Streaming Channel Revenues up 85% Year-Over-Year
Ad-supported Streaming Channel Revenues up 150% Year over Year
LOS ANGELES, CA / ACCESSWIRE / February 22, 2021 / Cinedigm Corp. (NASDAQ:CIDM) today announced its financial results for the three-month period ended December 31, 2020.
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Consolidated revenues were $10.0 million, with streaming channel revenues up 85% versus prior year quarter
Ad-supported streaming channel revenues increased 79% sequentially over the prior quarter and 150% over the prior year quarter.
Streaming digital content licensing and sales increased 34% year-over-year, driven by partners such as Amazon
Combined OTT Streaming and Digital revenues increased 58% versus prior year quarter and 36% sequentially over the prior quarter
Core Business (Base Distribution and OTT Streaming and Digital excluding corporate) Adjusted EBITDA for the three-month period ending December 31, 2020 increased $1.8 million to $1.3 million or 376% versus the three-month period ending December 31, 2019 and increased by $4.7 million or 138% versus the nine-month period ending December 31, 2019
Total debt was reduced by $25.7 million, or 51%, versus prior year, including conversion of $15 million of convertible notes to equity at $1.50 per share
Key Business Highlights During Third Quarter Fiscal 2021 (Quarter ended December 31, 2020)
Total streaming minutes in the quarter were 907 million, a new company record, and up 391% versus the prior year quarter
Total monthly ad-supported streaming channel viewers rose to 22.6 million, up 303% over the prior year quarter
Acquired The Film Detective, a leading streaming content company for classic film and television programming. The acquisition adds The Film Detective's library, comprised of 3,000 content titles, an estimated 10,000 individual film and TV episodes and two streaming networks (The Film Detective and Lonestar channels) to Cinedigm's expansive portfolio of streaming channels and content
Launched the popular The Bob Ross Channel on Viacom's streaming television service, Pluto TV
Expanded streaming channel portfolio to 25 channels either launched or under contract versus nine channels a year ago
Key Business Highlights Subsequent to Quarter End:
Acquired Fandor®, the leading global independent film subscription streaming service with the largest collection of independent films, documentaries, and international features in the market and called "The Netflix for Indie Film" by The Wall Street Journal and "A streaming rabbit hole worth falling down" by The New York Times
Acquired Screambox®, a popular enthusiast streaming service targeting the highly lucrative horror genre, called "The Perfect Horror Streaming Alternative to Netflix" by Tech Times and named one of the best Streaming Services for 2021 by PC Mag
Business Development & Distribution:
Combined organic and acquisition growth increased total Cinedigm Streaming channel active subscribers to approx. 245,000, up 216% over the trailing twelve months
Launched three of the Company's streaming channels, The Bob Ross Channel, CONtv Anime and MyTime Movie Network, on VIZIO SmartCast, the award-winning Smart TV platform available to millions of viewers. VIZIO, Inc., is the #1 American-based TV brand1 and the #1 Sound Bar brand in America
Launched SO… REAL, a non-fiction streaming service from Liberty Global & Discovery's All3Media joint venture, on the Roku® platform
Partnered with TCL, one of the world's best-selling electronics brands, to include all of its streaming channels in TCL's launch of a linear service on select TVs in North America
Chose Team Whistle, a global media and entertainment company that includes Whistle, Tiny Horse, New Form and Vertical Networks, as Agency of Record and exclusive direct ad sales agent for Cinedigm's portfolio of ad-supported OTT networks
Launched The Bob Ross Channel, Dove Channel, FashionBox, and Whistle TV on Rockbot, the Google and Universal Music Group-backed out-of-home media streaming service with 20 million monthly viewers
Completed the sale of 5,600,000 shares of its Class A common stock at a purchase price of $1.25 per share in a registered direct offering to a single institutional investor
Eliminated all of the Company's remaining second lien notes in exchange for common equity and cash, reducing remaining recourse debt to a less than $3 million balance on the low interest revolving credit facility with East West Bank
"Cinedigm had an extremely strong fiscal third quarter financially and every key streaming growth metric increased substantially, creating great momentum as we entered calendar year 2021 in tremendous shape," said Chris McGurk, Cinedigm's Chairman and CEO. "Our streaming business, where we are laser- focused on building out a portfolio of targeted enthusiast channels, is growing rapidly both organically and through our streaming roll-up acquisition strategy, which has delivered three key, accretive streaming assets in just the last three months in The Film Detective, Fandor and Screambox. We have significantly reduced our debt and have substantial cash reserves, which gives us the firepower to continue to rapidly execute this strategy in the face of limited competition because of our expansive global distribution footprint, huge library of digital content, infrastructure and market leading Matchpoint streaming technology. We are also pleased to have again registered positive and growing adjusted EBITDA in our core business at the same time as we are rapidly expanding the streaming business and investing behind that growth."
Gary Loffredo, Chief Operating Officer and General Counsel, added, "Our efforts over the past year to reduce our debt and interest expense have resulted in a strong balance sheet and cash position that will enable Cinedigm to continue the growth of our core business and to execute on our roll-up acquisition strategy. We eliminated all of our convertible notes and all of our Second Lien debt. We have a strong cash position that will enable Cinedigm to take advantage of future accretive acquisitions. We achieved that reduction in debt while simultaneously growing our core business EBITDA and investing behind our rapidly growing streaming business."
"As demonstrated by the fantastic organic growth results we have achieved this year, our platform and technology give Cinedigm a clear competitive advantage in launching, operating and scaling streaming services profitably and efficiently," said Erick Opeka, Chief Strategy Officer and President of Cinedigm Networks. "As the studios and tech giants spend tens of billions of dollars to compete for general entertainment audiences with Netflix, they are clearly ignoring large enthusiast verticals. At the same time, tens of millions of consumers around the globe are shifting their entertainment spend from cable to streaming. Amidst this perfect storm, we have a clear opportunity to leverage our unique platform and market position to build and acquire a compelling portfolio of enthusiast services catering to tens of millions of passionate fans. It is the perfect strategy at the ideal moment in history."
Fiscal Third Quarter Financial Summary (comparing the three months ended December 31, 2020 to the three months ended December 31, 2019)
Revenue was $10.0 million, a decrease of 13.5% compared to $11.5 million in the prior year period, due to the expected decline in the legacy Cinema Equipment business and the negative impact of COVID-19 on theatrical revenues and temporary DVD warehousing and distribution center shutdowns due to COVID-19. This was partially offset by growth in streaming revenues. Advertising-based channel revenues increased 150% versus last year and 79% versus the prior quarter ending September 30, 2020.
The Company reported a consolidated net loss of $9.7 million for the third quarter of fiscal year 2021. Excluding the unrealized change in fair value of our equity investment in Starrise Media Holdings Limited, the operating net loss was $2.9 million, or $.02 per share, driven in large part by the loss of theatrical revenues in the legacy Cinema Equipment business due to COVID-19.
For the third quarter of fiscal year 2021, consolidated adjusted EBITDA was $0.9 million, compared to $2.7 million in the prior quarter period. This decrease was primarily due to the expected decline of our legacy Cinema Equipment business and the negative impact of COVID-19 on theatrical revenues and temporary DVD warehousing and distribution center shutdowns due to the impact of COVID-19.
As of December 31, 2020, the Company had cash and cash equivalents of $26.2 million compared to $14.3 million as of March 31, 2020, the end of our last fiscal year.
Total debt was reduced by $25.7 million, or 51%, versus December 31, 2019, compared to March 31, 2020 total debt was reduced by $23.7 million or 48.3%.
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Cinedigm Corp.’s shares dropped 10.5% in Monday’s extended trading session after the streaming content provider announced a larger-than-expected loss in the third quarter, while sales were dented due to the negative impact of its legacy cinema business.
Cinedigm (CIDM) posted a net loss per share of $0.07 during the third quarter, which was larger than analysts’ expectations of a net loss per share of $0.03.
Revenue fell 13.5% year-on-year to $9.95 million missing analysts’ estimates of $10.57 million. The revenue drop was attributable to a decline in the company’s legacy cinema equipment business, the impact of the pandemic on theatrical sales and the temporary shutdowns of DVD warehousing.
This decrease was partially offset by higher streaming revenue. Cinedigm’s advertising-based channel sales increased 150% year-on-year in 3Q.
Cinedigm’s Chief Strategy Officer Erik Opeka said, “As demonstrated by the fantastic organic growth results we have achieved this year, our platform and technology give Cinedigm a clear competitive advantage in launching, operating and scaling streaming services profitable and efficiently.” (See Cinedigm stock analysis on TipRanks)
Last month Benchmark Co. analyst Daniel Kumos reiterated a Buy rating on the stock with a price target of $3.50 (83% upside potential). Kumos noted, “Cinedigm has put themselves squarely on the map as a growing player of scale.”
The rest of the Street has a Moderate Buy consensus rating on the stock based on 2 Buys. The average analyst price target of $3.25 implies about 70.2% upside from current levels. That’s after the stock exploded 267% over the past year.
Cinedigm (NASDAQ:CIDM) stock is soaring higher on Wednesday as investors speculate that the media company could become an NFT play.
NFTs stands for non-fungible tokens and they’re a form of cryptocurrency token used by people to buy and sell art online. The tokens are unique and have the support of blockchain, allowing for them to not be duplicated. They can be used to represent both digital and real-world art.
Investors have been itching to get their hands on NFT stock as interest in the market heats up. As a result, any company with even the slightest possible connection to NFTs is seeing shares surge as investors pile in hoping for profits.
So how does CIDM stock play into all of this? It’s a bit complicated but bear with me. Wizard Brands (OTCMKTS:WIZD) division Wizard World has announced the launch of Signature Series to create NFTs. The company also owns a minority stake in CONtv, an OTT service covering Comic-Con. That’s where Cinedigm comes in as it operates the service alongside Wizard World.
It takes a bit to get there, but the idea that Cinedigm could become an NFT stock isn’t too outlandish. However, that doesn’t mean investors should just dive in without knowing more about it. Luckily, we have a breakdown of the company at this link.
CIDM stock was seeing heavy trading today on the NFT talk. As of this writing, more than 44 million shares of the stock have changed hands. To put that in perspective, the company’s daily average trading volume is closer to 19 million shares.
CIDM stock was up 36.4% as of Wednesday morning and is up 209.7% since the start of the year.
Cinedigm joins a growing list of companies with stock prices swelling on NFT news.