November 20, 2020
Cinedigm reported a $26.5 million loss for the second quarter ended Sept. 30. That compared to a loss of $3 million during the previous-year period. The Los Angeles-based home entertainment distributor said revenue came in at just $7.1 million, down about 31% from revenue of $10.2 million last year.
On the positive side, Cinedigm said transactional VOD revenue increased 27% year-over-year, with ad-supported VOD streaming revenue up 44% over revenue in the first quarter of the fiscal year and 45% over the comparable quarter in 2019.
Streaming and digital content distribution’s adjusted pre-tax earnings increased 3% in the quarter versus the three-month period ending Sept. 30, 2019 and increased by $2.3 million, or 72%, from the six-month period last year.
Cinedigm said it reduced total debt by $20.9 million, or 40%, from the prior year, including conversion of $15 million of convertible notes to equity.
The distributor Nov. 20 announced the launch of female-focused streaming linear channel MyTime Movie Network on The Roku Channel. During Q2, Cinedigm launched “hundreds of movies, TV episodes and three streaming channels” on NBCUniversal’s Peacock digital streaming platform; announced partnership with Fantawild, China’s largest theme park operator and producer of children’s animation in Asia, to launch a new global streaming service and distribute Fantawild’s animated content outside of China.
Cinedigm is majority-owned by China’s Bison Capital, a Hong Kong-based investment firm.
Other quarterly highlights included a partnership with Bloody Disgusting to launch a new horror streaming network that premiered for the Halloween season. The company also announced a partnership with TwentyOne14 Media to launch a new, urban multi-cultural entertainment and lifestyle network. Cinedigm also partnered with Rad to distribute Cinedigm’s portfolio of streaming channels. Rad is a provider of streaming content to the gaming ecosystem, where it claims to reach more 110 million Sony PlayStation consoles and other streaming devices, including Android TVs.
“We made strong progress in this seasonally slow quarter as streaming revenue continued to accelerate behind additional channel launches, platform/device expansion and enhanced digital sales, particularly TVOD,” CEO Chris McGurk said in a statement.
The market might not agree. Cinedigm shares are trading at 59 cents per share, which is below Nasdaq’s $1-per-share minimum.