VANCOUVER, BC, Aug. 14,
2023 /CNW/ - BBTV Holdings Inc. (TSX: BBTV) (OTCQX:
BBTVF) (the "Company"), a media tech company that uses technology
enabled solutions to help content creators become more successful,
today announced financial results for Q2 2023 for the period ended
on June 30, 2023.
The Management Discussion and Analysis ("MD&A"), along with
full financial statements are posted and available on SEDAR at
www.sedar.com. All dollar amounts are expressed in thousands of
Canadian dollars except where otherwise indicated.
"While total views increased 20% on a year over year basis,
YouTube Shorts now represents 52% of the company's total views,
which is still in its early stages of monetization and trending
positively. " said Shahrzad Rafati,
Chairperson and CEO of BBTV. "We remain pleased with the rate that
we are converting the Content Management deal pipeline which
continues to be robust and growing. We signed three major contracts
in the first half of the year, which we expect will help us to
continue growth in Plus Solutions revenue."
KB Brinkley, CFO of BBTV commented "We continue to extend our
cost optimization efforts by further aligning operations towards
Plus Solutions and removing costs from our shared services and Base
Solutions line of business. Our cost optimization efforts have so
far resulted in a 34% decline in operating expenses compared to Q2
2022 and a 28% reduction in costs when comparing the first half of
2023 to first half of 2022. The discounted payout option that we've
arranged with RTL, combined with improvements in operating costs
and upside from our recent business development wins provide us
with an enhanced path to profitability."
Q2 2023 Financial and Operational Highlights:
BBTV ended Q2 2023 with $14.4
million in cash compared to $22.8
million in the previous year Q2 2022. Its long-term debt
balance was $44.3 million as of
June 30, 2023, with maturities
primarily in 2026 or 2027, which is down by $9.8 million from $54.1
million in the prior year second quarter. The decrease of
debt is primarily related to the IFRS accounting treatment
associated with the RTL discounted payout option announced during
the quarter.
Total views for the quarter reached 114.4 billion, a 20%
increase compared to the previous year quarter, and a 1% increase
compared to Q1 2023. The increase in views was driven by a 223%
year-over-year increase in YouTube Shorts viewership to 59.8
billion views in Q2 2023, which is approximately 52% of total
views. Monetization in the form of RPM (Revenue per Thousand Views)
ticked up by 2% to $0.54 compared to
$0.53 in Q1 2023 and declined by 43%
compared to the previous year. The year-over-year decline in RPM is
a direct result of the emergence of YouTube Shorts views. Over
time, it is expected that the monetization of YouTube Shorts
should increase to mirror those of regular-length YouTube video.
Excluding Shorts, the monetization of 54.5 billion regular form
content views remained steady near typical rates at $1.14. As YouTube Shorts RPMs track higher,
notwithstanding typical seasonality, overall RPMs are expected to
increase over time.
Total revenue of $72.8 million
declined by 27% compared to $99.9
million in Q2 2022 primarily due to a higher mix of YouTube
Shorts views, which are at early stages of monetization.
The Company continued efforts to optimize its cash cost base, to
re-align operations for maximum performance, and to accelerate
towards profitability. Combined with cost optimization completed
last year, the Company has reduced cash expenses in the Base
Solutions business. The Company continues to focus on operational
efficiencies and alignment towards maximum performance, and the
expense ratio across the business supports current strategies going
forward.
Overall, BBTV's operating expenses of $10.6 million have declined by $5.6 million or 34% compared to the previous year
Q2 2022, and 28% compared to the first half of 2022 due to resource
reductions and operational realignment. The Company expects to
continue to find ways to optimize operations in the coming
months.
Plus Solutions, including popular solutions such as Content
Management and Direct Advertising Sales, deliver higher margin
monetization opportunities for BBTV. Overall, during Q2 2023, Plus
Solutions represented approximately 15% of total revenue compared
to 13% in Q2 2022, and 33% of Adjusted Gross Profit. With a large
pipeline of mostly global enterprise clients, Plus Solutions should
continue to grow as a percentage of total revenue and Adjusted
Gross Profit.
As of Q2 2023, Content Management revenue is tracking as our
strongest Plus Solution with solid visibility on pipeline
conversion. During the quarter, the Company began deploying two
major Content Management contracts that have the potential to
become among the top five largest Content Management revenue
streams.
Outlook:
BBTV's monetization is closely tied to the performance of
YouTube. Consumer preference has shifted from long-form content to
micro-content across all major platforms, and while YouTube
introduced YouTube Shorts a number of years ago to respond to
consumer preferences, BBTV's monetization on YouTube Shorts only
began on February 1, 2023. This
format now represents about 52% of BBTV's viewership in Q2 2023, up
from 20% of viewership in Q2 2022. Once monetization of YouTube
Short views matures across the Company's entire library, it could
represent significant incremental revenue to BBTV. Google has
stated publicly that, over time, it expects to close the
monetization gap between YouTube Shorts and regular YouTube
content.
Plus Solutions continue to represent significant revenue growth
potential for the Company as well as viewership and valuable
incremental revenue streams for partners. Led by recent Content
Management contract successes and a growing overall pipeline for
the solution. Additionally, Direct Advertising Sales should
continue to grow.
Overall, the diversity of revenue streams, combined with
improved liquidity and cost optimization programs, have positioned
BBTV to weather future macroeconomic uncertainties while also
accelerating towards sustained profitability.
Q2 2023 FINANCIAL TABLES:
|
Three Months
Ended
|
|
Q2
2023(1)
|
Q2
2022(1)
|
$
Change
|
%
Change
|
|
Base Solutions
revenue
|
$62,094
|
$86,932
|
($24,838)
|
(29 %)
|
|
Plus Solutions
revenue
|
$10,703
|
$12,996
|
($2,293)
|
(18 %)
|
|
Total
revenue
|
$72,797
|
$99,928
|
($27,131)
|
(27 %)
|
|
Gross profit (loss)
(which includes PPA Amortization)
|
($1,616)
|
$806
|
($2,422)
|
(300 %)
|
|
Gross Margin (which
includes PPA Amortization)
|
(2 %)
|
1 %
|
|
|
|
Adjusted Gross
Profit
|
$ 5,816
|
$8,266
|
($2,450)
|
(30 %)
|
|
Gross Margin Excluding
PPA Amortization
|
8 %
|
8 %
|
|
|
|
Net
income/(loss)
|
$3,842
|
($14,244)
|
$18,086
|
(127 %)
|
|
Adjusted
EBITDA
|
($2,919)
|
($5,654)
|
$2,735
|
(48 %)
|
|
Cash flow used in
operating activities
|
($3,894)
|
($6,361)
|
($2,467)
|
(39 %)
|
(1) These figures are derived
from the Company's IFRS financial statements. Adjusted Gross Profit
and Adjusted EBITDA are non-GAAP financial measures and Gross
Margin Excluding PPA Amortization is a non-GAAP ratio. These terms
are defined under "Key Metric Definitions" below. A reconciliation
of non-GAAP financial measures and non-GAAP ratios are set out
below under "Non-GAAP Financial Measures and Non-GAAP Ratios
Reconciliation Tables".
|
Three Months
Ended
|
|
Q2
2023(1)
|
Q1
2023(1)
|
$
Change
|
%
Change
|
|
Base Solutions
revenue
|
$62,094
|
$60,897
|
$1,197
|
2 %
|
|
Plus Solutions
revenue
|
$10,703
|
$10,867
|
($164)
|
(2 %)
|
|
Total
revenue
|
$72,797
|
$71,764
|
$1,033
|
1 %
|
|
Gross profit (loss)
(which includes PPA Amortization)
|
($1,616)
|
($795)
|
($821)
|
103 %
|
|
Gross Margin (which
includes PPA Amortization)
|
(2 %)
|
(1 %)
|
|
|
|
Adjusted Gross
Profit
|
$5,816
|
$6,685
|
($869)
|
(13 %)
|
|
Gross Margin Excluding
PPA Amortization
|
8 %
|
9 %
|
|
|
|
Net
income/(loss)
|
$3,842
|
($14,599)
|
$18,441
|
(126 %)
|
|
Adjusted
EBITDA
|
($2,919)
|
($2,872)
|
($47)
|
2 %
|
|
Cash flow used in
operating activities
|
($3,894)
|
($10,844)
|
$6,950
|
(64 %)
|
(1) These figures
are derived from the Company's IFRS financial statements. Adjusted
Gross Profit and Adjusted EBITDA are non-GAAP financial measures
and Gross Margin Excluding PPA Amortization is a non-GAAP ratio.
These terms are defined under "Key Metric Definitions" below. A
reconciliation of non-GAAP financial measures and non-GAAP ratios
are set out below under "Non-GAAP Financial Measures and Non-GAAP
Ratios Reconciliation Tables".
Q2 2023 KEY METRICS:
|
Three Months
Ended
|
|
Q2
2023
|
Q2
2022
|
Change
|
%
Change
|
|
|
|
|
|
|
Views
(billions)
|
114
|
95
|
19
|
20 %
|
|
RPMs (in
dollars)
|
$0.54
|
$0.94
|
($0.40)
|
(43 %)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Q2
2023
|
Q1
2023
|
Change
|
%
Change
|
|
|
|
|
|
|
Views
(billions)
|
114
|
113
|
1
|
1 %
|
|
RPMs (in
dollars)
|
$0.54
|
$0.53
|
$0.01
|
2 %
|
Conference Call Details
Operator Assisted Dial-In:
United States (Local): +1 404
975 4839
United States (Toll-Free): +1 833
470 1428
Global Dial-In
Numbers: https://www.netroadshow.com/conferencing/global-numbers?confId=53443 Access
Code: 505342
In order to avoid wait time and bypass speaking with an operator
to join the call, participants can register in advance by following
the Registration link below:
https://www.netroadshow.com/events/login?show=6c185fcf&confId=53443
Participants will receive a Calendar Invitation with call access
details including a unique PIN and Replay details.
Replay Details:
Replay Expiration Date: Monday, August 28, 2023 11:59 PM PDT
Replay Dial-In:
United States (Local): 1 929 458
6194
United States (Toll-Free): 1 866
813 9403
Access Code: 161747
Income Statement
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June
30,
|
|
2023
$
|
2022
$
|
%
change
|
|
2023
$
|
2022
$
|
%
change
|
|
|
|
|
|
|
|
|
|
Revenue
|
$72,797
|
$99,928
|
(27 %)
|
|
$144,561
|
$198,764
|
(27 %)
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
|
|
|
|
Content creator and
other fees
|
$66,552
|
$91,272
|
(27 %)
|
|
$131,217
|
$180,593
|
(27 %)
|
|
Amortization
|
$7,861
|
$7,850
|
0 %
|
|
$15,755
|
$15,674
|
1 %
|
|
Total cost of
revenue
|
$74,413
|
$99,122
|
(25 %)
|
|
$146,972
|
$196,267
|
(25 %)
|
|
|
|
|
|
|
|
|
|
Gross profit
(Loss)
|
($1,616)
|
$806
|
(300 %)
|
|
($2,411)
|
$2,497
|
(197 %)
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
$4,339
|
$8,545
|
(49 %)
|
|
$9,506
|
$16,286
|
(42 %)
|
|
General and
administration
|
$4,123
|
$4,566
|
(10 %)
|
|
$8,116
|
$8,878
|
(9 %)
|
|
Research and
development
|
$1,086
|
$1,404
|
(23 %)
|
|
$2,278
|
$2,740
|
(17 %)
|
|
Share-based
compensation
|
$156
|
$686
|
(77 %)
|
|
$870
|
$1,719
|
(49 %)
|
|
Amortization and
depreciation
|
$903
|
$953
|
(5 %)
|
|
$1,927
|
$1,972
|
(2 %)
|
|
Total operating
expenses
|
$10,607
|
$16,154
|
(34 %)
|
|
$22,697
|
$31,595
|
(28 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
($12,223)
|
($15,348)
|
(20 %)
|
|
($25,108)
|
($29,098)
|
(14 %)
|
|
|
|
|
|
|
|
|
|
Gain on debt
modification
|
$18,007
|
-
|
NA
|
|
$18,007
|
-
|
NA
|
|
Foreign exchange gain
(loss)
|
$1,186
|
($954)
|
(224 %)
|
|
$1,126
|
($355)
|
(417 %)
|
|
Interest
expense
|
($2,881)
|
($2,203)
|
31 %
|
|
($5,619)
|
($4,382)
|
28 %
|
|
Other
expense
|
($1,451)
|
($152)
|
855 %
|
|
($2,414)
|
($491)
|
392 %
|
|
Transaction-related
costs
|
($90)
|
($54)
|
67 %
|
|
($61)
|
($539)
|
(89 %)
|
|
Total
non-operating
(expenses) income
|
$14,771
|
($3,363)
|
(539 %)
|
|
$11,039
|
($5,767)
|
(291 %)
|
|
|
|
|
|
|
|
|
|
Gain (Loss)before
income taxes
|
$2,548
|
($18,711)
|
(114 %)
|
|
($14,069)
|
($34,865)
|
(60 %)
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
$1,294
|
$4,467
|
(71 %)
|
|
$3,312
|
$8,082
|
(59 %)
|
|
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
$3,842
|
($14,244)
|
(127 %)
|
|
($10,757)
|
($26,783)
|
(60 %)
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
Exchange differences
on
translation of operations in
currencies other than
Canadian dollars
|
($122)
|
($107)
|
14 %
|
|
($81)
|
($500)
|
(84 %)
|
|
|
|
|
|
|
|
|
|
Loss and
comprehensive loss
|
$3,720
|
($14,351)
|
(126 %)
|
|
($10,838)
|
($27,283)
|
(60 %)
|
|
|
|
|
|
|
|
|
|
Basic income (loss)
per
share (in dollars)
|
$0.18
|
($0.67)
|
|
|
($0.50)
|
($1.27)
|
|
|
Diluted income (loss)
per
share (in dollars)
|
$0.16
|
($0.67)
|
|
|
($0.50)
|
($1.27)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
outstanding
Basic (in whole numbers)
|
21,647,547
|
21,221,283
|
|
|
21,569,050
|
21,117,461
|
|
|
Diluted (in whole
numbers)
|
23,643,859
|
21,221,283
|
|
|
21,569,050
|
21,117,461
|
|
Non-GAAP Financial Measures and non-GAAP Ratios
Reconciliation Tables:
Adjusted EBITDA and Adjusted EBITDA Margin
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
2023
|
2022
|
2023
|
2022
|
|
Net income
(loss)
|
$3,842
|
($14,244)
|
($10,757)
|
($26,783)
|
|
Amortization and
depreciation(1)
|
$8,764
|
$8,803
|
$17,682
|
$17,646
|
|
Share-based
compensation
|
$156
|
$686
|
$870
|
$1,719
|
|
Unrealized and
realized foreign exchange
|
($1,186)
|
$954
|
($1,126)
|
$355
|
|
Interest
expense
|
$2,881
|
$2,203
|
$5,619
|
$4,382
|
|
Gain on debt
modification
|
($18,007)
|
-
|
($18,007)
|
-
|
|
Other
expense
|
$1,451
|
$152
|
$2,414
|
$491
|
|
Receivable factoring
banking fees
|
$384
|
$205
|
$765
|
$363
|
|
Transaction-related
costs
|
$90
|
$54
|
$61
|
$539
|
|
Recovery of income
taxes
|
($1,294)
|
($4,467)
|
($3,312)
|
($8,082)
|
|
Adjusted
EBITDA(2)
|
($2,919)
|
($5,654)
|
($5,791)
|
($9,370)
|
|
Total
revenues
|
$72,797
|
$99,928
|
$144,561
|
$198,764
|
|
Adjusted EBITDA
Margin (2)
|
(4.0 %)
|
(5.7 %)
|
(4.0 %)
|
(4.7 %)
|
(1) Includes depreciation and amortization reported
in cost of revenue and operating expenses for all periods.
(2) Adjusted EBITDA is a non-GAAP financial measure
while Adjusted EBITDA Margin is a non-GAAP ratio. Further details
on these measures are included in the "Key Metrics Definitions"
section of this press release.
BBTV Share, Adjusted Gross Profit, and Adjusted Gross
Margin
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
2023
|
2022
|
2023
|
2022
|
|
Revenue
|
$72,797
|
$99,928
|
$144,561
|
$198,764
|
|
Less: content creator
and third-party platform fees
|
($66,552)
|
($91,268)
|
($131,217)
|
($180,507)
|
|
BBTV Share
(A)
|
$6,245
|
$8,660
|
$13,344
|
$18,257
|
|
|
|
|
|
|
Gross Profit
(Loss)
|
($1,616)
|
$806
|
($2,411)
|
$2,497
|
|
Add: amortization
associated with intangible assets
acquired as part of the Business Combination
Transaction
|
$7,432
|
$7,460
|
$14,912
|
$14,945
|
|
Adjusted Gross
Profit (B)
|
$5,816
|
$8,266
|
$12,501
|
$17,442
|
|
|
|
|
|
|
Adjusted Gross
Margin (B/A)
|
93.1 %
|
95.5 %
|
93.7 %
|
95.5 %
|
BBTV Share and Adjusted Gross Profit are non-GAAP financial
measures while Adjusted Gross Margin is a non-GAAP ratio. Further
details on these measures are included in the "Key Metrics
Definitions" section of this press release.
Free Cash Flow
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
2023
|
2022
|
2023
|
2022
|
|
Cash flow from
(used in) operating activities
|
($3,894)
|
($6,361)
|
($14,738)
|
($14,365)
|
|
Purchase of property
and equipment
|
($9)
|
($61)
|
($12)
|
($246)
|
|
Purchase or
development of intangible assets
|
($335)
|
($757)
|
($737)
|
($1,416)
|
|
Free Cash
Flow
|
($4,238)
|
($7,179)
|
($15,487)
|
($16,027)
|
Free Cash Flow is a non-GAAP financial measure. Further details
on this measure is included in the "Key Metrics Definitions"
section of this press release
About BBTV
BBTV is a global media and technology company headquartered in
Vancouver, Canada. The Company's
mission is to help content creators become more successful. With
creators ranging from individuals to global media brands, BBTV
provides comprehensive, end-to-end Solutions to increase viewership
and drive revenue powered by its innovative technology, while
allowing creators to focus on their core competency – content
creation. In December 2022, BBTV had
the fourth most unique monthly viewers among digital platforms with
more than 600 million globally, who consumed more than 30 billion
minutes of video content [1]. (www.bbtv.com)
[1] Calculations and classifications made by BBTV based on data
from Comscore's "Top 12 Countries = December
2022 comScore Video Metrix Media Trend – Multi-Platform –
Top 100 Video Properties Report"; Top 12 countries represent ~50%
of world's digital population.
Links to SEDAR filings, conference call recordings and press
releases are available on the investor website at:
https://investors.bbtv.com/
Key Metrics Definitions
The information presented within this press release includes
certain financial measures such as non-GAAP financial measures,
non-GAAP ratios, and supplementary financial measures, as well as a
non-financial performance measure (collectively, "Key Metrics") to
assist investors in assessing the overall operating performance of
the Company. These measures are provided as additional information
to complement IFRS measures by providing further understanding of
our results of operations from management's perspective.
Accordingly, these measures should not be considered in isolation
nor as a substitute for analysis of our financial information
reported under IFRS. They are not standardized measures under IFRS
and do not have standardized meanings prescribed by IFRS, and might
not be comparable to similar financial measures disclosed by other
issuers. These Key Metrics are used to provide investors with
supplemental information on our operating performance and thus
highlight trends in our core business that may not otherwise be
apparent when relying solely on IFRS measures. We also believe that
securities analysts, investors and other interested parties
frequently use Key Metrics in the evaluation of issuers. Our
management also uses Key Metrics in order to facilitate operating
performance comparisons from period to period, to prepare annual
operating budgets and forecasts and to determine components of
management compensation.
The numbers for the Company's Key Metrics and related
information are calculated using external industry data sources
and/or internal company data. These measures may be different from
non-GAAP financial measures or ratios or other metrics used by
other companies and may not be comparable to similar meanings
prescribed by other companies, limiting their usefulness for
comparison purposes. Moreover, some of these adjustments or
measures are provided for period-over-period comparison purposes,
and investors should be cautioned that the effect of the
adjustments provided herein is not indicative of the actual effect
on the Company's operating results.
Non-GAAP Ratios contained in this press release are:
"Adjusted Gross Margin" means Adjusted Gross Profit divided by
BBTV Share; and
"Adjusted EBITDA Margin" means Adjusted EBITDA divided by
revenue.
"Gross Margin Excluding PPA Amortization" means Adjusted Gross
Profit divided by revenue.
Non-GAAP Financial Measures contained in this press release
are:
"Adjusted EBITDA" means net earnings or loss, as applicable,
before finance expenses, income tax expense (recovery),
amortization and depreciation, share-based compensation, unrealized
and realized gains or losses due to foreign exchange,
transaction-related costs, and certain other items as set out in
the reconciliation table;
"BBTV Share" means revenue less content creator and third-party
platform fees;
"Adjusted Gross Profit" means gross profit plus amortization
associated with intangible assets acquired as part of the Business
Combination Transaction;
"Free Cash Flow" means cash flows from (used in) operating
activities less purchases of property and equipment and purchase or
development of intangible assets;
See the financial tables above for a reconciliation of the
non-GAAP ratios and non-GAAP financial measures.
Supplementary Financial Measures
Supplementary Financial Measures contained in this press release
are:
"Advertising Revenue" means the revenue generated from
advertising sales from the Company's owned and licensed video on
demand content across digital platforms, rights management revenue
from advertising sales on video on demand content, and in-app
advertising on Mobile Gaming Apps.
"RPMs" or "Revenue per one thousand video Views" means the
Advertising Revenues for every thousand Views generated by the
Company's owned and licensed digital content. The Company does not
provide a reconciliation for RPMs as there are no directly
comparable IFRS measures for the components that make up RPMs.
"Gross Margin" means gross profit divided by revenue.
We monitor Advertising Revenue and RPMs to help us evaluate our
business, measure our performance, identify trends affecting our
business, formulate business plans and make strategic decisions.
These measures are also used to provide investors with supplemental
measures of our operating performance and thus highlight trends in
our core business that may not otherwise be apparent when relying
solely on IFRS measures. Unless the context otherwise requires, the
Company believes that readers should consider the applicable
metrics to be indicative of engagement and monetization trends that
are key factors that affect the Company's revenue. The Company may
or may not update these metrics based on the Company's
determination of applicability, circumstance, relevance or other
considerations.
Non-Financial Performance Measures
Views are one of BBTV's non-financial performance measures and
are defined as the number of views, in billions, of the Company's
owned and licensed digital video content on various platforms,
notably YouTube, for the stated period. The presentation of Views
is reliant on certain third-party industry data and therefore is
not comprehensive and may exclude views of the Company's content on
certain platforms or in geographies whereby such data sources are
unable to or do not track such information. Trends in Views affect
revenue and financial results by influencing the Company's volume
of salable media inventory, RPMs, as well as its product offerings,
expenses and capital expenditures.
While Views are reported using reasonable judgments and
estimates of the audience and its engagement with its content for
the applicable period of measurement, there are certain challenges
and limitations in measuring the usage of its content across its
audience. Such challenges and limitations may also affect the
Company's understanding of certain details of its business. For
example, the methodologies used to measure the Company's Views and
RPMs (see "Supplementary Financial Measures" above) may be
susceptible to algorithm, calculation or other technical or human
errors, and following an acquisition or strategic transaction,
certain data may be, among other things, integrated, analyzed and
reported differently by the Company than it was by the target or
the strategic partner. Moreover, the Company's or its data
provider's business intelligence tools may experience glitches or
fail on a particular data backup or upload, which could lead to
certain customer activity not being properly included in the
calculation of Views and RPMs. Although the Company typically
attempts to address and correct any such failures and inaccuracies
relatively quickly, its reported Views and RPMs are still
susceptible to the same and its estimations of such metrics may be
lower or higher than the actual numbers.
Forward Looking Statements:
This press release
contains "forward-looking information" and "forward-looking
statements" within the meaning of applicable securities laws
(collectively, "forward-looking information"). Forward-looking
information is not information about historical facts but instead
represents the Company's intentions, beliefs, plans, goals,
objectives and strategies regarding future events and results, and
includes certain financial outlooks. Financial outlooks are
provided to aid in understanding management's goals and
expectations regarding future financial matters, and, for all the
reasons set out below, may not be achieved. Such financial outlooks
may not be appropriate for other purposes. Forward-looking
information contained in this press release includes statements
that we signed three major contracts in the first half of the year,
which we expect will help us to continue growth in Plus Solutions
revenue; the discounted payout option that we've arranged
with RTL, combined with improvements in operating costs and upside
from our recent business development wins provide us with an
enhanced path to profitability; over time, it is expected that the
monetization of YouTube Shorts will increase to mirror those
of regular-length YouTube video; as YouTube Shorts RPMs track
higher, notwithstanding typical seasonality, overall RPMs are
expected to increase over time; with a large pipeline of mostly
global enterprise clients, Plus Solutions should continue to grow
as a percentage of total revenue and Adjusted Gross Profit; during
the quarter, the Company began deploying two major Content
Management contracts that have the potential to become among the
top five largest Content Management revenue streams; and Plus
Solutions continue to represent significant revenue growth
potential for the Company as well as viewership and valuable
incremental revenue streams for partners. Forward-looking
information is necessarily based on a number of estimates and
assumptions that the Company considered appropriate and reasonable
as of the date such information is given, including but not limited
to the assumptions that growth trends in views and RPMs overall
will improve and the Company's growth targets will not be adversely
affected in any material respect; its internal financial forecasts
and models, including its estimates of costs and revenue, are
accurate; the monetization of YouTube Shorts will improve RPMs,
views and revenue potential over time, with RPMs for YouTube Shorts
having similar RPM rates to long-form video content over time; the
Company will continue to acquire significant content management
clients resulting in the Company's Plus Solutions revenue
continuing to grow as expected; that BBTV will continue to acquire
new content partners of the same nature and type and at least at
the same rate or better than it has historically; the Company's
business will otherwise expand; the Company will continue to
implement cost reductions; our content providers and our strategic
and other partners will perform as contractually required; we will
be able to seamlessly enter into new markets and diversify to new
platforms; we will be able to increase our sales of advertising
inventory as planned; we will be able to obtain and maintain
financing on acceptable terms on a timely basis; our assumptions
regarding foreign exchange rates and other matters are correct; and
that there will be no changes in general industry, market and
economic conditions adverse to the Company. Forward-looking
information is subject to known and unknown risks, uncertainties,
and other factors, many of which are beyond the Company's control,
that may cause actual results, performance or achievements to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to the risk
that the Company's assumptions on which its forward-looking
information is based, including, without limitation, the Company's
assumptions regarding YouTube Shorts, RPMs and views for YouTube
Shorts and regarding RPMs generally, may not be accurate; the
effect of competition; that the Company has a history of losses and
negative cash flow; the Company may not become profitable as
anticipated by management or at all; the Company's need for
additional capital on acceptable terms, which is not assured; the
Company's significant reliance on its relationship with
YouTube; the impact of the continuing COVID-19 pandemic and of
economic uncertainty; the risks of potential claims of infringement
by the Company or its content providers of third party intellectual
property and other rights; changes in laws and regulations; future
market, consumption patterns and other trends may fail to meet or
exceed historical trends or current expectations; failure of
the Company to realize significant distribution on new
platforms or at all; as well as other factors discussed in the
Company's Final Long Form Prospectus dated October 22, 2020, its Annual Information Form
dated March 31, 2023 and in our
MD&A filed August 14, 2023 each
filed on sedar at www.sedarplus.ca and in the Company's other
filings with the Canadian securities regulatory authorities at
www.sedarplus.ca. The Company does not undertake any obligation to
update any forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law.
Contacts:
Media Relations
Mark
Funston
Head of Marketing and PR
778-288-4950
mfunston@bbtv.com
Investor Relations
ir@bbtv.com
Ron Shuttleworth
Partner
Oak Hill Financial Inc
(647)-500-7371
rshuttleworth@oakhillfinancial.ca
BBTV-F
View original content to download
multimedia:https://www.prnewswire.com/news-releases/bbtv-announces-q2-2023-financial-results-301900126.html
SOURCE BBTV Holdings Inc.