Continuing its long-term pivot away from cinema equipment and toward streaming, Cinedigm posted third-quarter results showing several encouraging signs, even if some red ink continues to flow.
Total revenue of $14.6 million fell 21% from the year-ago quarter, largely due to a 37% slide in the company’s legacy equipment business. The net loss in the period came to $2.7 million, a 44% improvement over losses in the same quarter of 2017.
Adjusted EBITDA came in at minus-$3.3 million in the quarter ending December 31, far narrower than the $5.9 million net loss in the 2017 period.
Direct operating expenses declined 18% in the quarter, to $5.2 million from $6.4 million, due to lower content advance amortization in the Content & Entertainment business unit.
Cinedigm, which was taken over by Hong Kong investment company Bison Capital in 2017, has announced a series of acquisitions and strategic moves in recent months. It runs a portfolio of streaming channels such as CONtv and the Dove Channel, reaching an estimated 2.4 million monthly active ad-supported viewers and 109,000 subscribers. It offers about 12,000 hours of film, television and live entertainment across North America and is expanding into Chinese-language streaming fare via OTT brand Bambu.
“We continue to rapidly increase our ad-supported user base across a growing number of linear and ad-supported video on demand platforms, a key measurement of the progress we are making to position Cinedigm as an integral player in the OTT space,” chairman and CEO Chris McGurk said in the company’s earnings release. “We remain focused on simultaneously growing our user base, launching new channels and investing in technology to monetize our existing assets, expand our addressable market and drive revenue growth.”