Increasing revenue in the Advertising Division and reduced operating expenses in Q3, produce positive results in the current quarter over the previous quarter.
TORONTO, CANADA November 27, 2018 – YANGAROO Inc. (TSX-V: YOO, OTCBB: YOOIF), the leading secure digital media management and distribution company, today announced its results for the third quarter ended September 30, 2018.
Revenue for Q3 was $1,735,291, 12% lower than the same period in 2017 and 3% lower than Q2 2018, with net income of $84,846 and normalized EBITDA of $204,301. Revenue for the first 9 months of 2018 was $5,482,305, 5% lower than the first 9 months of 2017, with net income of $150,989 and normalized EBITDA of $432,232. The decreases from the prior year, both quarterly and year-to-date, were due to reduced campaign spending by clients and in some cases loss of business by advertising clients.
Advertising revenue of $1,036,861 in Q3 has dropped 19% over the same period in 2017 and increased 1% over the previous quarter. The year-to-date revenue for the first 9 months was $3,291,408, which has dropped 7% over the same period in 2017, for reasons discussed above. The slight increase from the prior period was due to sales starting to rise in the quarter primarily due to seasonal increases in order flow.
Entertainment Division’s Q3 revenue was $698,430, up 0.5% over 2017 and down 10% over the previous quarter. The revenue for the first 9 months of 2018 was $2,190,897, 1% lower than the same period in 2017. The increase from Q3 2017 was mainly due to increase of licensing revenue and music audio delivery revenue; net of a decrease in the awards management revenue as a result of the change in revenue recognition standards in the current period. The decrease in revenue from Q2 2018 was mainly due to seasonal changes in the volume of video deliveries and timing of revenue recognition from individual awards shows. This decrease was net of an increase in membership subscription fees. The slight decrease of revenue for the first 9 months of 2018 was mainly a result of a decline in the volume of membership subscription and music video deliveries, offset by increases in music audio delivery and licensing revenue.
“As stated last quarter, despite lower revenue year to date, business development efforts are progressing well,” said Gary Moss, President & CEO of YANGAROO. “I am pleased to report that the Company expects that new customers signed in the second half of this year and who are coming on-line in the fourth quarter, will contribute annual run-rate revenue growth in the Advertising division, of at least 15% in 2019. The Company also expects Advertising division revenue to increase sequentially in Q4 from Q3 due to the seasonal strengthening of order flow and business from new customers. Business development efforts continue aggressively, and we anticipate adding to this new business over the coming months. The Company continues to carefully control costs in line with revenue.”
Total operating expense was $1,600,203 for the quarter ended September 30, 2018, 23% lower than the previous year and 13% lower than the previous quarter. The year-to-date operating expenses was $5,347,539, 4% lower than the same period in 2017. The decreases for all the periods were primarily due to one-time restructuring costs incurred in Q3 2017 and the adjustment to the bonus accrual in Q3 2018. The decreases were offset by higher value of stock options granted and salary adjustments in the current year. The Company has retained a net income of $84,846 in the current quarter, compared to a net loss of $215,711 in the same quarter of last year; and retained a net income of $150,989 in the first 9 months of 2018, compared to a net loss of $11,265 in the same period of last year. Excluding the impact of non-cash and non-operating costs, the normalized EBITDA was $204,301 in Q3 2018 and $432,232 for the first 9 months of 2018.
Summary of operating results for the periods ended September 30th:
|$CDN||Nine Months||Third Quarter|
|Net Income (loss) for the period||150,989||(11,265)||84,846||(215,711)|
|Diluted income (loss) per share||0.00||(0.00)||0.00||(0.00)|
|Basic income (loss) per share||0.00||(0.00)||0.00||(0.00)|
Please note that all currency in this press release is denoted in Canadian dollars.
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.
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