Cinedigm swung to a profit in its fiscal third quarter compared to a loss a year ago, as revenues grew for the company’s ad-supported streaming channels and its subscription business.
"Our strong momentum continued in the fiscal third quarter with our business firing on all cylinders as we close in on our goal of sustainable profitability and positive cash flow,” CEO Chris McGurk said.
Third-quarter net income was $4.9 million, or 3 cents a share, compared to a $474,000 loss a year ago.
Revenues jumped to $27.9 million. nearly double the $14.1 million that was recorded a year ago.
The company said revenue from its ad-supported streaming business was up 79%. Revenue for its subscription business was up 38%. The company also said it has a goal of reducing annual operating costs by $7.5 million by the end of this fiscal year.
“This past quarter was a significant one for our streaming efforts,” president and chief strategy officer Erick Opeka said. “Following the successful launch in September of Cineverse, our flagship streaming platform, we have relaunched Screambox, Fandor and Dove Channel on our next-generation streaming platform Matchpoint. This has enabled us to scale and support record subscriber growth in the quarter.
"Our omnichannel approach to advertising across web, mobile, AVOD, FAST, audio and social drove heavy demand from advertisers during the quarter,” Opeka continued. “In planning for even greater growth in fiscal 2023, we expanded our advertising and business development teams with four significant senior hires who are already driving new revenues and growth."
Cinedigm reiterated its long-term goal of increasing annual streaming revenue by 50% over the next two to four years. ■
