Roku May 6 reported it grew first-quarter (ended March 31) active accounts 35% year-over-year to a record 53.6 million, from 39.8 million accounts, driven by sales of players and Roku TV models in both the U.S. and international markets. Roku users streamed a record 18.3 billion hours, an increase of 49% year-over-year from 12.3 million. Prior to lapping COVID-19 stay-at-home orders in mid-March, both active account and streaming hour year-over-year growth rates were trending ahead of those in Q4 2020.
On The Roku Channel, the streaming media device manufacturer drove another quarter of record growth, reaching U.S. households with an estimated 70 million people. Account reach and streaming hours on the AVOD platform more than doubled year-over-year — a growth rate that is over twice as fast as the overall Roku platform.
“Our exceptional performance in Q1 demonstrates how our business model serves consumers, content owners, and advertisers alike in the TV ecosystem,” founder/CEO Anthony Wood and CFO Steve Louden wrote in the shareholder letter. “Though there will be difficult COVID-19-related comparisons in 2021, we believe that the shift to streaming is inevitable. It will be global and will transform the way content is distributed and monetized.”
The pandemic continues to impact entertainment distributors as evidenced by Hasbro’s April 27 disclosure that it saw film and TV show revenue decline 37% to $166.4 million in the first quarter (ended March 28). The segment, which includes the acquisition of Canadian-based Entertainment One (eOne), reported revenue of $264 million in the previous-year period.
Overall movie, TV and entertainment revenue fell 34% to $194.3 million, from $292.5 million a year earlier.
Beginning with the first quarter, Hasbro realigned its financial reporting segments and business units, in order to align its segment financial reporting more closely with its current business structure — and ongoing effects of the pandemic.
The new “entertainment” segment saw revenue decline 32% to $218.7 million, from $322.5 million. Operating income turned profitable at $17 million compared with a loss of $64.3 million in the previous-year period. Much of that loss was attributed to costs associated with the $4 billion acquisition of eOne.
Hasbro said entertainment revenue declined due to expected difficult comparisons in the TV and film business from the pre-pandemic ecosystem. The theatrical business continues to be impacted by COVID-related theater shutdowns, whereas in Q1 2020 theaters were open for most of the quarter.
The company said scripted TV show distribution is expected to increase later in the current year and Hasbro is targeting returning to 2019 levels of revenue for the full-year 2021 in the TV and Film business. Adjusted operating profit in movies and TV show production declined on the lower revenue, partially offset by reduced advertising and promotional spend due to the lack of theatrical activity this year versus last.
“Our first quarter started the year well,” CFO Deborah Thomas said in a statement.
AMC Entertainment, parent of nation’s largest movie exhibitor AMC Theatres, June 3 disclosed it expects upwards of a $2.4 billion loss in the first quarter, ended March 31. That compares with a loss of $130 million during the previous-year period.
It projects revenue of $941.5 million, which is down 22% from revenue of $1.2 billion during the previous-year period. The company reports Q1 results June 9.
More importantly, AMC said that with most of its screens still shuttered due to the pandemic, “We are generating effectively no revenue,” which the chain said could raise “substantial doubt” about remaining in business.
“Even if government operating restrictions are lifted in certain jurisdictions, distributors may delay the release of new films until such time that operating restrictions are eased more broadly domestically and internationally,” AMC said in a statement.
The preliminary results are unaudited, subject to completion of the company’s quarterly financial reporting process, based on information known by management as of the date of this press release and do not represent a comprehensive statement of AMC’s financial results for the three months ended March 31, 2020.
The exhibitor with 11,000 screens globally has been idled since mid March since the coronavirus pandemic spread. AMC said it expects first-quarter 2020 adjusted free cash flow to be ($220.0) million and free cash flow to be ($275.7) million, compared with ($49.8) million and ($113.4) million last year, respectively.