Adjusted EBITDA Improves 26%
Completes Strategic Re-Alignment Forming a Creator Economy and Social Media Marketing-Focused Business Model
TORONTO, MUMBAI, India and LOS ANGELES, May 30, 2025 /CNW/ - QYOU Media Inc., (TSXV: QYOU) (OTCQB: QYOUF) a company operating in India and the United States producing and distributing content created by social media stars and digital content creators, is reporting financial results for the three months and quarter (Q1 FY 2025) ended March 31, 2025.
Strategic Repositioning and Discontinued Operations
On March 31, 2025, the Company completed the sale of its "Q" India Channel Business as part of a broader strategic realignment aimed at concentrating resources on its core influencer marketing businesses in North America and India. The repositioning initiative began in the third quarter of fiscal 2024, with the Company initiating the discontinuation of the Maxamtech mobile gaming business. The divestiture of the "Q" India Channel Business completes the Company's re-alignment strategy and enhances its long-term profitability profile.
These actions have resulted in a short-term decrease in both quarterly revenue and operating expenses. Management views them as a proactive and intentional step toward optimizing the Company's financial performance. By focusing on the influencer marketing business, Management believes that the Company is better positioned to achieve sustainable and meaningful profitability.
As a result of these discontinued operations, comparisons of financial performance for the first quarter of 2025 and future periods will exclude the discontinued business units. Year-over-year comparisons will be adjusted accordingly to reflect the Company's new strategic focus.
- The company recorded quarterly revenue of $5,726,804, a decrease of 12% compared to the same period prior year. This was primarily related to paused and delayed campaigns in the US business in response to global and market uncertainty in the quarter. Management believes that this shortfall will be recovered over the course of the 2025 fiscal year.
- For the period ended March 31, 2025 compared to the same period prior year, the Adjusted EBITDA of the continuing operations improved by $58,924 or 26% driven by the strategic cost control in all business units while continuing strategic investments in the workforce and relationships in the social media space.
- Cash increased by $306,891 or 32% to $1,253,675 as at March 31, 2025, compared to $946,784 as at December 31, 2024. Cash provided by continuing operating activities for the period ended March 31, 2025 was $683,523 compared to $169,233 in the same period prior year. The Company started generating working capital from the meaningful returns of the strategic investments made to the workforce and new relationships in the social media space combined with operating efficiencies across the Company.
- Net Loss from Continuing Operations grew 8% or $45,691.
QYOU Media CEO and Co-Founder Curt Marvis commented, "There is a great deal of excitement throughout the company now that we have completed our strategic mission to focus 100% of our efforts on Influencer and Social Media Marketing, all the while surrounded by the burgeoning and undeniable growth in what has become known globally as the Creator Economy. When coupled with our continued efforts to move closer to becoming the first Influencer Marketing listed company in India on the BSE (formerly the Bombay Stock Exchange) via our India subsidiary, Chatterbox Technologies, all management shares in the enthusiasm for the positive opportunities that lie ahead. It has been a team effort all along the way and we could not be more excited about what the future holds for all employees and shareholders in the second half of 2025 and beyond".
*Note on Adjusted EBITDA:
To supplement our consolidated financial statements, which are prepared and presented in accordance with International Financial Reporting Standards ("IFRS"), we present Earnings Before Interest Tax Depreciation and Amortization ("Adjusted EBITDA") which is a non-IFRS financial measure. The presentation of non-IFRS financial measurement are not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss or net income (loss) or any other performance measures derived in accordance with IFRS or as an alternative to net cash provided by operating activities or any other measures of cash flows or liquidity.
We define earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") as revenue minus operating expenses excluding non-cash and or non-recurring operating expenses of stock-based compensation, marketing credits, depreciation and amortization (interest and taxes are not included in the Company's operating expenses). Adjusted EBITDA is used as an internal measure to evaluate the performance of our operating segments. We believe that information about this non-IFRS financial measure assists investors by allowing them to evaluate changes in operating results of our business separate from non-operational factors that affect operating income (loss) and net income (loss), thus providing insights into both operations and other factors that affect reported results. A limitation of the use of Adjusted EBITDA as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Furthermore, this measure may vary among companies; thus Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of other companies.
About QYOU Media
Among the fastest growing creator driven media companies, QYOU Media operates in India and the United States through its subsidiaries, producing, distributing and monetizing content created by social media influencers and digital content stars. Our influencer marketing business in India, Chtrbox, is an influencer and marketing platform and agency, connecting brands/products and social media influencers. In the United States, we power major film studios, game publishers and brands to create content and market via creators and influencers. Founded and managed by industry veterans from Lionsgate, MTV, Disney, Sony and TikTok. QYOU Media's millennial and Gen Z-focused content has reached more than one billion consumers. Experience our work at www.qyoumedia.com and https://www.chtrbox.com/
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of applicable securities laws. Words such as "expects'', "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein may include, but are not limited to, information concerning the completion of future investments, the approval of the Exchange of the investments, the approval of the Reserve Bank of India of future investments, the expected use of proceeds from the investment, and statements relating to the business and future activities of QYOU. These forward-looking statements are based on QYOU's current projections and expectations about future events and other factors management believes are appropriate. Although QYOU believes that the assumptions underlying these forward-looking statements are reasonable, they may prove to be incorrect, and readers cannot be assured that the offering and the closing thereof will be consistent with these forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements as a result of numerous factors, including certain risk factors, many of which are beyond QYOU's control. Additional risks and uncertainties regarding QYOU are described in its publicly-available disclosure documents, filed by QYOU on SEDAR (www.sedar.com) except as updated herein. The forward-looking statements contained in this news release represent QYOU'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. QYOU 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.
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.
Doug Barker, 213-564-0007
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