DUBLIN, LOS ANGELES and TORONTO, Sept.13, 2018 /CNW/ - QYOU Media Inc. (TSXV: QYOU; OTC: QYOUF) ("QYOU Media" or the "Company") is providing the following corporate update to shareholders and investors. The Company will cease broadcast production of US multicast network TBD while continuing its corporate growth trajectory through international distribution and strategic partnerships, new production formats, influencer marketing business development and its listing on the OTCQB exchange.
QYOU Media has retained Los Angeles-based investor relations firm IRTH Communications, LLC, to assist in supporting the Company's efforts with investor relations, particularly with respect to the Company's listing on the OTCQB under the symbol QYOUF. Further information on the Company's engagement with IRTH is included below.
QYOU Media will be presenting at The MicroCap conference in New York City on October 1-2, 2018.
QYOU Media will release financial results for the year ended June 30, 2018 on October 29, 2018.
CEO Curt Marvis and Chairman G. Scott Paterson will host a live conference call on Friday, September 14th, 2018 at 11:00 AM ET (8:00 AM PT). A question and answer period will follow the discussion.
To access the conference call by phone within Canada and the U.S.A. dial 888-231-8191 and outside Canada and the U.S.A. dial 647-427-7450. Callers should dial in five to ten minutes prior to the scheduled start time.
Management will accept questions by telephone, and individuals wishing to ask a question during the call can do so after the formal presentation.
An archive of the call will be available on QYOU Media's website as soon as it is made available from the conference call provider.
QYOU Media and Sinclair Digital Group LLC have reached an agreement to terminate the programming services agreement dated January 15, 2016 for the TBD multicast network ("TBD"). QYOU Media will forgive the outstanding amounts owing of US$87,000 and record a bad debt expense for the fiscal 2018 year ended June 30, 2018. In addition, QYOU Media will cease to program TBD effective September 20, 2018 as opposed to June 15, 2019 as originally set out in the programming agreement. During Fiscal 2019, the Company expects to report revenue and gross margin from this arrangement of approximately US$500,000 and US$160,000 respectively, as compared to the forecasted revenue and gross margin of approximately US$1,500,000 and US$480,000 had the contract ended on June 15, 2019.
The Company reported revenue of $4.1 million in the fiscal year ended June 30, 2017, expects to report $6.0 million for the fiscal year ended June 30, 2018 and expects revenue of between $8.0 and $9.0 million for the current fiscal year ending June 30, 2019.
The Company has renewed its focus on influencer marketing campaigns securing agreements in Q1 FY 2019 with high profile motion pictures including "Teen Titans Go!", "Smallfoot", and "The House with a Clock in its Walls".
Q India has received positive ratings and demographic results in a study conducted by TAM Media Research of its performance on the TATA Sky network, which revealed unique household viewership of nearly seven million homes in the first 20 weeks of 2018, with viewers aged 18 to 34 representing the largest demographic.
Over the period measured above, Q India outranked channels such as STAR World HD, MTV HD+, Zee Cafe HD and AXN HD.
The Company anticipates initial monetization through ad sales will begin in the fourth quarter of calendar 2018.
Andy Kaplan, former President of Sony Pictures Worldwide Networks, has been appointed Chairman of the board of directors of Q India.
QYOU Polska, the Company's channel distributed via PLAY Mobile, the largest mobile provider in Poland, continues to grow its offering of new Polish language programming with initial monetization of this channel anticipated to begin in the fourth quarter of calendar 2018.
Localized versions of QYOU Media's programming are now available in Hindi (India), Bahasa (Indonesia), Malay (Malaysia), Tagalog (Philippines) and Polish (Poland).
Heads Up Daily, (HUD):
HUD, our daily esports program launched in January 2018, makes European debut on AXN Spin, a pay-TV channel owned by Sony Pictures Television.
HUD has been nominated as a finalist in the Tempest Esports Business Awards to be presented in Las Vegas on October 2, 2018. HUD is nominated in the category of Best Esports Themed Program.
HUD "On The Go" is now live daily on Instagram TV (IGTV).
Curt Marvis, Co-Founder and Chief Executive Officer of QYOU Media, commented, "The Company is extremely focused on our premium short form video offerings primarily in India (and Southeast Asia and Poland) and our Heads Up Daily esports platform. We see tremendous opportunity through all of these platforms for millennial and Gen-Z audiences."
Further Information Regarding IRTH:
IRTH is a Los Angeles-based independent investor relations and consulting firm that provides investor, public relations, financial communications and strategic consulting services to private and publicly held companies. Pursuant to the investor relations agreement between the Company and IRTH effective as of July 20, 2018 (the "Investor Relations Agreement"), IRTH will focus on developing and expanding QYOU Media's communications and relations with the investor community through a comprehensive investor relations program, including general counselling services, assisting with analyst and investor meetings, financial communications and investor outreach, strategic response, press management and website development.
The Investor Relations Agreement has an initial term of twelve months commencing July 20, 2018 and will automatically renew for an additional twelve months. After the first six months of the initial term, the Company can cancel the Investor Relations Agreement upon 30 days' prior written notice to IRTH.
Pursuant to the Investor Relations Agreement, IRTH will be paid a fixed monthly fee of US$7,500, plus a set-up fee of US$100,000 at the beginning of the initial term and upon each renewal term, if any. The fees paid by the Company to IRTH are for services only.
The Company and IRTH act at arm's length, and IRTH has no present interest, directly or indirectly, in the Company or its securities.
About QYOU Media:
QYOU Media Inc. is a fast-growing global media company that curates and packages premium 'best-of-the-web' video for multiscreen distribution. Founded and created by industry veterans from Lionsgate, MTV, and CinemaNow, QYOU Media's millennial-focused products including linear television networks, genre-based series, mobile apps, and video-on-demand formats reach millions of customers on six continents. Distribution partners include Vodafone, 21st Century Fox, Liberty Global, Showmax, iflix, Super Channel and TATA Sky.
Forward-looking Statements This press release may contain "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws, including, without limitation, statements regarding the future prospects of QYOU Media, Q India and QYOU Polska, the expansion of the Company's international programming and any increase in viewership and sales revenues, and the impact, if any, of the early termination of the Programming Agreement on the Company's future results of operations and financial results. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, although considered reasonable by management, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Additional risks and uncertainties regarding QYOU Media are described in its publicly available disclosure documents, filed by QYOU Media on SEDAR at www.sedar.com except as updated herein. The forward-looking statements contained in this news release represent QYOU Media's expectations as of the date of this news release, or as of the date they are otherwise stated to be made, and subsequent events may cause these expectations to change. Except as required by law, QYOU Media undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE QYOU Media Inc.
For further information: Jeff Walker, Investor Relations - for The QYOU, + 1 403 221 0915, [email protected]