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Cinedigm Widens Q1 Loss, Looking to Close Chinese Investment

14 Aug, 2017 By: Erik Gruenwedel

Home entertainment distributor Cinedigm Aug. 14 reported a first-quarter (ended June 30) net loss of $5.2 million, up about 13% from a loss of $4.6 million during the previous-year period. Revenue dropped nearly 33% to $15.2 million, from $22.4 million a year ago.

Citing seasonal sluggishness in retail channels, coupled with ongoing investment in over-the-top video distribution, CFO Jeffrey Edell said pre-tax earnings in content entertainment was a negative $3.2 million on revenue of $5.5 million.

“[This] is an improvement of over $700,000 from the prior quarter, or 18% better,” Edell said on the fiscal call.

The company ended the period with 850,000 combined subscribers to Dove Channel, Docurama and CONtv.

Separately, the distributor is upbeat on the Aug. 15 packaged-media release of Hickok, a western starring Luke Hemsworth, Kris Kristofferson and Bruce Dern.

“Not only have we already doubled our digital forecast on Hickok, but several TV series are also performing very well for us in digital, including Hallmark's When Calls the Heart, Good Witch: Season 3 and Chesapeake Shores: Season 1,” CEO Chris McGurk said.

Finally, Cinedigm will hold a special shareholder meeting Aug. 31 to discuss the previously-announced $30 million investment from a Chinese media company. If approved by shareholders, Bison Capital would become majority owner of Cinedigm.

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