Cinedigm posted a net loss in its fiscal second quarter as it grew its streaming business while winding down its theatrical equipment operations.
The net loss was $5.8 million, or 2 cents a share, compared to a loss of 195,000, or zero cents per share, a year ago. The company said the loss was driven by the reduction of its legacy digital cinema equipment sales business and included a non-operating charge of $600,000 resulting from the acquisition of A Metaverse Co.
Revenues rose 39% to $14 million. Streaming revenue increased 78% to $8 million and ad-supported revenue rose 102%. Subscription revenue was up 38%.
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“Our strong business momentum continues with total streaming revenue increasing 78% in our fiscal second quarter - generating another record revenue quarter for the Company. Our advertising-supported streaming revenues more than doubled versus last year, thanks to our smart pivot into the AVOD and FAST businesses years ago, while other major streaming companies are just now scrambling to put their advertising strategies in place,” said CEO Chris McGurk. "Looking to the months ahead, we see several reasons to be optimistic about our financial prospects.”
"During the past quarter, we made great strides in growing and scaling our business,” added Erick Opeaka, chief strategy officer and president of Cinedigm Networks. “With the wind at our backs and the success of Terrifier 2, the biggest hit film for our streaming business to date, we expect the current quarter to show even greater success." ■
