TORONTO and LOS ANGELES, March 1, 2019 /CNW/ - QYOU Media Inc. (TSXV: QYOU) (OTCQB: QYOUF) ("QYOU Media" or the "Company"), a next generation global media company that curates, packages and distributes premium digital short-form video for multiscreen distribution has reported financial results for the quarter ended December 31, 2018. All figures appear in Canadian dollars.
Financial Highlights for the Quarter
- For the three months ending December 31, 2018, revenues were $916,527 as compared to $1,574,393 for the three months ended December 31, 2017, a decrease of $657,866 or 42%. The decrease in revenue is primarily due to the termination of the programming services agreement with Sinclair Digital Group LLC in September 2018.
- For the three months ended December 31, 2018, other operating expenses decreased by $774,950 or 34% compared to the three months ended December 31, 2017. For the six months ended December 31, 2018, other operating expenses decreased by $829,708 or 19% compared to the six months ended December 31, 2017. The decrease for the three months and six months ended December 31, 2018 is primarily due to cost cutting measures to realign the operations.
- For the three months ended December 31, 2018, net loss decreased by $304,396 as compared to the three months ended December 31, 2017, due to decrease in revenue offset by efforts to rationalize the cost structure to align operations with the revenue base. For the six months ended December 31, 2018, net loss decreased by $332,328 as compared to the six months ended December 31, 2017.
- Cash as at December 31, 2018 was $865,182 compared to $1,069,248 as at June 30, 2018, representing a decrease of $204,066. The decrease in cash is due to cash used in operating activities of $1,775,352 and cash used in investing activities of $1,051,264. This was offset by the completion of a short form prospectus financing in July, 2018 for net proceeds of $2,660,326, net of issuance costs.
QYOU Media's CEO, Curt Marvis, stated, "We continue to work diligently towards transitioning into an ad based and media placement model that we believe ultimately holds much more growth potential for our business. We are already reaping the benefits of this in our influencer marketing business with solid margins and repeat customers at an all-time high. We continue our move into driving higher margin media and ad sales to support our owned and operated productions and channels, which we believe will drive the longer term benefits in India and other global markets where we are experiencing significant growth."
In connection with the stock option plan and restricted share unit ("RSU") plan of the Company , the Company has granted an aggregate of 4,275,000 options to purchase common shares of the Company at an exercise price of $0.075 per share, exercisable until February 27, 2024 and 5,350,000 RSUs, to a group of 27 individuals including board members, employees and consultants, all subject to any necessary regulatory approvals.
James Swayze, a board member with QYOU Media also announced his decision to step down from his board position due to increased demands following the recent acquisition of his business, Symbility Solutions. No replacement has been appointed at this time.
Detailed information in QYOU Media's financial statements for the quarters ended December 31, 2018 and 2017, the notes to the financial statements and QYOU Media's interim management discussion and analysis and quarterly highlights have been posted to the Company's website and have been filed under QYOU Media's profile on SEDAR at www.sedar.com.
About QYOU Media Inc.
QYOU Media Inc. is a fast-growing global media company that curates and packages premium short form content from leading digital video creators for multiscreen distribution. Founded and created by industry veterans from Lionsgate, MTV, and CinemaNow, QYOU's millennial and Gen Z-focused products, including linear television networks, genre-based series, mobile apps, and video-on-demand formats, reach more than 500 million people around the world. Distribution partners include Vodafone, 21st Century Fox, Liberty Global, Showmax, iflix, Jio, Super Channel and TATA Sky.
This press release may contain "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws, including, without limitation, the Company's planned transition to an ad based and media placement model, future geographical and distribution expansion, future revenue growth, audience composition for the Company's programming and the future plans of the Company. 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: Zoe Mumba, Platform Communications for QYOU Media, +44 (0) 207 486, [email protected]; Natasha Roberton, VP Marketing, QYOU Media, +49 152 2254 7680, [email protected]; Jeff Walker, Investor Relations for QYOU Media, +1 403 221 0915, [email protected]