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Yangaroo (TSXV:YOO) , a leading secure digital media management distribution company announced its results for the second quarter ended June 30, 2018. The company reported revenues of C$1.7 million which is 11 percent lower than the same period in 2017 and 8 percent down sequentially. As quoted in the press release: Revenue for Q2 was …
Yangaroo (TSXV:YOO) , a leading secure digital media management distribution company announced its results for the second quarter ended June 30, 2018.
The company reported revenues of C$1.7 million which is 11 percent lower than the same period in 2017 and 8 percent down sequentially.
As quoted in the press release:
Revenue for Q2 was $1,797,924, 11% lower than the same period in 2017 and 8% lower than Q1 2018, with net loss of $18,828 and normalized EBITDA of $48,365. Revenue for the first half of 2018 was $3,747,014, 1% lower than the first half of 2017 with net income of $66,143 and normalized EBITDA of $227,931.
Advertising revenue of $1,025,092 in Q2 has dropped 16% over the same period in 2017 and dropped 17% over the previous quarter. The year-to-date revenue for the first 2 quarters was $2,254,547, which remained flat compared to the same 2 quarters in 2017. The decrease in Q2 was mainly due to inconsistent timing of campaign spending by a major client, as evidenced by higher revenues from the client in the previous quarter.
Entertainment Division’s Q2 revenue was $772,832, down 4% over 2017 and up 7% over the previous quarter. The revenue of the first half of 2018 was $1,492,467, 2% lower than the same period in 2017. The change in revenue recognition standards in 2018 resulted in lower awards management revenue in the current quarter compared to last year, but is a timing change only. However, the increase in volume of music deliveries in the current quarter brought a positive change compared to previous quarter. The drop of revenue for the first half of 2018 was mainly a result of the general decline in the volume of subscription and music video deliveries.
“The flat revenue year to date, both consolidated and in the Advertising Division, does not yet reflect the business development efforts outlined last quarter,” said Gary Moss, President and CEO of YANGAROO. “YANGAROO continues to develop its Advertising Division sales force and opportunity pipeline. The Company recently added ad sales representatives in the Los Angeles and Miami markets and they are already contributing to sales opportunities. The Advertising Division pipeline continues to grow and mature and the first significant new customers are completing their testing and onboarding processes. The Company expects new customer business to start making a contribution to revenue in the latter part of 2018. Until revenue growth accelerates, the Company will continue to carefully control costs.”
Total operating expense was $1,846,239 for the quarter ended June 30, 2018, 3% higher than the previous year and 3% lower than the previous quarter. The year-to-date operating expenses was $3,747,336, 8% higher than the same period in 2017. The increases for both the current quarter and the year-to-date were primarily due to higher value of stock options granted, salary adjustments and bonus accrual. The decrease over previous quarter was a result of lower stock option expenses in the current quarter. The Company has incurred a net loss of $18,828 in the current quarter, compared to a net income of $171,597 in the same quarter of last year; and retained a net income of $66,143 in the first half of 2018, compared to $204,446 in the same period of last year. Excluding the impact of non-cash and non-operating costs, the second quarter of 2018 had positive normalized EBITDA of $48,365 and $227,931 for the first half of 2018.