Cinedigm Announces Fourth Quarter and Full Year Fiscal 2018 Financial Results

Cinedigm (NASDAQ:CIDM), a company that curates custom content solutions to the world’s largest retail, media and technology companies announced financial results for the fourth quarter and full year fiscal 2018.

The company’s full fiscal year total OTT revenue increased 23 percent driven mainly by OTT channel revenue that increased 36 percent.

As quoted in the press release:

Financial Highlights for Fourth Quarter 2018:

• Consolidated revenues were $17.7 million
• Content and Entertainment revenues were $8.4 million
• Consolidated Adjusted EBITDA was $6.3 million

Financial Highlights for Full Year 2018:

• Consolidated revenues for the year were $67.7 million
• Content and entertainment revenues for the year were $30.1 million
• Consolidated Adjusted EBITDA was $23.0 million

Key Financial and Operating Results

• Total OTT revenues were $11.5 million, an increase of 23% for the full fiscal year ended March 31, 2018, driven mainly by OTT channel revenues, which increased 36% (1)
• Cinedigm’s three owned branded OTT channel services, CONtv, Docurama and Dove Channel, continue to expand including new linear formats. Subsequent to quarter end, the Company entered into an agreement with documentary specialist and distributor Cargo Film and Releasing to expand the Docurama channel via programming and marketing support.
• During the year or subsequent to quarter end, the Company launched and/or announced six additional OTT channels: Third party financed or partnership channels include HallyPop (Korean Pop Music), WHAM! (E-Sports), Gatherer (Millennial and GenX women), CombatGo (Mixed Martial Arts) and a yet-to-be named Chinese content channel. We also launched a branded linear channel for Cinedigm’s three owned and operated OTT channel services.

“Fiscal 2018 was an extremely productive and transformative year for our company and we are very pleased with our financial results for the year and fourth quarter, particularly our fast-growing OTT revenues,” said Chris McGurk, Cinedigm Chairman and CEO. “Through a series of strategic alliances, high-caliber partnerships and financing transactions we continued to significantly transform our business model to capitalize on the enormous market opportunities in the global streaming OTT business. The strong presence we have established in China, working closely with our majority investor, Bison Capital, high level regulators and new strategic partners, enables us to be a key provider of bilateral programming and OTT channels between the U.S. and China. In addition, the positive response to our business progress and significant media coverage in China has given us increased confidence of sustainable success. Overall, we continue on a rapid path to become an even more important provider of content, networks, services and technology to the global OTT streaming business, the largest and fastest segment of the entertainment business, with particular strength in the 2 biggest entertainment and OTT markets in the world, North America and China.”

Jeffrey Edell, Chief Financial Officer of Cinedigm added, “Backed by a much stronger balance sheet and growth capital from the Bison transaction, we are also making good progress towards adding faster growing, higher margin digital revenues from four distinct OTT revenue streams: subscription fees, advertising and sponsorships, digital content distribution fees and management, operational and technology service fees. Going forward, we plan to leverage our expanded portfolio of channels and enormous device reach, where we added access to more than 200 million new mobile phones, smart televisions and other connected devices during the year, an increase of 91%, to further drive high margin revenue and EBITDA growth. We have an extremely robust deal pipeline that should further expand our OTT channel portfolio and device reach, leading to significant additional revenue streams as will all of the partnerships we have been signing with major Chinese media partners. Our vastly improved balance sheet results from our debt reduction of $71.8 million during the last fiscal year, which lowered annual interest expense by approximately $4.8 million on a consolidated basis, and a new Revolving credit facility that more than doubled our borrowing capacity on much more favorable financial terms than our prior facility.”

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