider in New Zealand," said Ms Mitchener. E-LOAN offers the only free, truly comparative online lending service in New Zealand.
Consumer response to the E-LOAN proposition has confirmed the company's belief that finance is a fast growing area within the online market. E-LOAN is confident that it can achieve a substantial position in this environment.
MessageMedia New Zealand Ltd was launched in July 2000. In the first few weeks of operation, there has been substantial interest in MessageMedia's ASP product UnityMail, which is recognised as the leading e-messaging solution in the US today. MessageMedia has already carried out mailings for four clients, and has commitment from a wide range of businesses to develop strategies and send messages over the next few months.
While e-messaging is in its infancy in New Zealand, businesses are looking for solutions to fast track their move into online relationship marketing. MessageMedia, with its advanced range of capabilities, allows businesses to create e-mail marketing campaigns, target consumers by behaviour, interests or demographics, drive traffic and measure results. Clients can use the most advanced e-messaging technology without incurring any of the costs involved in development, installation or ongoing maintenance.
Progress has been made with the NZ Venture Capital division of the business, with a number of business proposals having been submitted for review. It is anticipated that the best of these will be presented to the Board with a view to taking an investment where significant opportunities are anticipated for eVentures.
eVentures has completed a strategic review of the New Zealand market and has identified six key sectors which offer valuable opportunities.
"We are actively pursuing opportunities in these sectors, including businesses that provide one-stop-shop e-commerce solutions and those which provide services and tools to enable the mobile internet. We are working in the Australasian marketplace to identify partners, clients and strategic alliances for our investments.
"We are satisfied with eVentures NZ Ltd's progress and feel confident that our short to medium term strategy will add to the value created by the launch of E-LOAN and MessageMedia in New Zealand," said Ms Mitchener.
eVentures NZ Ltd's cornerstone shareholder is eVentures Partnership, which is a partnership between two leading international participants in the internet, e-commerce and new media fields - SOFTBANK and epartners (a venture capital fund in which the primary investor is News Corporation). Both bring significant international experience and commitment to eVentures in New Zealand. In addition, Craig Heatley and three of New Zealand's leading corporates - Telecom, The Warehouse and Todd Capital - have a shareholding in eVentures.
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For further information contact: Cindy Mitchener Chief Executive Officer, eVentures New Zealand 0-9-359 5000
Craig Manning Chief Financial Officer, eVentures New Zealand 0-9-359 5000