Cinedigm (CIDM) Misses Q2 EPS by 17c, Revenues Beat

Cinedigm (NASDAQ: CIDM) reported Q2 EPS of ($0.23), $0.17 worse than the analyst estimate of ($0.06). Revenue for the quarter came in at $7.2 million versus the consensus estimate of $7.05 million.

Key Financial Results:

• Consolidated revenues were $7.2 million, with OTT Channel streaming up 47% versus prior year quarter
• Transactional Video-On-Demand (TVOD) and Ad-Based Video-On-Demand (AVOD) Digital Sales increased 27% year-over-year, driven by partners such as Amazon, with 78% growth
• Ad-supported streaming revenues increased 44% over first quarter of this fiscal year and 45% over the prior year quarter despite COVID-19 impacts on the overall advertising market
• OTT Streaming & Digital and Content Distribution Adjusted EBITDA for the three month period ending September 30, 2020 increased 3% versus the three month period ending September 30, 2019 and increased by $2.3 million, or 72%, versus the six month period ending September 30, 2019.
• Total Debt reduced by $20.9 million, or 40%, versus prior year, including conversion of $15 million of convertible notes to equity at $1.50 per share

Key Business Highlights During Q2 FY2021 (Quarter ended September 30, 2020)

• Further strengthened balance sheet with common stock issuance on July 20, 2020 for gross proceeds of $10.8 million
• Launched hundreds of movies, TV episodes and three streaming channels on NBCUniversal’s Peacock digital streaming platform
• Announced partnership with Fantawild, China’s largest theme park operator and top producer of children’s animation in Asia, to launch a new global streaming service and distribute Fantawild’s animated content outside of China
• Announced partnership with Bloody Disgusting, the most popular media brand in horror, to launch a new horror streaming network that premiered for the Halloween season
• Announced partnership with TwentyOne14 Media to launch a new, urban multi-cultural entertainment and lifestyle network
• Partnered with Rad (formerly Littlstar) to distribute Cinedigm\'s portfolio of streaming channels. Rad is the leading provider of streaming content to the gaming ecosystem, where it reaches over 110 million Sony PlayStation consoles and hundreds of millions of other streaming devices including Android TVs, mobile devices, and many more
• Cinedigm’s device streaming footprint now approaching 900 million global devices

Key Business Highlights Subsequent to Quarter End:

• Revenues from the Company’s ad-supported streaming channels grew 29% from September to October 2020, setting a new Cinedigm record. Year-over-year, October revenues were up more than 148%, also a record
• Cinedigm Networks paid subscriber count surged 45% to 142,000 in last 6 months
• Flagship streaming channel CONtv subscribers increased 78% since April 1st
• Reached 15.2 million monthly viewers in October for year-over-year growth of 238%
• Cinedigm agreed to acquire The Film Detective, a leading streaming content company for classic film and television programming. The acquisition will add 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 OTT channel portfolio to 25 channels either launched or under contract versus nine channels a year ago.

“We made strong progress in this seasonally slow quarter as streaming revenues continued to accelerate behind additional channel launches, platform/device expansion and enhanced digital sales, particularly TVOD,” said Chris McGurk, Cinedigm’s Chairman and CEO. “With several more channels teed up to launch, a strong recovery in the advertising market and continued demand by all the streaming platforms for digital content, we expect this growth to accelerate into our fiscal third quarter as we drive toward sustained profitability. We are also particularly pleased about The Film Detective acquisition, which will add almost 10,000 titles/episodes and 2 streaming channels to our portfolio of streaming assets. As the streaming business continues to consolidate, we believe Cinedigm is in a unique position to roll-up additional profitable and accretive streaming assets like The Film Detective that can immediately generate significant added revenue growth and profits from our Matchpoint technology, distribution muscle, content and OTT infrastructure.”

Gary Loffredo, Chief Operating Officer and General Counsel, added, “We made great progress this quarter by further strengthening our balance sheet, adding $10.8 million in cash through an equity offering and reducing our debt by another $15 million by converting convertible notes to equity at $1.50 per share. We plan to continue to pursue further opportunities to reduce the remaining debt on our balance sheet over the remainder of this year, reducing interest expense and facilitating our drive to sustained profitability. Based on sales activity to date, we also expect continued strong results next quarter.”

For earnings history and earnings-related data on Cinedigm (CIDM) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Diana Shipping drops bid for Genco after price demands spike to $36.91
• Algorhythm Holdings (RIME) Tops Q2 EPS by 54c