SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of October, 1998
OZEMAIL LIMITED
ACN 066 387 157
OZEMAIL CENTRE, 39 HERBERT STREET, ST. LEONARDS NSW 2065, SYDNEY, AUSTRALIA
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F X * Form 40-F
--- ---
(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3- 2(b) under the Securities Exchange Act of
1934.)
Yes No X
--- ---
- ---------------
*As a foreign private issuer, OzEmail Limited ("OzEmail") is eligible to
file annual reports under cover of Form 20-F or Form 10-K.
1.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
OzEmail Limited
---------------
(Registrant)
Date: November 6, 1998 By: /s/ Malcolm Turnbull
-----------------------------------
Name: Malcolm Turnbull
Title: Director
2.
<PAGE>
EXHIBIT INDEX
Exhibit
- -------
99.1 Press Release - New Content Offerings
99.2 Press Release - Network Services for American ISP
99.3 Press Release - CD Catalogue
99.4 Press Release - Celebrities Fight Against Breast Cancer
99.5 Press Release - Third Quarter Earnings
3.
N E W S R E L E A S E
OzEmail - Australia's first and best online destination
FOR MORE INFORMATION CONTACT:
Michael Ward - Sydney, Australia - (612) 9433 2498, 0411 533 000
Sydney, Australia, 6 October, 1998 - OzEmail Limited (NASDAQ: OZEMY), the
leading provider of comprehensive Internet services in Australasia issued a
challenge to new entrant AOL by releasing further additions to its online
content services.
"We've been providing Internet access and the best of Australia's content for
several years now," said OzEmail Chief Executive Officer, Sean Howard. "Today
I'm pleased to release the latest additions to our extensive range of content
offerings that have made ozemail.com.au Australia's portal of choice on the
Internet."
Released today, MyWeather offers the latest comprehensive weather information
for all capital cities and major regional areas in Australia. At MyWeather,
users can view four day forecasts, today's temperature, humidity, wind, pressure
and dewpoint details, view satellite pictures and check warnings for winds,
floods and fires.
The Australian Bureau of Meteorology supplies the service's forecast and
conditions information. In coming months, MyWeather will also feature email
alerts and international weather conditions. MyWeather is available free to all
Internet users at www.myweather.com.au.
"StockWatch was OzEmail's first content service and remains one of our most
popular," said Mr Howard. "As a natural extension to StockWatch, we are pleased
to offer 'market depth'. This feature provides the active investor with details
of the 'buy' and 'sell' offers for the first ten price levels of each stock in
real-time."
To encourage and help foster the exchange of investment and financial knowledge
among Internet users, OzEmail StockWatch has developed an online share
discussion forum: StockWatch Exchange. Like Silicon Investor and The Motley Fool
in the US, the StockWatch Exchange is a place where ASX investors can share
their views about stocks and the market with people from all over the world.
"Our business is bringing people online to do their business - StockWatch and
the new Exchange service are doing just that," said Mr Howard.
In the coming weeks OzEmail intends to launch MyFinance, a personal financial
services site offering free comparisons on various commodities such as credit
cards, phone rates and interest rates, loans, insurance, investment products and
real estate.
"MyFinance will bring together the best advice on how you should manage your
money," said Mr Howard. "At OzEmail, we are building the content services
1
<PAGE>
Australians want and our refreshed home page makes navigating the web as easy as
'point and click'."
The OzEmail Web site is available at www.ozemail.com.au
A brief description of OzEmail's content services follows:
PRODUCT BUSINESS BRIEFS FOR OZEMAIL ONLINE SERVICES
Services free for OzEmail Subscribers
NEWSWATCH - www.newswatch.com.au
NewsWatch is an online news service delivering international and Australian news
direct to OzEmail customers from AAP and Reuters. Unlike other Australian news
services, the news updates continuously and OzEmail customers are offered the
opportunity to customise news to fit their own profile and to receive email
alerts on news topics of their choice.
STOCKWATCH - www.stockwatch.com.au
Using a direct feed from the Australian Stock Exchange, StockWatch offers access
to real-time share prices, ASX indices, company announcements and market
summaries. Additionally, StockWatch users can generate online charts of weekly,
monthly and yearly stock prices and volumes, build personal portfolios of up to
50 stocks and read business and finance information, receive email alerts and
analysis of selected stock trades; provision of market depth including offers
and buys and the stock message boards for trading comments.
OzEmail Services Free to All Internet Users
THE STOCKWATCH EXCHANGE- http://exchange.stockwatch.com.au
"The StockWatch Exchange" is a free website offered by OzEmail StockWatch to
enable users to post questions and exchange information, views, opinions and
experiences with each other.
There are also dedicated areas for the Top 50 Australian Companies - for example
BHP, Commonwealth Bank, Telstra and many others. Here you can discuss these
companies and their stock offerings in more depth with like-minded investors.
SPORTSWATCH - www.sportswatch.com.au
Jointly sponsored by OzEmail and Pacific Magazines through their publication
"Total Sports", SportsWatch is the premier online sports service in Australia.
2
<PAGE>
The service is based on the NewsWatch technology and features both a specialised
sports feed supplied by AAP and editorial content from Total Sports magazine and
OzEmail, with an emphasis on special features covering world sporting events.
Highlights include live audio streaming of major sporting fixtures ranging from
snowboarding competitions to the AFL grand final. The service also features
personalisation, email alert services, downloadable screensavers and various
competitions.
LAWNET - www.lawnet.com.au
LawNet is an online information service focussed on the legal sector. It is
available at no charge to all Internet users. The service currently acts as a
marketing vehicle for OzEmail and as a delivery mechanism for third party
content and the provision of electronic commerce services in exchange for
revenue share from the sale of third party products. LawNet is widely known
within the Australian legal sector.
PRESS RELEASE CENTRE - www.pressrelease.com.au/
The PRC acts as a gateway for the distribution of press releases via the PRC web
site and customised email delivery to end users. The PRC technology is being
rolled out through StockWatch, LawNet and other online services and is being
further developed for the delivery of other time-sensitive information as well
as traditional press releases.
OZEMAIL WEATHER - www.myweather.com.au
MyWeather is one of the first Australian Web-based services to offer such
comprehensive weather information for all-capital cities and major regional
areas in Australia. The service's forecast and conditions information is sourced
directly from the Australian Bureau of Meteorology.
MyWeather users can view four day forecasts, access today's current temperature,
humidity, wind, pressure and dewpoint details, view satellite pictures and read
warnings including winds, flooding and fires. In coming months, MyWeather will
also feature international weather conditions and alert serviced.
SOUTHERN CROSS EMAIL SEARCH - www.southernx.aust.com
SouthernX is the premier Australian and New Zealand email search product that
offers a quick, easy and effective resource to find both personal and
organisational contact addresses. Its innovative design provides users with the
most advanced email search facilities available.
ANZWERS - www.anzwers.com.au
ANZWERS is both a World and regional search engine designed to meet the needs of
Australian and New Zealand users. ANZWERS provides access to over 4.5 million
indexed documents from both countries while still providing access to over 110
million documents worldwide. ANZWERS has recently been redesigned to incorporate
3
<PAGE>
a popular directory service from LookSmart. The Directory has been is called
ANZWERS Explore.
ITRAVEL - www.itravel.com.au
itravel is a Web-based travel service that enables Internet users to research,
plan, book and pay for all their travel arrangements online. iTravel is the
result of a partnership between Australia's largest wholesaler of airfares
"Concorde International", a leading international integrator of online
e-commerce enabled travel platforms "Leisure Planet" and a leading online
CRS/GDS (Central Reservation System/ Global Distribution System), World Span.
This strategic alliance will allow the Internet user to explore destinations
through a library of travel guides and book airfares, hotels and cars online.
The site also offers travel insurance online, holds regular competitions through
its iTravel Club and provides a best fare offering to members.
ONLINE GAMES NETWORK (OGN) - www.ozemail.com.au/games_index.html
OzEmail's Online Games Network (OGN) is a comprehensive games site supported by
dedicated servers for people to play multi player online games. The web site is
the front end for the OGN system. All games that are running on the games
servers are supported and documented in easy to use tutorial style documentation
located on the site. OGN also includes competition ladders, chat forums, clan
grouping and other community tools.
MYMAIL - www.mymail.com.au
MyMail is OzEmail's free Web-based email service. MyMail users have the ability
to read, reply, delete or compose mail items from any browser once they have
provided their user name and password and been authenticated by their usual ISP
or corporate server. Users are able to send and receive attachments as well as
forward mail items just as they would on their normal personal computer.
MyMail has been designed as a casual alternative to a user's normal access
method and has been made flexible enough to access the email account of any
supported ISPs though, initially, the service will be offered only to customers
of a select group of Australian ISPs.
CHAT CITY- www.chatcity.com.au/
Chat City is an easy to use chat program that can be accessed through any
Netscape or Internet Explorer web browser. Chat City is Australia's first Chat
community of its kind that is designed for the majority of Internet users that
are not technically orientated. The program is simple to set-up and start
chatting. Chat City has a range of rooms that cater to different communities of
interests.
4
<PAGE>
OZEMAIL BUDDY
OzEmail Buddy is an instant messaging program that is the first Australian based
product of its kind. With OzEmail Buddy, users can message their friends in real
time, faster then email, see if their friends are online when they are, enable
private real time chat, and provide a way to find a friend online where ever
they maybe.
LEARNING CENTRE - www.learningcentre.aust.com
The Learning Centre is designed to help both first time and advanced Internet
users learn how to get the most out of using the Internet. The Learning Centre
is divided into three sections: - Absolute Beginner's Guide, Learning Central
and 5 Minute Expert. The three sections help brake down the information into
easy to understand segments. A special viewer has been developed to make it easy
to navigating through the range of plain English tutorials.
FAMILY CENTRE - www.ozemail.com.au/internet/family/index.html
The Family Centre is a family-friendly web guide with content areas such as
4Kids, Family Life, Getaway, Computing, Finances, and tutorials. The Family
Centre is full of hints, tips and links to help families learn how to use the
Internet. The Centre is also a useful guide to help parents understand how to
protect their family while using the Internet.
SMALL BUSINESS CENTER - www.members.ozemail.com.au/business
The Small Business Centre provides information and a guide to online resources.
To enable easy navigation, the site is broken down into six content areas called
Your Business, Finance, Leveraging, Reading Room, Solutions, and Tutorials. The
Centre is full of hints, tips and links designed to help the small
businessperson to better understand how the Internet can be an effective
business tool and resource.
5
N E W S R E L E A S E
OzEmail Announces Major Network Services Contract To Support American
Internet Service Provider
FOR MORE INFORMATION CONTACT:
Michael Ward - Sydney, Australia - (+61 2) 9433 2400
Todd Friedman - San Francisco - (415) 296 7383
Sydney, Australia, October 13, 1998 - OzEmail Limited (NASDAQ: OZEMY, ASX: OZM),
Australia's leading Internet service provider, announced today that it has been
contracted to supply Internet network services for a major American Internet
service provider who has recently entered the Australian market.
"OzEmail is proud to be chosen to supply telehousing facilities and backbone
services across the country," said OzEmail Chief Executive Officer, Sean Howard.
"We believe we were chosen because we have shown over the last four years that
we have the capacity to grow with the Internet and have developed a scalable and
reliable network architecture which will support the standard of service
demanded by Internet consumers today," said Mr Howard.
"This contract represents the 51st ISP that has chosen OzEmail to provide their
wholesale network services, though in this case on a much larger scale than our
existing ISP customers," said Mr Howard. "It's a testament to our staff and our
suppliers that we have been chosen by a major competitor to provide their
network services."
About OzEmail
OzEmail is the leading provider of comprehensive Internet services in Australia.
The Company's Internet services are designed to meet the different needs of its
residential and enterprise customers ranging from low cost dial up to high
performance, continuous access services integrating the Company's ISDN offering
and consulting expertise.
Certain statements made herein that are not historical are forward-looking
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements may differ materially from actual future events or results. The
future performance of the Company involves risks and uncertainties that could
cause actual results to differ markedly from those anticipated by such
forward-looking statements. Such risks include but are not limited to the
following: a limited operating history for the Company; potential fluctuations
in operating results; competition; pricing pressure; dependence on third-party
suppliers of hardware and software; shortage of modems; dependence on
telecommunications carriers; management of growth; limited market; a need for
and risks of international expansion; the existence of a new and uncertain
market; customer retention issues; rapid technological change; security risks;
the risk of system failure; formal licensing and joint marketing agreements;
patents and proprietary rights; infringement claims; changes in government
regulation; risks associated with providing content including potential
liability; dependence on key personnel and need to hire additional qualified
personnel; uncertainty of currency exchange rates; need for additional capital;
enforceability of civil liabilities; antitakeover impact of Australian foreign
investment restrictions; control of the Company by the Board of Directors; and
possible volatility of ADS price. For a more complete description of certain of
such risks and uncertainties, we refer you to the documents that the Company has
filed from time to time with the Securities and Exchange Commission ("SEC")
including its registration statement on Form F-1 dated May 28, 1996, its 1997
Form 10-K dated May 15,1998, 1996 Form 10-K dated March 31, 1997, its quarterly
report on Form 6-K dated May 15, 1998, its Amendment No. 1 to Form 10-Q for the
period to September 30, 1997, dated May 21, 1998, its Amendment No. 1 to Form
10-Q for the period to June 30, 1997, dated May 21, 1998,and its Form 10-Qs
dated August 13, 1996, November 14, 1996, and May 8, 1997.
N E W S R E L E A S E
Music Galore at OzEmail with Biggest
CD Catalogue
FOR MORE INFORMATION CONTACT:
Helen Forde - Sydney, Australia - (+61 2) 9433 2400
Sydney, Australia, 15 October, 1998 - OzEmail Limited (NASDAQ: OZEMY), the
leading provider of comprehensive Internet services in Australasia today
unveiled the biggest music catalogue in Australia by adding over 230,000 titles
to its online music store, CMM.
"CMM is the only place to shop for music," said OzEmail President and Chief
Operating Officer, Mr David Spence. "It offers the largest selection of music
titles in this country as well as being open to anyone, anywhere and at
anytime."
Launched in May of this year with a catalogue of 3000 Australian artist-based
CDs, CMM was the first Australian Web site to deliver liquid-audio tracks
enabling secure preview and purchase of CD-quality music while maintaining
copyright protection and artist royalties.
Today, four months later, CMM boasts a bigger and more diverse range of more
than 230,000 titles. Filled with international and local CDs covering over 250
different music genres including classical, bluegrass, country, folk, techno,
acid jazz, dance, comedy, Celtic and go-go, Internet users can choose to
purchase music in either CD, cassette and or vinyl format.
Using a searchable database, Internet users can quickly locate their favourite
artist and CD, ascertain the price and read reviews. Prices are shown in
Australian and US dollars.
CD fulfillment can be expected three days after purchase.
The technology to secure sensitive information such as credit card details is
provided by market leading electronic commerce company Camtech. CamtechAEs
Merchant Server software, hosted at OzEmail, allows Internet users to securely
send their credit card information directly to National Australia Bank for
processing.
"Get all your favourite music at the best possible price with CMM. The expanded
catalogue brings popular artists like Madonna, U2 and David Bowie to your
doorstep," said Mr Spence. "I'm proud that as Australia's largest Internet
service provider, OzEmail and CMM can offer all Internet users the most
comprehensive range of music. And itAEs only a click away."
"Shopping today is about choice, price and convenience. Together, CMM and the
Web give you all three," concluded Mr Spence.
CMM is located at http://www.cmm.com.au
About CMM
CMM offers the first comprehensive Internet music delivery tool to the
Australian music industry. CMM provides a new generation of publishing methods,
in either hardcopy or digital format, to local labels and artists.
About OzEmail
OzEmail is the leading provider of comprehensive Internet services in Australia.
The Company's Internet services are designed to meet the different needs of its
residential and enterprise customers ranging from low cost dial up to high
1
<PAGE>
performance, continuous access services integrating the Company's ISDN offering
and consulting expertise.
Certain statements made herein that are not historical are forward-looking
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements may differ materially from actual future events or results. The
future performance of the Company involves risks and uncertainties that could
cause actual results to differ markedly from those anticipated by such
forward-looking statements. Such risks include but are not limited to the
following: a limited operating history for the Company; potential fluctuations
in operating results; competition; pricing pressure; dependence on third-party
suppliers of hardware and software; shortage of modems; dependence on
telecommunications carriers; management of growth; limited market; a need for
and risks of international expansion; the existence of a new and uncertain
market; customer retention issues; rapid technological change; security risks;
the risk of system failure; formal licensing and joint marketing agreements;
patents and proprietary rights; infringement claims; changes in government
regulation; risks associated with providing content including potential
liability; dependence on key personnel and need to hire additional qualified
personnel; uncertainty of currency exchange rates; need for additional capital;
enforceability of civil liabilities; antitakeover impact of Australian foreign
investment restrictions; control of the Company by the Board of Directors; and
possible volatility of ADS price. For a more complete description of certain of
such risks and uncertainties, we refer you to the documents that the Company has
filed from time to time with the Securities and Exchange Commission ("SEC")
including its registration statements on Form F-1 dated August 26, 1998, August
25, 1998 and May 28, 1996, its 1997 Form 10-K dated May 15,1998, 1996 Form 10-K
dated March 31, 1997, its quarterly reports on Form 6-K dated August 14, 1998,
and May 15, 1998, its Amendment No. 1 to Form 10-Q for the period to September
30, 1997, dated May 21, 1998, its Amendment No. 1 to Form 10-Q for the period to
June 30, 1997, dated May 21, 1998,and its Form 10-Qs dated August 13, 1996,
November 14, 1996, and May 8, 1997.
2
N E W S R E L E A S E
OzEmail Teams with Seinfeld, Kevin Costner and Other Celebrities in
Fight Against Breast Cancer
FOR MORE INFORMATION CONTACT:
Helen Forde - Sydney, Australia - (+61 2) 9433 2461, 0411 530 461
Sydney, Australia, 21 October, 1998 - OzEmail Limited (NASDAQ: OZEMY), the
leading provider of comprehensive Internet services in Australasia, today
appealed to the Web community to join the fight against breast cancer by
participating in the first online Pink Ribbon Auction of Signature Bears signed
by international entertainment and sporting stars.
"As a global real-time medium, the Web represents a powerful vehicle for
organisations like the Sydney Breast Cancer Institute to raise awareness and
find support for their cause," said OzEmail President and Chief Operating
Officer, David Spence. "As Australia's largest Internet service provider, we are
only too delighted to be able to assist the Institute in making use of the Net
to their best advantage."
Working with the Sydney Breast Cancer Foundation, the fundraising arm of the
Sydney Breast Cancer Institute, OzEmail hopes that the online auction will help
bring the Institute closer to delivering breakthroughs in breast cancer
research, screening, diagnosis and continual developments in treatment.
Statistics show that 1 in 11 women will be affected by breast cancer, which
remains the most common cancer diagnosed in women in New South Wales and is the
leading cause of death among women aged 25-40 years in Australia.
The 1998 Pink Ribbon Signature Bear Auction Web site opened today and is located
at
www.pinkribbonball.ozemail.com.au Internet users interested in placing a bid,
must visit the Web site and fill in their contact details and their bid amount.
The highest bid will be posted twice a day. The successful bidder will be
contacted after the auction closes on Thursday 29 October at 5pm AEST.
The 8 Signature Bears to be auctioned online include:-
The Jerry Seinfeld Bear
The Star bear which has been signed by a host of international stars including
Jack Nicholson, Kevin Costner, Antonio Banderas, Billy Joel and Bono and The
Edge from U2
The Swimming Bear, signed at the 1998 Qantas Skins swimming meet by Australian
swimming heroes from the Commonwealth Games including Kieran Perkins, Daniel
Kowolski, Grant Hackett, Samantha Riley, Michael Klim as well as Olympic heroes
from the past, Herb Elliot and Dawn Fraser
1
<PAGE>
The Cold Chisel Bear
The Tennis Bear, signed by 16 of the world's tennis stars including Patrick
Rafter, Todd Woodbridge, Lleyton Hewitt, Venus and Serena Williams, and Arantxa
Sanchez-Vicario.
The Wallabies Bears, signed by all living ex-captains of the Wallabies including
Phil Kearns, Mark Ella, Symon Poidevin and many more
The Home and Away Bear, signed by Pink Ribbon Ball speaker and former breast
cancer sufferer Belinda Emmett and the entire cast of Home and Away
The Kylie Minogue Bear
"I strongly encourage all Internet users and signature collectors to band
together and offer a lending hand to help Australian women beat breast cancer,"
said Mr Spence. "With the high calibre of celebrity support already, I've no
doubt that the Institute are one step closer to winning the fight against this
disease."
About OzEmail
OzEmail is the leading provider of comprehensive Internet services in Australia.
The Company's Internet services are designed to meet the different needs of its
residential and enterprise customers ranging from low cost dial up to high
performance, continuous access services integrating the Company's ISDN offering
and consulting expertise.
Certain statements made herein that are not historical are forward-looking
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements may differ materially from actual future events or results. The
future performance of the Company involves risks and uncertainties that could
cause actual results to differ markedly from those anticipated by such
forward-looking statements. Such risks include but are not limited to the
following: a limited operating history for the Company; potential fluctuations
in operating results; competition; pricing pressure; dependence on third-party
suppliers of hardware and software; shortage of modems; dependence on
telecommunications carriers; management of growth; limited market; a need for
and risks of international expansion; the existence of a new and uncertain
market; customer retention issues; rapid technological change; security risks;
the risk of system failure; formal licensing and joint marketing agreements;
patents and proprietary rights; infringement claims; changes in government
regulation; risks associated with providing content including potential
liability; dependence on key personnel and need to hire additional qualified
personnel; uncertainty of currency exchange rates; need for additional capital;
enforceability of civil liabilities; antitakeover impact of Australian foreign
investment restrictions; control of the Company by the Board of Directors; and
possible volatility of ADS price. For a more complete description of certain of
such risks and uncertainties, we refer you to the documents that the Company has
filed from time to time with the Securities and Exchange Commission ("SEC")
including its registration statement on Form F-1 dated May 28, 1996, its 1996
Form 10-K dated March 31, 1997, and its Form 10-Qs dated August 13, 1996,
November 14, 1996, May 8, 1997, August 13, 1997, and November 14, 1997.
2
N E W S R E L E A S E
[GRAPHIC OMITTED]
OZEMAIL REPORTS THIRD QUARTER RESULTS
FOR
MORE INFORMATION CONTACT:
Sean Howard, Michael Ward - Sydney, Australia - (+61 2) 9433 2400
Todd Friedman - San Francisco - (415) 296-7383
SYDNEY, AUSTRALIA, NOVEMBER 6, 1998. - OzEmail Limited (Nasdaq: OZEMY), the
leading provider of comprehensive Internet services in Australasia, today
released its results for the third quarter ended September 30, 1998.
Revenues for the third quarter of 1998 were A$29,210,000 (US$17,400,000), an
increase of 98.3% over 1997 third quarter revenues of A$14,728,000
(US$10,520,000). The record revenues in the quarter, representing the 15th
straight quarter of sequential revenue growth, were primarily attributable to
increased dial-up and permanent connections from OzEmail's Australian Internet
connectivity business and the acquisitions of Access One, Camtech and PowerUp
Internet services over the last year. The operating loss for the quarter of
A$3,517,000, compared to an operating loss of A$805,000 in the 1997 third
quarter, was primarily due to costs associated with the further development of
the Company's Interline Internet telephony business and expenses related to the
acquisition of Access One. The net loss for the quarter was A$3,677,000, or
A$0.30 per American Depositary Share ("ADS") (US$2,190,000 or US$0.176 per ADS)
compared to a net loss for the third quarter of 1997 of A$398,000 or A$0.04 per
ADS (US$284,000 or US$0.03 per ADS).
"We continue to lead the Australian market in subscribers, services and
innovation," said Sean Howard, Chief Executive Officer of OzEmail. "Our market
has seen dramatic change in the past year with the effects of deregulation of
the telecommunications industry being felt and the entry of new players into our
market. Through it all, we have maintained our position as number one in the
minds of Australians as they log onto the Internet each day."
For the nine months ended September 30, 1998, total net revenues grew by 103% to
A$78,644,000 from A$38,557,000 in the nine months ended September 30, 1997. The
net loss for the nine months to September 30, 1998 was A$11,210,000 compared
with a net loss of A$9,003,000 in the comparable 1997 period.
Operating highlights from the third quarter of 1998 include:
o The Company's active customer base increased 95% over the 1997
third quarter to approximately 247,700.
o Positive earnings before interest, taxation, depreciation and amortization
(EBITDA) of A$1,208,000 in the third quarter resulting in a year to date
EBITDA of A$2,430,000.
OzEmail Limited (ACN 066 387 157),OzEmail House, 39 Herbert Street,
St Leonards NSW 2065, Australia
Telephone: (+ 61 2) 9433 2400 Facsimile: (+ 61 2) 9906 4155
<PAGE>
News Release November 6, 1998
OzEmail Reports Third Quarter 1998 Results
- --------------------------------------------------------------------------------
o The number of affiliates in the Interline VoIP consortium reached 15 and
new operations started in the following countries: France, The United
Kingdom, Ireland and Norway. In September the Interline network managed 1.9
million minutes of Internet voice traffic.
o OzEmail signed an additional infrastructure contract with Southern Cross
Cable Consortium to assist in lowering communications costs into the next
century.
o The Company continued the rationalization of its infrastructure
contributing to lower communications costs per subscriber.
"During the quarter, OzEmail continued to aggressively defend its market share,"
said Mr. Howard. "Our flat rate pricing plan has opened the door to the Internet
for new users across the country and it remains the only national flat rate
pricing plan on offer. The agreements we signed to acquire dedicated cable
capacity linking Australia, New Zealand and the United States will significantly
reduce our Internet traffic costs once the cable is available for service,
currently scheduled for late next year."
OzEmail's Internet telephony business -
Interline - today announced that it has added Teltran as an affiliate in New
York. Interline also announced it signed a multi-year refile agreement with
Teltran and established a new refile hub in Los Angeles, California with two new
refile providers, Pacific Gateway Exchange Inc. (Nasdaq:
PGEX) and Telecom New Zealand (TNZ).
Mr. Jean-Baptiste Rousselot, Chief Executive Officer of Interline, commented,
"We have been expanding our affiliate consortium which now includes 15 members
around the world. While our development efforts continue in full swing, we are
looking forward to working with our partners as they begin delivering full
international Internet long distance service in the coming quarters."
Other highlights in the quarter included:
o The release of MyMail, a web-based email service available from
anywhere on the Internet;
o The release of SouthernX - an Australian
and New Zealand email address directory;
o Chaos Music Market, an
on-line music service supported by OzEmail, announced an additional 230,000
titles from all major catalogues would be available online, enabling secure
preview and purchase of music from around the world;
o itravel, a
Web-based travel service, which enables Internet users to research, plan,
book and pay for all their travel arrangements online was launched in
August;and
o Apple Computer Australia chose the Company as the only
pre-installed Internet service provider for the Australian release of iMac.
OzEmail Limited (ACN 066 387 157),OzEmail House, 39 Herbert Street,
St Leonards NSW 2065, Australia
Telephone: (+ 61 2) 9433 2400 Facsimile: (+ 61 2) 9906 4155
<PAGE>
News Release November 6, 1998
OzEmail Reports Third Quarter 1998 Results
- --------------------------------------------------------------------------------
In this news release, references to "US$" are to United States dollars and
references to "A$" are to Australian dollars. Amounts for quarterly results and
full year results are translated into US$ for convenience at the exchange rate
prevailing at the end of each quarter and at the end of each full year,
respectively. The exchange rates between the U.S. dollar and the Australian
dollar were $0.7143, $0.6500 and $0.5957 (expressed in U.S. dollar / Australian
dollars) at September 30, 1997, December 31, 1997 and September 30, 1998,
respectively.
ABOUT OZEMAIL
OzEmail is the leading provider of comprehensive Internet services in Australia.
The Company's Internet services are designed to meet the different needs of its
residential and enterprise customers ranging from low cost dial up to high
performance, continuous access services integrating the Company's ISDN offering
and consulting expertise. OzEmail's Internet telephony business - Interline - is
a partnership between OzEmail Ltd (88%) and Ideata Pty Ltd (12%), an Australian
manufacturer of telecommunications equipment. Interline has developed and is
operating technology that allows the placement, routing and billing of high
quality voice services over the internet, using existing tone dial phones.
Certain statements made herein that are not historical are forward-looking
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements may differ materially from actual future events or results. The
future performance of the Company involves risks and uncertainties that could
cause actual results to differ markedly from those anticipated by such
forward-looking statements. Such risks include but are not limited to the
following: a limited operating history for the Company; potential fluctuations
in operating results; competition; pricing pressure; dependence on third-party
suppliers of hardware and software; shortage of modems; dependence on
telecommunications carriers; management of growth; limited market; a need for
and risks of international expansion; the existence of a new and uncertain
market; customer retention issues; rapid technological change; security risks;
the risk of system failure; formal licensing and joint marketing agreements;
patents and proprietary rights; infringement claims; changes in government
regulation; risks associated with providing content including potential
liability; dependence on key personnel and need to hire additional qualified
personnel; uncertainty of currency exchange rates; need for additional capital;
enforceability of civil liabilities; antitakeover impact of Australian foreign
investment restrictions; control of the Company by the Board of Directors; and
possible volatility of ADS price. For a more complete description of certain of
such risks and uncertainties, we refer you to the documents that the Company has
filed from time to time with the Securities and Exchange Commission ("SEC")
including its registration statements on Form F-1 dated August 26, 1998, August
25, 1998 and May 28, 1996, its 1997 Form 10-K dated May 15,1998, 1996 Form 10-K
dated March 31, 1997, its quarterly reports on Form 6-K dated August 14, 1998,
and May 15, 1998, its Amendment No. 1 to Form 10-Q for the period to September
30, 1997, dated May 21, 1998, its Amendment No. 1 to Form 10-Q for the period to
June 30, 1997, dated May 21, 1998,and its Form 10-Qs dated August 13, 1996,
November 14, 1996, and May 8, 1997.
OzEmail Limited (ACN 066 387 157),OzEmail House, 39 Herbert Street,
St Leonards NSW 2065, Australia
Telephone: (+ 61 2) 9433 2400 Facsimile: (+ 61 2) 9906 4155
<PAGE>
News Release November 6, 1998
OzEmail Reports Third Quarter 1998 Results
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
DECEMBER 31, SEPTEMBER 30,
ASSETS 1997 1998
============ =============
<S> <C> <C>
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS A$ 51,614 A$14,732
RESTRICTED TERM DEPOSITS - 2,797
ACCOUNTS RECEIVABLE - TRADE, NET OF ALLOWANCES
OF A$889 AND A$3,524, RESPECTIVELY 8,427 15,653
OTHER RECEIVABLES 2,363 21
CURRENT INVESTMENTS - 305
INCOME TAX RECEIVABLE - 1,679
OTHER CURRENT ASSETS 2,520 1,884
------------ -------------
TOTAL CURRENT ASSETS 64,924 37,071
PLANT AND EQUIPMENT, NET 27,179 31,255
NON-CURRENT INVESTMENTS 1,559 535
GOODWILL AND OTHER INTANGIBLES 19,839 23,484
NON-CURRENT RESTRICTED TERM DEPOSITS - 4,230
NET DEFERRED TAX ASSETS 285 1,717
Other non-current assets - 3,559
------------ -------------
TOTAL ASSETS A$ 113,786 A$101,851
============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE A$ 19,936 A$22,010
DEFERRED CONSIDERATION 4,407 -
CURRENT PORTION OF FINANCING - LEASE LIABILITY 3,836 4,393
SHORT TERM LOAN - DUE TO METRO 2,043 -
ACCRUED EXPENSES AND OTHER LIABILITIES 7,513 6,674
DEPOSITS UNDER AGREEMENTS WITH METRO 18,686 -
INCOME TAXES PAYABLE 3,776 -
------------ -------------
TOTAL CURRENT LIABILITIES 60,197 33,077
NON-CURRENT PORTION OF FINANCING - LEASE LIABILITY 4,423 2,198
TOTAL LIABILITIES 64,620 35,275
------------ -------------
MINORITY EQUITY INTEREST - 808
COMMITMENTS AND CONTINGENCIES (NOTE 9) - -
</TABLE>
OzEmail Limited (ACN 066 387 157),OzEmail House, 39 Herbert Street,
St Leonards NSW 2065, Australia
Telephone: (+ 61 2) 9433 2400 Facsimile: (+ 61 2) 9906 4155
<PAGE>
News Release November 6, 1998
OzEmail Reports Third Quarter 1998 Results
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
DECEMBER 31, SEPTEMBER 30,
1997 1998
============ =============
<S> <C> <C>
SHAREHOLDERS' EQUITY:
Ordinary Shares, 1,250,000,000 shares authorized;
111,000,010 and 124,819,500 shares issued and
outstanding, respectively 444 499
Additional paid-in capital 64,636 95,257
Accumulated deficit (15,916) (27,126)
Dividends - (2,858)
Other comprehensive income (loss), net 2 (4)
------------ -------------
TOTAL SHAREHOLDERS' EQUITY 49,166 65,768
------------ -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY A$ 113,786 A$ 101,851
============ =============
</TABLE>
OzEmail Limited (ACN 066 387 157),OzEmail House, 39 Herbert Street,
St Leonards NSW 2065, Australia
Telephone: (+ 61 2) 9433 2400 Facsimile: (+ 61 2) 9906 4155
<PAGE>
News Release November 6, 1998
OzEmail Reports Third Quarter 1998 Results
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OZEMAIL LIMITED
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1998 1997 1998
=============== =============== =============== ===============
<S> <C> <C> <C> <C>
Net revenues A$14,728 A$29,210 A$38,557 A$78,644
COSTS AND EXPENSES:
COST OF REVENUES - NETWORK OPERATIONS AND
SUPPORT 3,967 7,350 10,976 19,890
COST OF REVENUES - COMMUNICATIONS AND
OTHER 4,440 11,363 12,490 30,615
SALES AND MARKETING 3,845 5,959 9,617 16,432
PRODUCT DEVELOPMENT 1,852 1,875 6,945 5,128
GENERAL AND ADMINISTRATIVE 1,429 4,898 6,373 14,875
AMORTIZATION OF GOODWILL AND OTHER
INTANGIBLES - 1,282 - 3,772
--------------- --------------- --------------- ---------------
TOTAL COSTS AND EXPENSES 15,533 32,727 46,401 90,712
--------------- --------------- --------------- ---------------
LOSS FROM OPERATIONS (805) (3,517) (7,844) (12,068)
OTHER INCOME (EXPENSE):
FOREIGN EXCHANGE GAIN (LOSS),
NET (116) 62 (112) 297
INTEREST INCOME 859 239 2,354 1,025
OTHER INCOME (EXPENSE), NET 59 (508) 612 (283)
INTEREST EXPENSE (96) (135) (219) (464)
--------------- --------------- --------------- ---------------
LOSS BEFORE PROVISION FOR INCOME TAXES AND
MINORITY EQUITY INTEREST (99) (3,859) (5,209) (11,493)
INCOME TAX (EXPENSE) BENEFIT (299) 169 (3,794) 270
MINORITY EQUITY INTEREST - 13 - 13
--------------- --------------- --------------- ---------------
NET LOSS A$(398) A$(3,677) A$(9,003) A$(11,210)
BASIC LOSS PER ORDINARY SHARE A$ (0.004) A$(0.030) A$ (0.087) A$(0.093)
=============== =============== =============== ===============
DILUTED LOSS PER ORDINARY SHARE A$ (0.004) A$(0.030) A$ (0.087) A$(0.093)
=============== =============== =============== ===============
WEIGHTED AVERAGE ORDINARY SHARES AND SHARE
EQUIVALENTS
- - BASIC 103,663 124,509 103,555 120,497
- - DILUTED 103,663 124,509 103,555 120,497
=============== =============== =============== ===============
BASIC LOSS PER ADS A$ (0.042) A$(0.295) A$ (0.870) A$ (0.930)
=============== =============== =============== ===============
DILUTED LOSS PER ADS A$ (0.042) A$(0.295) A$ (0.870) A$ (0.930)
BASIC LOSS PER ADS US$ (0.030) US$(0.176) US$ (0.593) US$ (0.554)
--------------- --------------- --------------- ---------------
DILUTED LOSS PER ADS US$ (0.030) US$(0.176) US$ (0.593) US$ (0.554)
--------------- --------------- --------------- ---------------
</TABLE>
OzEmail Limited (ACN 066 387 157),OzEmail House, 39 Herbert Street,
St Leonards NSW 2065, Australia
Telephone: (+ 61 2) 9433 2400 Facsimile: (+ 61 2) 9906 4155
