Cinedigm Ups Q2 Home Entertainment Revenue 30%9 Nov, 2015 By: Erik Gruenwedel
Cinedigm Entertainment Group Nov. 9 reported a 30% ($2.7 million) increase in second-quarter (ended Sept. 30) content and entertainment revenue to $11.7 million. Year-to-date content and entertainment revenue are up 29% ($2.63 million) from the prior year.
CEG, which is a unit of Cinedigm Corp., includes packaged media and digital sales. Revenue increased due in part to the good performance of key releases and significantly fewer product returns compared with the same period in the prior year.
"We are pleased that net retail sales of physical products and digital sales performed well for us during this seasonally slow quarter," CFO Jeffrey Edell said in a statement. "Looking forward, our focus is on generating new business, maintaining sell-in and managing returns."
Indeed, Cinedigm has nearly 1.4 million apps installed across three over-the-top video channels, including CONtv and Dove Channel. The former has nearly 100,000 registered users and the latter 36,000 users. Cinedigm also operates Docurama, which it plans to incorporate as a subscription streaming platform going forward.
Continued investment in OTT video contributed to Cinedigm reporting a net loss of $22.4 million on revenue of $27.7 million, compared with a net loss of $7.4 million on revenue of $23.7 million during the previous-year period. The increased loss includes an $18 million goodwill impairment charge, legal and other professional fees, primarily related to activist shareholder proposals, and $2.3 million initial recovery payment related to the settlement of the Gaiam Vivendi Entertainment litigation, net of related expenses recorded in the period.
Despite the hiked loss, CEO Chris McGurk remained upbeat on the company’s OTT focus.
"We are very pleased with the successful launch and early consumer adoption of the Dove Channel, which further accelerates the momentum of our OTT business," CEO Chris McGurk said in a statement.