- \n
- \nBBTV achieved record quarterly revenues of $120.7 Million, a 31% increase in revenues on a YoY basis, driven by growth in Views and improved ad sell through rates\n<\/li>\n
- \nBBTV experienced an 18% increase in Views to 121.2 billion from 102.7 billion in Q3 2019 across various platforms such as YouTube, solidifying its global leadership among media-tech companies\n<\/li>\n
- \nRaised $172.4 million in proceeds from share offering substantially subscribed to by leading financial institutions, enabling acquisition of operating business and cash to execute on growth strategies\n<\/li>\n<\/ul>\n
VANCOUVER, British Columbia–(BUSINESS WIRE<\/a>)–
\nBBTV Holdings Inc. (TSX: BBTV) (the \u201cCompany\u201d), a media tech company that uses technology enabled solutions to help content owners become more successful, today announced the financial results for its operating business BroadbandTV Corp. for the three-month period ended September 30, 2020. All currency is in Canadian dollars unless otherwise noted.\n<\/p>\n\n\u201cWe are very pleased with our performance during Q3, as we executed on our strategy to increase our global scale and experienced strong growth in audience views of our content, accelerated by beneficial secular tailwinds including television viewers \u2018cutting the cord\u2019 to watch digital video on demand,\u201d said Shahrzad Rafati, Chairperson, Founder and CEO of BBTV. \u201cThe global COVID-19 pandemic has accelerated the shift of consumption from mainstream media to digital media, and we are seeing advertisers follow these audiences online as digital advertising rebounded in the third quarter following a temporary slowdown in growth in Q2.\u201d\n<\/p>\n
\n\u201cFollowing the quarter, we successfully completed our IPO and listed on the TSX. We are committed to executing on our growth strategies including investments in our technology, scaling and expanding our higher margin Plus Solutions as well as accretive strategic acquisitions to power our Base and Plus Solutions,\u201d added Rafati. \u201cThe strong growth in digital content consumption such as short form videos means our unique solutions are in more demand than ever, as content owners need our platform expertise to help them increase views and improve revenue generation across the growing number of digital platforms while allowing them to focus on their core competency \u2013 content creation.\u201d\n<\/p>\n
\nIn accordance with its recent initial public offering and acquisition of RTL\u2019s share of the Company, which occurred subsequent to the close of its third quarter September 30, 2020, the Company is providing the results of operations of BroadbandTV Corp. only at this time. BBTV Holdings, is a holding company which acquired the RTL interest, but other than transaction related costs, it does not currently generate revenue, and operating expenses for the quarter are expected to be below $400,000, excluding IPO and RTL transaction related costs. The financial statements for the Company will be filed separately. A pro-forma for the period ended June 30, 2020, which combines the BroadbandTV Corp and BBTV Holdings entity post the transaction is included in the Prospectus. A pro-forma for the period ended Sept 30, 2020 will be filed at a later date.\n<\/p>\n
\nRevenue for the three months ended September 30, 2020 (\u201cQ3 2020\u201d) increased by $28.3 million or 31% as compared to the three months ended September 30, 2019 (\u201cQ3 2019\u201d), primarily driven by our continued focus on acquiring content that is brand-safe with audiences in geographies with high RPMs1<\/sup> or high RPM1<\/sup> growth, as well as corresponding increases across existing Views and RPMs1<\/sup>. Revenue for the nine months ended September 30, 2020 (\u201cYTD 2020\u201d) increased by $43.6 million or 16% as compared to the nine months ended September 30, 2019 (\u201cYTD 2019\u201d), primarily driven by the same factors impacting Q3 2020, partially offset by the negative impact on advertising spend, including digital advertising, in the second quarter of 2020 stemming from the COVID-19 pandemic which has subsequently rebounded.\n<\/p>\n
\nGross profit for Q3 2020 decreased by $0.4 million or 4% compared to Q3 2019. Gross profit for YTD 2020 decreased by $1.5 million or 6% compared to YTD 2019. The lower gross margin was primarily due to content mix, more specifically; 1) less advertising on kids content, 2) the impact of COVID-19 on Plus Solutions from less content being produced, and 3) the previous penetration pricing efforts2<\/sup>. We expect gross margins to improve as some of the temporary effects related with COVID-19 wear off, as we expand our Plus Solutions, gain greater market share, and execute our accretive M&A strategy.\n<\/p>\n
\nAlthough Plus Solutions were more heavily impacted by COVID-19, Plus Solutions revenue increased 27% from July to September during Q3 2020 and Direct Advertising Sales, in particular, is showing signs of recovery growing 55% from July to September. Additionally, we are entering our seasonal high revenue period, Q4. Accordingly, we are optimistic that Plus Solution revenue will return to higher growth in Q4 2020.\n<\/p>\n
\nAdjusted EBITDA for Q3 2020 decreased by $0.8 million compared to Q3 2019. Adjusted EBITDA for YTD 2020 decreased by $4.2 million compared to YTD 2019. The higher loss for the current period was primarily due to the lower margins realized as per above, as well as some additional investments in operating expenses associated with Plus Solution initiatives.\n<\/p>\n
\nNet Loss for Q3 2020 decreased by $0.8 million compared to Q3 2019. The net loss YTD 2020 was $11.5 million.\n<\/p>\n
IPO Update and Financial Position<\/b><\/p>\n
\nOn Oct. 28, 2020, the Company completed its initial public offering, and raised approximately $172.4 million in gross proceeds through the issuance of 10,775,000 subordinate voting shares at $16 per share (the \u201cOffering\u201d), and currently has approximately 20.5 million shares outstanding on pro-forma basis. The Company utilized the net proceeds of the Offering to complete the acquisition of 100% of the issued and outstanding equity of BroadbandTV Corp. The Company intends that the remaining Offering proceeds will be used to pay for expenses related to the Offering, and to fund business operations, strategic acquisitions and growth initiatives. Immediately following completion of the Offering, the Company will have on a consolidated basis, approximately $10 million in cash and cash equivalents, after fees and expenses and $46 million in long term debt in the form of convertible notes.\n<\/p>\n
Webcast and Conference Call Information<\/b><\/p>\n
\nThe Company will hold a conference call today at 1:00 pm EST hosted by Ms. Shahrzad Rafati, Chairperson and CEO, and Mr. Todd Tappin, Chief Financial Officer. Ms. Rafati and Mr. Tappin will review the Q3 results and discuss: 1- The Company\u2019s over-arching growth strategy, 2- The Company\u2019s continued resilience and strong performance during the COVID-19 pandemic and 3- the overall outlook for the business. A question and answer session will follow the corporate update.\n<\/p>\n
\nAll interested parties can join the call by dialing (647) 427-2311 or (866) 521-4909 and referencing BBTV Holdings Third Quarter Earnings Call, conference ID number 4798154. Please dial in 15 minutes prior to the call to secure a line. A live audio webcast of the conference call will also be available at investors.bbtv.com<\/a>. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. A replay will be available shortly after the call for 21 days. To access the replay, please dial (800) 585-8367 or (416) 621-4642 and enter access code 4798154.\n<\/p>\n
Footnotes:<\/b><\/p>\n
\n1- \u201cRPMs<\/b>\u201d or \u201cRevenue per one thousand video Views<\/b>\u201d means the Advertising Revenue for every thousand video Views generated by the Company\u2019s owned and licensed digital content. Advertising types include pre\/mid\/post-roll advertisements that run on the Company\u2019s owned and licensed content across digital platforms. The Company does not provide a reconciliation for RPMs as there are no directly comparable IFRS measures for the components that make up RPMs.\n<\/p>\n
\n2- Penetration pricing strategy means strategy employed to capture market share relating to prior periods for Base Solutions where contracts are one year long.\n<\/p>\n
About BBTV<\/b><\/p>\n
\nBBTV is a media and technology company headquartered in Vancouver, Canada that uses technology enabled solutions to help content owners become more successful. BBTV is an enabling platform with a stated mission of advancing the world through the democratization of content. From individual content creators to global media companies, BBTV monetizes the media of content owners through end-to-end management, distribution and monetization solutions, powered by its innovative VISO Platform, including related proprietary technology, while allowing content owners to focus on their core competency \u2013 content creation. In June 2020, BBTV had the second most unique monthly viewers among digital platforms with 596 million globally, who consumed more than 54 billion minutes of video content, the most among media companies3<\/sup>www.bbtv.com<\/a><\/p>\n
3- Calculations and classifications made by BBTV based on data from Comscore contained in Comscore\u2019s \u201cTop 12 Countries = June 2020 comScore Video Metrix Media Trend – Multi-Platform – Top 100 Video Properties Report\u201d.<\/i><\/p>\n
Forward-Looking Statements<\/b><\/p>\n
\nThis press release contains forward\u2010looking information within the meaning of applicable securities legislation, including statements with regards to the timing of the release of the third quarter results and related conference call, the Company\u2019s growth and capital markets objectives, and expectations regarding future results, including without limitation, revenue, margins and other financial results, which forward-looking information reflects the Company\u2019s current expectations regarding future events. Forward\u2010looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company\u2019s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward\u2010looking information. Such risks and uncertainties include, but are not limited to, having to change anticipated timing of our release and conference call, failure to meet our growth or capital markets objectives, or achieve our expected results, or other future adverse events, and the factors discussed under \u201cRisk Factors\u201d in the final prospectus of the Company dated October 22, 2020. The Company does not undertake any obligation to update such forward\u2010looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.\n<\/p>\n
Reconciliations of Non-IFRS Measures<\/b><\/p>\n
Adjusted EBITDA and Adjusted EBITDA Margin<\/i><\/b><\/p>\n
\n
\n \n In thousands of Canadian Dollars
\n
(except percentages)<\/i><\/p>\n<\/td>\n\n Three Months Ended <\/b><\/p>\n
September 30,<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n Nine Months Ended <\/b><\/p>\n
September 30,<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0\n<\/p>\n<\/td>\n
\n 2020<\/b><\/p>\n<\/td>\n
\n 2019<\/b><\/p>\n<\/td>\n
\u00a0<\/td>\n \n 2020<\/b><\/p>\n<\/td>\n
\n 2019<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n Net loss<\/b><\/p>\n<\/td>\n
\n \n($1,951)\n<\/p>\n<\/td>\n
\n \n($2,712)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n($11,542)\n<\/p>\n<\/td>\n
\n \n($6,935)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAmortization and depreciation\n<\/p>\n<\/td>\n
\n \n$664\n<\/p>\n<\/td>\n
\n \n$730\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$2,071\n<\/p>\n<\/td>\n
\n \n$2,020\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nShare-based compensation\n<\/p>\n<\/td>\n
\n \n$176\n<\/p>\n<\/td>\n
\n \n$21\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$236\n<\/p>\n<\/td>\n
\n \n$100\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nUnrealized and realized foreign exchange\n<\/p>\n<\/td>\n
\n \n($958)\n<\/p>\n<\/td>\n
\n \n$796\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$1,157\n<\/p>\n<\/td>\n
\n \n($200)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nInterest expense\n<\/p>\n<\/td>\n
\n \n$985\n<\/p>\n<\/td>\n
\n \n$905\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$2,926\n<\/p>\n<\/td>\n
\n \n$2,658\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOther expense (income)\n<\/p>\n<\/td>\n
\n \n$291\n<\/p>\n<\/td>\n
\n \n($74)\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$288\n<\/p>\n<\/td>\n
\n \n($248)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nReceivable factoring banking fees\n<\/p>\n<\/td>\n
\n \n$116\n<\/p>\n<\/td>\n
\n \n$229\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$416\n<\/p>\n<\/td>\n
\n \n$467\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTransaction-related costs\n<\/p>\n<\/td>\n
\n \n$54\n<\/p>\n<\/td>\n
\n \n–\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$69\n<\/p>\n<\/td>\n
\n \n$238\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nProvision for income taxes\n<\/p>\n<\/td>\n
\n \n($99)\n<\/p>\n<\/td>\n
\n \n$144\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n($155)\n<\/p>\n<\/td>\n
\n \n$1,528\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Adjusted EBITDA<\/b><\/p>\n<\/td>\n
\n \n($722)\n<\/p>\n<\/td>\n
\n \n$39\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n($4,534)\n<\/p>\n<\/td>\n
\n \n($372)\n<\/p>\n<\/td>\n<\/tr>\n
\n \n \nTotal revenues\n<\/p>\n<\/td>\n
\n \n$120,676\n<\/p>\n<\/td>\n
\n \n$92,405\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n$308,182\n<\/p>\n<\/td>\n
\n \n$264,561\n<\/p>\n<\/td>\n<\/tr>\n
\n \n Adjusted EBITDA Margin<\/b><\/p>\n<\/td>\n
\n \n(0.6%)\n<\/p>\n<\/td>\n
\n \n0.0%\n<\/p>\n<\/td>\n
\u00a0<\/td>\n \n \n(1.5%)\n<\/p>\n<\/td>\n
\n \n(0.1%)\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\nBBTV-F\n<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20201113005255\/en\/<\/a><\/span><\/p>\n
For Further Information:<\/b><\/p>\n
BBTV Holdings
\n<\/b>
Media:
\n<\/b>
Dan Gamble, Head of PR and Corporate Communications
\n
dgamble@bbtv.com
\n<\/a>
+1778 873 0422\n<\/p>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20201113005255\/en\/793048\/3\/BBTV_Logo.B%26W.jpg\"){kind=logo}
<\/td>\n<\/tr>\n