SAN FRANCISCO, Nov. 4, 2015 /CNW/ - Frankly Inc. (the "Company") (TSX-V: TLK) a leading content and conversation platform, today announced that the Company has filed its Business Acquisition Report (BAR) following the closing of its acquisition of Worldnow on August 25, 2015.
Frankly Inc. and Worldnow Pro-Forma Financial Highlights
(In United States dollars except per share amounts)
- Pro-forma revenue for the six months ended June 30, 2015 was $14.2 million and $26.6 million for the year ended December 31, 2014
- Pro-forma EBITDA for the six months ended June 30, 2015 was $(0.8) million and $(3.8) million for the year ended December 31, 2014
- Pro-forma cash and cash equivalents of $10.4 million as at June 30, 2015
Frankly Inc. and Worldnow Pro-Forma Operational Highlights (1H 2015)
- Frankly is a leading digital platform in the United States, being ranked in the top 20 news/information sites and top 50 websites based on number of monthly unique visitors
- More than 150 television customers, blue chip enterprise partners and strong blue-chip advertising base
- Experienced senior leadership team in technology and digital media
- Combined company with more than 100 employees with offices in New York City and HQ in San Francisco
"This is a transformative acquisition both financially and operationally for our business," said Steve Chung, Founder and CEO of Frankly. "It significantly accelerates our revenue and profitability goals and substantially expands our overall growth opportunity. Our acquisition of Worldnow enables us to integrate our messaging capability seamlessly into the Worldnow news content platform that touches millions of users a day. News happens in real-time. With our chat capabilities integrated into Worldnow's platform, users can interact with each other and discuss current news and events as they unfold. For the next nine to 12 months, Frankly will be focused on serving the news and media industry with our combined news and conversation platform to drive revenue growth and profitability."
Mr. Chung continued: "As a combined entity we have an opportunity to capture an even greater number of subscribers, especially given Worldnow's ability to reach 91% of U.S. households and the explosive growth of digital advertising. Going forward, we will drive revenue growth by: developing next generation mobile apps for our local broadcast customers, delivering highly targeted advertisements into our news and conversation platform, and leveraging big data to drive more business for our customers. This transaction is another step toward Frankly becoming ubiquitous as the leading mobile technology and platform for our current and prospective customers."
Selected Financial Information
(In United States dollars except per share amounts)
Six Months Ended June 30, 2015 |
Year Ended December 31, 2014 |
|||||
Frankly Inc. |
Worldnow |
Frankly Inc. |
Frankly Inc. |
Worldnow |
Frankly Inc. |
|
Revenue |
68,154 |
14,176,583 |
14,244,737 |
172,377 |
26,455,220 |
26,627,597 |
EBITDA, b/f non- |
(5,354,442) |
4,371,469 |
(853,457) |
(10,361,165) |
6,492,995 |
(3,818,730) |
Outlook
As Frankly completed the acquisition of Worldnow on August 25, 2015, third quarter financial results will only include approximately one-month of revenue from Worldnow. Frankly's primary focus post-acquisition has been the integration of the two companies, with an eye on building a strong foundation for growth in fiscal 2016. While the Company is pleased with its achievements in Q3 2015, Worldnow underwent some customer transition in the quarter and we anticipate several one-time expenses related to the integration efforts. Frankly remains optimistic about its continued growth opportunities.
About Frankly: Frankly provides a content and conversation platform for media companies, enterprises, and brands to grow their audience, build engagement, manage their content, and generate revenue across their digital properties. Frankly Media provides content management and advertising solutions to local news media in the United States, covering approximately 100 million monthly users at its peak. Frankly Platform is a white-labeled engagement platform that serves top brands and influencers along with Frankly Media customers. Founded in 2013, Frankly is headquartered in San Francisco, California, with offices in New York City. The Company is publicly traded under ticker TLK on Canada's TSX Venture Exchange. To learn more, please visit www.franklyinc.com or email [email protected].
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding forward-looking statements:
This release includes forward-looking statements regarding Frankly and their respective businesses. Forward-looking events and circumstances discussed in this release, may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the parties. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Frankly undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Frankly Inc.
Conrad Seguin, NATIONAL Equicom, 416.586.1951, [email protected] or Frankly Inc., Steve Chung, Chief Executive Officer, 415.861.9797
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