VANCOUVER, March 31, 2020 /CNW/ - Network Media Group Inc. (TSX: NTE.V) (OTCMKTS: NMGGF) ("Network" or "the Company") today reported annual results for the year ended Nov 30, 2019, including revenues of $16,278,621, net income of $4,029,811, an Adjusted EBITDA of $5,099,283, and earnings per share of $0.06. The financial statements and related Management's Discussion and Analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.
Network CEO Derik Murray stated, "We have worked hard to establish our U.S. and global business by consistently producing feature documentaries and documentary series of the highest quality and our team's efforts are reflected in our results. Partnering with the most respected media and distribution brands in the world has provided a continuum of production opportunities that our company has been scaled to embrace, and in turn, deliver at the highest level. We are well-positioned to continue our strong organic growth trajectory, as evidenced by our expanding development slate, increasing levels of production, and multiple new broadcast and streaming partners that we are privileged to work with."
The financial highlights for Network's fiscal 2019 include the following, all of which are the highest in the Company's history:
- Revenue. Network's 2019 revenue was $16.3M compared to $2.7M in 2018 – an increase of 509%;
- Net Income. Network's 2019 net income was $4.0M compared to a net loss of $0.5M in 2018, $0.06 per share (2018 - $0.00);
- Adjusted EBITDA. Network's 2019 adjusted EBITDA was $5.1M compared to $0.6M in 2018, $0.07 per share (2018 - $0.01);
- Backlog. Contracted future revenues of $17.9M with $15.6M to be recorded in the next 12 months and $2.3M beyond 12 months.
Network CFO Darren Battersby added, "We are extremely pleased with our financial results from 2019, which are our best results to date in terms of revenues, EBITDA and net profit, which are driven by our expanding production slate in both feature documentaries and docu-series. Not only is the Company increasing the amount of work it is doing with its legacy partners, but we are already in production on projects with new streaming partners that are part of the explosion of new streaming services being launched by the industry's major players, a customer base we will be expanding. We look forward to another growth year in 2020, and continuing to build the Network brand, which is distinguished by superior quality productions that consistently earn commercial and critical success."
The financial results for Network's three months ended Q4 2019 include the following highlights:
- Revenues of $9.9M (2018 - $0.9M);
- Net income of $2.5M - $0.04 per share (2018 – loss of $0.4M - $0.00 per share);
- Adjusted EBITDA of $2.8M - $0.04 per share (2018 – negative $0.2M - $0.00 per share).
Network's 2019 Select Highlights:
- Network delivered five projects in fiscal 2019;
- Network launched its first series in collaboration with famed fashion designer John Varvatos, entitled Punk, which premiered on Epix in the U.S., Crave in Canada, and Sky in the UK, and the series was nominated by the Critics' Choice Awards for Best Limited Documentary Series;
- Network was named to the 2019 Realscreen Global 100, an annual compilation of the best global production companies working in the non-fiction and unscripted visual content industry;
- Network announced its first project in collaboration with supermodel and television personality Tyra Banks, a global series for Quibi entitled Beauty;
- Network's feature documentary I Am Patrick Swayze was cable's most-watched personality documentary on linear TV for 2019, and also won the Festival Grand Prize award at the San Antonio Film Festival;
- Network's feature documentary I Am MLK Jr. won three Leo Awards, including Best Documentary;
- Network's feature documentary I Am Richard Pryor had its world premiere at SXSW (the South by Southwest Festival);
- Network's feature documentary I Am Heath Ledger won the Realscreen Award for Best Programming in the Non-Fiction History & Biography category, as well as the Overall Excellence Award for Non-Fiction;
- Network's YouTube Originals eight-part docu-series The Age of A.I. has received more than 41M views to date for the first episode alone;
- Investment banker Ali Pejman joined Network's Board of Directors on October 22, 2019, and was named Chairman on March 2, 2020.
Network CEO Derik Murray concluded, "As proud as we are of our entire team, and as excited as we are for the year ahead at Network, we of course, are all aware of the myriad issues arising from the coronavirus pandemic. In that spirit, we are acting with the utmost care and responsibility in the face of this outbreak, keeping the health and welfare of our employees, our partners, our families, and our stakeholders, as our top priority. As well, we are working with our global buyers and our distributors on any changes in scheduling or disruptions caused by COVID-19, and our business remains flexible to pivot on any requirements. We thank our shareholders and partners for their ongoing support, and we encourage everyone to share and exhibit that same support to each other as we work through a difficult period together to contain this pandemic."
About Network Entertainment
Network Media Group is the parent company of Network Entertainment Inc.
Network Entertainment is a creatively driven, boutique film and television production company that creates, finances, produces, and delivers award-winning programming to television, digital platforms and movie audiences around the world. The Network premium brand of content delivers world-class casts, and features visually cinematic, richly crafted storytelling. The Company's productions are consistently embraced by both audiences and critics alike, garnering awards, record ratings and unparalleled media coverage for Network and its partners.
Network has a full slate of films and series in current production, including a feature documentary on Jackie Kennedy Onassis, and a multi-part series for Quibi on Beauty, executive produced by Tyra Banks. The Company's most recent productions include Punk, a four-part series for Epix with executive producers John Varvatos and Iggy Pop, the feature documentaries I Am Richard Pryor, which premiered at last year's SXSW Film Festival, and I Am Patrick Swayze, which premiered at the 2019 San Antonio Film Festival, winning the Festival Grand Prize, and The Age of A.I., a YouTube Originals series hosted and executive produced by Robert Downey Jr. Among the Company's many accolades, Network was named to the Realscreen Global 100 List, an annual compilation of the best global production companies working in the non-fiction and unscripted visual content industry.
Network's broadcast and distribution partners include: A&E, CBC, Crave, Epix, Fremantle, HBO Canada, Lionsgate, National Geographic, NBC/Peacock, Paramount Network, Thunderbird, and YouTube. The Company's work has been recognized by the Academy Awards, the Emmys, the Leos, Realscreen Awards, the Gemini Awards, the Los Angeles Film Festival, the AFI Docs Film Festival, San Antonio Film Festival, Seattle International Film Festival, Tribeca Film Festival, Hawaii International Film Festival, Houston International Film Festival, Vancouver International Film Festival, Banff Television Festival, and the International Film and Television Festival of New York.
For additional information on Network Entertainment Inc., visit www.networkentertainment.ca
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Cautionary Statement on Forward-looking Information
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. These statements are necessarily based upon management's perceptions, beliefs, assumptions and expectations, as well as a number of specific factors and assumptions that, while considered reasonable by management of the Company as of the date of such statements, are inherently subject to significant uncertainties and contingencies that could result in the forward-looking information ultimately, perhaps materially, being incorrect. All forward-looking information in this news release involve known and unknown risks, uncertainties and other factors that are beyond the control of the Company and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof.
SOURCE Network Media Group Inc.
For further information: Enquiries: Trevor Treweeke, Director of Capital Markets, 778.870.5028, [email protected]