In the fiscal 2019 period ending September 30, the company’s net loss of $3.6 million, or 9 cents per share, marked an improvement from the year-earlier loss of 60 cents a share.
The top line reflected the strategic change of direction by the Chinese-owned company. Total revenue of $13.7 million fell 19% from the same period in fiscal 2018 due to an expected downturn in cinema equipment and services transactions. Revenue from the company’s OTT channels business, whose portfolio of seven networks targets several distinct niches, jumped 23%.
In 2017, Cinedigm sold most of its equity to Hong Kong investment outfit Bison Holding Co. Bison’s control has opened up business opportunities for Cinedigm, CEO Chris McGurk said. The company recently formed an exclusive partnership with Chinese streaming channel Youku to distribute 30 original feature films to all platforms in North America.
“Our interactions in the China market reinforce our view of the massive opportunity for the flow of movies, TV and other digital programming into and out of China,” McGurk said in the earnings release. “The partnerships we are establishing with high-quality entertainment partners are opening a number of gateways for the creation and acquisition of additional revenue sources.”