Canadian company posts first earnings since going public and talks up ’unique opportunity’ for deal-making amid ’challenging industry conditions’
Canada’s Blue Ant Media has posted a 7% year-on-year rise in Q3 revenues, as chief exec Michael MacMillan reiterated the “dry powder” available to the company for M&A.
The results are the first since Blue Ant completed its reverse takeover of fellow Candian firm Boat Rocker Media earlier this month, in a deal that handed it Insight Productions, Jam Filled Entertainment, and Proper Television.
Its Q3 results, which run to 31 May, do not include those three companies but showed year-on-year revenue rising from C$51.8m (£27.7m) to C$55.7m, with adjusted EBITDA up almost a third from C$11.1m to C$14.6m.
Q3 Global Channels and Streaming revenues soared more than 60% from C$13m to C$21.4m, while earnings increased from C$3.3m to C$5.3m. The Canadian Media segment saw Q3 revenues fall from C23.5m to C$22.2m, and adjusted EBITDA fall from C$9m to C$8.6m, which Blue Ant blamed on a soft TV ad market.
Production and distribution revenue also fell in Q3, down from C$17.6m to C$15.1m, but profits were up year-on-year from C$1.3m to C$2.1m.
Blue Ant said revenue was down because “several productions” had not yet received anticipated greenlights, but international distribution had helped to offset to the effect, along with reduced expenses.
Overall revenues for the nine months to 31 May were down from C$142.2m to C$140.2m. Contributions from its Canadian Media unit were down 11% to C$50.3m while Production and Distribution fell 25% to C$35.6m, but Global Channels and Streaming revenues soared 43% to C$59.9m.
Losses in Q3 from continuing operations stood at C$11.2m, including a C$4.2m charge related to the reverse takeover, an C$8.5m charge related to share-based compensation, and an C$8.3m impairment charge.
Blue Ant chief exec, Michael MacMillan, described the results as “solid” but also referenced the soft TV market.
“Our global focus on growth and our interconnected streaming, production, and distribution operations have provided us stability this year despite ad market softness, cord cutting, and muted greenlights from global commissioners,” he said.
MacMillan also reiterated comments made to Broadcast International earlier this year, when he outlined his plan to drive “significant” growth following its move to go public.
“Our recently completed reverse takeover has further increased Blue Ant’s dry powder, which will enable us to invest in key areas to accelerate growth, both organically and through acquisitions, while enhancing the scale and diversity of our studio. The result is that the current challenging industry conditions present a unique opportunity for us to pursue significant content and business acquisitions at attractive valuations.”
Blue Ant’s shares, which are traded on the Toronto Stock Exchange, stood at C$8.50 a piece, valuing the company at C$188m.
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