TORONTO, Aug. 28, 2018 (GLOBE NEWSWIRE) -- YANGAROO Inc. (TSX-V: YOO, OTCBB: YOOIF), the leading secure digital media management and distribution company, today announced its results for the second quarter ended June 30, 2018.
Revenue for Q2 was $1,797,924, 11% lower than the same period in 2017 and 8% lower than Q1 2018, with net loss of $18,828 and normalized EBITDA of $48,365. Revenue for the first half of 2018 was $3,747,014, 1% lower than the first half of 2017 with net income of $66,143 and normalized EBITDA of $227,931.
Advertising revenue of $1,025,092 in Q2 has dropped 16% over the same period in 2017 and dropped 17% over the previous quarter. The year-to-date revenue for the first 2 quarters was $2,254,547, which remained flat compared to the same 2 quarters in 2017. The decrease in Q2 was mainly due to inconsistent timing of campaign spending by a major client, as evidenced by higher revenues from the client in the previous quarter.
Entertainment Division’s Q2 revenue was $772,832, down 4% over 2017 and up 7% over the previous quarter. The revenue of the first half of 2018 was $1,492,467, 2% lower than the same period in 2017. The change in revenue recognition standards in 2018 resulted in lower awards management revenue in the current quarter compared to last year, but is a timing change only. However, the increase in volume of music deliveries in the current quarter brought a positive change compared to previous quarter. The drop of revenue for the first half of 2018 was mainly a result of the general decline in the volume of subscription and music video deliveries.
“The flat revenue year to date, both consolidated and in the Advertising Division, does not yet reflect the business development efforts outlined last quarter,” said Gary Moss, President and CEO of YANGAROO. “YANGAROO continues to develop its Advertising Division sales force and opportunity pipeline. The Company recently added ad sales representatives in the Los Angeles and Miami markets and they are already contributing to sales opportunities. The Advertising Division pipeline continues to grow and mature and the first significant new customers are completing their testing and onboarding processes. The Company expects new customer business to start making a contribution to revenue in the latter part of 2018. Until revenue growth accelerates, the Company will continue to carefully control costs.”
Total operating expense was $1,846,239 for the quarter ended June 30, 2018, 3% higher than the previous year and 3% lower than the previous quarter. The year-to-date operating expenses was $3,747,336, 8% higher than the same period in 2017. The increases for both the current quarter and the year-to-date were primarily due to higher value of stock options granted, salary adjustments and bonus accrual. The decrease over previous quarter was a result of lower stock option expenses in the current quarter. The Company has incurred a net loss of $18,828 in the current quarter, compared to a net income of $171,597 in the same quarter of last year; and retained a net income of $66,143 in the first half of 2018, compared to $204,446 in the same period of last year. Excluding the impact of non-cash and non-operating costs, the second quarter of 2018 had positive normalized EBITDA of $48,365 and $227,931 for the first half of 2018.
Summary of operating results for the periods ended June 30th:
| $CDN | Six Months | Second Quarter | |||
| 2018 | 2017 | 2018 | 2017 | ||
| Revenue | 3,747,014 | 3,766,797 | 1,797,924 | 2,026,731 | |
| EBITDA | 156,099 | 292,354 | 25,033 | 218,165 | |
| Normalized EBITDA | 227,931 | 422,465 | 48,365 | 301,952 | |
| Net income (loss) for the period | 66,143 | 204,446 | (18,828 | ) | 171,597 |
| Basic income (loss) per share | 0.001 | 0.003 | (0.000 | ) | 0.003 |
| Diluted income (loss) per share | 0.001 | 0.003 | (0.000 | ) | 0.003 |
Please note that all currency in this press release is denoted in Canadian dollars.
The full text of the financial statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com.
About YANGAROO:
YANGAROO is a company dedicated to digital media management. YANGAROO’s patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud-based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients. The YANGAROO Awards platform is now the industry standard and powers most of North America’s major awards shows.
YANGAROO has offices in Toronto, New York, and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF. For further information, please contact Gary Moss at 416-534-0607 ext.111 or visit www.yangaroo.com.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
Cautionary Note Regarding Forward-looking Statements
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.
Forward looking statements are subject to both known and unknown risks, uncertainties and other factors, many of which are beyond the control of YANGAROO, that may cause the actual results, level of activity, performance or achievements of YANGAROO to be materially different from those expressed or implied by such forward looking statements, including but not limited to: the use of proceeds of the offering, receipt of all necessary approvals of the offering, general business, economic, competitive, political and social uncertainties; negotiation uncertainties and other risks of the technology industry. Although YANGAROO has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause YANGAROO’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Any forward-looking statements are made as of the date hereof and, except as required by law, neither YANGAROO assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.