New York’s ROO Group (RGRP.OB) reported Q2 results. Revenue jumped 78%, from $2.0 million to $3.6 million, but expenses increased an even faster 87%. Losses more than doubled: from $3.2 million to $7.3 million. The company had $24 million of cash remaining at the end of the quarter, but is burning it fast.
On a positive note, ROO is gradually clarifying its mission. The company now divides its business into two segments: Online Digital Media (which provides web development, site management, and back-end support for video distribution), and Advertising Agency (which provides a wide range of media and communications consulting services).
Online Digital Media revenue grew from $900,000 to $2.2 million, in part because of an acquisition, and is considered the company’s primary business segment. Advertising Agency revenue grew from $1.1 million to $1.3 million, but has been flat for the past six months.
If ROO wishes to emerge from the anonymity of the pink sheets, it needs to sharpen its focus by selling off the Advertising Agency business and clarifying the mission of the Online Digital Media business. The company currently has a $44 million market cap. Its stock trades at $1.