Revenue grew by 16% and quarterly gross
profit* increased by 17% compared to the previous year
quarter
VANCOUVER, BC, May 13, 2021 /CNW/ - BBTV Holdings Inc. (TSX:
BBTV) (OTCQX: BBTVF)("BBTV" or the "Company"), the leading business
in the creator economy, today announced financial results for Q1
fiscal 2021 ended on March 31, 2021.
In accordance with the recent initial public offering and
acquisition of RTL's share of BBTV, which occurred during the
fourth quarter ended December 31,
2020, Q1 2020 results are provided on a pro forma
basis. The pro forma basis includes the operations of
BroadbandTV Corp, the main operating entity and BBTV Holdings for
both Q1 2021 and Q1 2020. The statutory financial statements
include BBTV Holdings only, which does not include the main
BroadbandTV operating entity for Q1 2020, but does for Q1
2021. The Management Discussion and Analysis, along with
full financial statements are posted and available on SEDAR at
www.sedar.com. All dollar amounts are expressed in Canadian
currency and are prepared in accordance with International
Financial Reporting Standards (IFRS).
"Our first quarter performance showed solid progress over last
year," said Shahrzad Rafati,
Chairperson and CEO of BBTV. "We delivered 16% revenue growth in
Q1, which is seasonally the industry-wide lowest quarter. We remain
bullish on the next few quarters as more creators onboard, we grow
our Plus Solutions, and we execute on our M&A strategy".
Q1 2021 Financial Highlights
- Revenue for Q1 2021 was $106.5
million, a 16% increase over $91.8
million reported in Q1 2020.
- The revenue increase was led by an increase in both Views and
RPMs compared to the same period of prior year, which grew 4% and
12%, respectively.
- Gross Profit, excluding amortization associated with the
purchase price allocation (PPA) related to the initial public
offering and corresponding buy out of RTL, for Q1 2021 was
$9.6 million, a 17% increase in
comparison to $8.2 million reported
for the same quarter last year.
- Total BBTV Share of revenue, which is a non-IFRS measure, in Q1
2021 was $10.0 million a 14% increase
compared to $8.8 million reported for
Q1 2020.
- Adjusted Gross Margin, which is a non-IFRS measure, and is
Gross Profit divided by BBTV Share, was 96% for Q1 2021, compared
93% reported for Q1 2020.
- Gross Margin, excluding the PPA amortization, was 9.0% in Q1
2021 in comparison to 8.9% in Q1 2020.
- Net loss for the quarter was $9.1
million compared to a loss of $13.5
million in Q1 2020. The net loss included the amortization
associated with the purchase price allocation, or PPA, associated
with BBTV Holdings acquiring BroadbandTV Corp, in conjunction with
the buy out of RTL's share and the Company's IPO. Amortization
associated with the PPA in the amount of $5.8 million was recorded in cost of revenue for
Q1 2021 and $7.3 million for Q1 2020.
The PPA amortization is recorded in cost of revenue and is a
non-recurring transaction and non-cash.
- The loss per share was $0.44 for
Q1 2021 (based on 20.5 million of weighted average number of shares
outstanding).
- Adjusted EBITDA loss, which is a non-IFRS measure, was
$2.5 million for Q1 2021 compared to
a loss of $2.4 million reported for
Q1 2020.
- As at March 31, 2021, the Company
had cash and cash equivalents on hand of $11.3 million.
- Days Sales Outstanding for Q1 2021 was 34 days, while Days
Payable Outstanding was 78 days, and the favorable cash cycle was
44 days.
Q1 2021 Operational Highlights
In Q1 2021, BBTV announced:
- Strategic growth and expanded solutions with both Instagram and
TikTok to monetize creators across these platforms.
- Agreements with multiple new creators, adding nearly 750
million monthly views to the BBTV platform across multiple segments
including sports, gaming, lifestyle, and entertainment.
- New content distribution agreements on Roku and Amazon
Fire.
- Global expansion of BBTV's industry leading services to
India & Thailand.
- Cross-listing on OTCQX under the symbol BBTVF.
- Hiring VP of Corporate Development, Blake Corbet.
"Our scale and proven ability to make money for creators around
the world continues to attract some of the best partners around,"
Added Ms. Rafati. "Our new service offerings with TikTok and
Instagram creators will help them make more money with us.
With investments being made into growing our Plus Solution
revenue streams combined with global expansion, we anticipate
accelerated growth and expanding margins over the coming quarters.
We are just getting started."
Certain pro-forma consolidated unaudited financial statements,
which combine BBTV Corp. and BBTV Holdings, may be found in the
MD&A. In accordance with our recent initial public offering and
acquisition of RTL's share of BBTV, which occurred in the fourth
quarter ended December 31, 2020, we
are providing Q1 2020 results on a pro forma basis, which are
included in the MD&A. The pro forma basis includes the
operations of BroadbandTV Corp, the main operating entity, and BBTV
Holdings for both Q1 2021 and Q1 2020. The statutory
financial statements include BBTV Holdings only, which does not
include the main BroadbandTV operating entity for Q1 of 2020, but
does for Q1 2021.
Summary Table
BBTV Holdings Pro Forma Results of
Operations
For the period ending March 31, 2021
|
|
Three Months
Ended
March 31,
|
|
|
2021
$
|
2020
$
|
|
|
|
Q1
2021
Financial
Statements
|
Pro-Forma
Basis(1)
|
|
|
|
|
|
|
Revenue
|
|
|
$106,495
|
$91,759
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
|
|
|
Content creator and
other fees
|
|
|
$96,567
|
$83,284
|
|
Amortization
|
|
|
$6,149
|
$7,606
|
|
|
|
$102,716
|
$90,890
|
|
|
|
|
|
|
Gross profit
(loss)
|
|
|
$3,779
|
$869
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
Sales and
marketing
|
|
|
$7,288
|
$6,008
|
|
General and
administration
|
|
|
$4,230
|
$3,670
|
|
Research and
development
|
|
|
$1,059
|
$1,334
|
|
Share-based
compensation
|
|
|
$264
|
$112
|
|
Amortization and
depreciation
|
|
|
$1,867
|
$1,311
|
|
|
|
$14,708
|
$12,435
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
($10,929)
|
($11,566)
|
|
|
|
|
|
|
Foreign exchange gain
(loss)
|
|
|
$112
|
($3,979)
|
|
Interest
expense
|
|
|
($1,066)
|
($902)
|
|
Other income
(expense)
|
|
|
($44)
|
($31)
|
|
|
|
($998)
|
($4,912)
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
($11,927)
|
($16,478)
|
|
|
|
|
|
|
Recovery of
(provision for) income taxes
|
|
|
$2,876
|
$2,933
|
|
|
|
|
|
|
Loss
|
|
|
($9,051)
|
($13,545)
|
|
|
|
|
|
|
(1)
|
The prior period
figures are presented on Pro-Forma Basis to include BBTV Corp.
consolidated results as if the Business Combination Transaction had
occurred on January 1, 2019.
|
Non-IFRS Measures
The Company presents the following non-IFRS measures in the
MD&A, reconciliations of which to their nearest IFRS measures
are provided, below:
Adjusted EBITDA and Adjusted EBITDA Margin
|
|
Three Months Ended
March 31,
|
|
|
|
2021(1)
|
2020(2)
|
|
Net
loss
|
|
|
($9,051)
|
($214)
|
|
Pro-Forma Provisional
Adjustment
|
|
|
-
|
($13,331)
|
|
Net loss after
Pro-Forma Provisional Adjustment (if necessary)
|
|
|
($9,051)
|
($13,545)
|
|
Amortization and
depreciation(3)
|
|
|
$8,016
|
$8,917
|
|
Share-based
compensation
|
|
|
$264
|
$112
|
|
Unrealized and
realized foreign exchange
|
|
|
($112)
|
$3,979
|
|
Net interest
income/expense and other expense
|
|
|
$1,110
|
$933
|
|
Receivable factoring
banking fees
|
|
|
$143
|
$142
|
|
Provision for income
taxes
|
|
|
($2,876)
|
($2,933)
|
|
Adjusted
EBITDA
|
|
|
($2,506)
|
($2,395)
|
|
Total
revenues
|
|
|
$106,495
|
$91,759
|
|
Adjusted EBITDA
Margin
|
|
|
(2.4%)
|
(2.6%)
|
|
(1)
|
The current period
figures are based on the results from the Company's Q1 2021
Financial Statements
|
|
(2)
|
The prior period
figures are presented on Pro-Forma Basis to include BBTV Corp.
consolidated results as if the Business Combination Transaction had
occurred on January 1, 2019.
|
|
(3)
|
Includes depreciation
and amortization reported in cost of revenue and operating expenses
for all periods.
|
Adjusted EBITDA is defined as net earnings or loss, as
applicable, before finance expenses, income tax expense (recovery),
amortization and depreciation, share-based compensation, unrealized
and realized gains or losses due to foreign exchange,
transaction-related costs, and certain other items as set out in
the reconciliation table. Adjusted EBITDA Margin is defined as
Adjusted EBITDA divided by revenue.
BBTV Share and Adjusted Gross Margin
|
|
Three Months ended
March 31,
|
|
|
|
2021(1)
|
2020(2)
|
|
Revenue
|
|
|
$106,495
|
($194)
|
|
Pro-Forma Provisional
Adjustment
(if necessary)
|
|
|
-
|
$91,953
|
|
Revenue, after
adjustment (if necessary)
|
|
|
$106,495
|
$91,759
|
|
|
|
|
|
|
Less: content
creator and third-party platform fees
|
|
|
($96,474)
|
$-
|
|
Pro-Forma Provisional
Adjustment
(if necessary)
|
|
|
-
|
($82,920)
|
|
Less: content
creator and third-party platform fees, after adjustment (if
necessary)
|
|
|
($96,474)
|
($82,920)
|
|
|
|
|
|
|
BBTV
Share
|
|
|
$10,021
|
$8,839
|
|
|
|
|
|
|
Gross
Profit
|
|
|
$3,779
|
$869
|
|
Add: provisional
amortization associated with
intangible assets
acquired as part of the
Business Combination
Transaction
|
|
|
$5,841
|
$7,318
|
|
Adjusted Gross
Profit
|
|
|
$9,620
|
$8,187
|
|
|
|
|
|
|
Adjusted Gross
Margin
|
|
|
96.0%
|
92.6%
|
|
(1)
|
The current period
figures are based on the results from the Company's Q1 2021
Financial Statements
|
|
(2)
|
The prior period
figures are presented on Pro-Forma Basis to include BBTV Corp.
consolidated results as if the Business Combination Transaction had
occurred on January 1, 2019.
|
BBTV Share is defined as revenue less creator and third-party
platform fees while Adjusted Gross Margin is defined as Adjusted
Gross Profit divided by BBTV Share. Adjusted Gross Profit is
defined as gross profit plus amortization associated with
intangible assets acquired as part of the Business Combination
Transaction
The Company uses Adjusted EBITDA, Adjusted EBITDA Margin, BBTV
Share, Adjusted Gross Profit, and Adjusted Gross Margin to provide
readers with a supplemental measure of our operating performance
and thus highlight trends in our core business that may not
otherwise be apparent when relying solely on IFRS financial
measures. The Company believes that securities analysts, investors
and other interested parties frequently use non-IFRS measures in
the evaluation of performance. Management also believes BBTV Share,
Adjusted Gross Margin and Adjusted EBITDA are useful performance
measures as they provide information regarding the Company's
ongoing core operating activities, trends in underlying
performance, the preparation of annual operating budgets and is
used by management to assist in operating decisions and resource
allocations.
*Excluding amortization of assets recorded as part of the
purchase price allocation, or PPA, associated with BBTV Holdings
acquiring Broadband TV Corp, in conjunction with the buy out of
RTL's share and the Company's IPO. Amortization associated
with the PPA in the amount of $5.8
million was recorded in cost of revenue for Q1 2021 and
$7.3 million for Q1 2020. The PPA
amortization is a non-recurring transaction and non-cash item.
About BBTV
BBTV is a global media and technology company headquartered in
Vancouver, Canada. The company's
mission is to help content creators become more successful. With
creators ranging from individuals to global media brands, BBTV
provides a comprehensive, end-to-end solution to increase
viewership and drive revenue powered by its innovative technology,
while allowing creators to focus on their core competency – content
creation. In January 2021, BBTV had
the second most unique monthly viewers among digital platforms with
more than 600 million globally, who consumed more than 50 billion
minutes of video content, the most among media
companies1. (www.bbtv.com)
|
1
|
Comscore's "Top 12
Countries = January 2021 comScore Video Metrix Media Trend –
Multi-Platform – Top 100 Video Properties Report"; Top 12 countries
represent ~50% of world's digital population.
|
Forward Looking Statements
This press release contains "forward–looking information" and
"forward-looking statements" within the meaning of applicable
securities laws (collectively, "forward-looking information") which
reflects the Company's current expectations regarding future
events, including that the Company is especially bullish on the
next few quarters as more creators onboard, we grow our Plus
solutions, and we execute on our M&A strategy; that the Company
expects that its service offerings to TikTok and
Instagram creators will help these creators make more money
with the Company; that the Company anticipates accelerated growth
and expanding margins over the coming quarters ; and that the
Company's mission is to democratize content by leveraging its
proprietary technologies to drive viewership and monetization for
content creators of all sizes. Forward-looking information is
necessarily based on a number of estimates and assumptions that we
considered appropriate and reasonable as of the date such
information is given, including but not limited to our assumption
regarding continued growth, changes and trends in our industry or
the global economy, that our growth trends will continue in future,
that our service offerings to TikTok and Instagram creators,
and our Plus revenue streams will be successful, and the
performance of our services and technology. Forward-looking
information is subject to known and unknown risks, uncertainties,
and other factors, many of which are beyond the Company's control,
that may cause actual results, performance or achievements to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to the risk
that our assumptions on which our forward-looking information is
based may not be accurate, the effect of competition, that
historical or previous results are not necessarily indicative of
future results, as well as the factors discussed under "Risk
Factors" in the final prospectus of the Company dated October 22, 2020 filed on sedar at www.sedar.com
and in our other filings with the Canadian securities regulatory
authorities at www.sedar.com. The Company does not
undertake any obligation to update such forward–looking
information, whether as a result of new information, future events
or otherwise, except as expressly required by applicable
law.
Conference Call Details
Thursday May 13th, 2021, 2:15pm Pacific Time/5:15pm
Eastern Time.
Participant Information
Conference ID: 4192186
Participant Toll Free Dial-In Number: (844) 418-0102
Participant International Dial-In Number: (236) 714-3015
Please connect at least 15 minutes prior to the conference
call.
To coincide with the call, an Investor Highlights presentation
will available at:
https://investors.bbtv.com/events-and-presentations/default.aspx
Links to SEDAR filings, conference call recordings and press
releases are available on the investor website at:
https://investors.bbtv.com/
Telephonic Replay:
Encore Dial In #: (800) 585-8367 or
(416) 621-4642
Conference ID: 4192186
May 13, 2021 22:30 ET - May 20, 2021 23:59
ET
Contacts:
Media Relations
Dan
Gamble,
Head of PR & Corporate Communications,
778-873-0422
dgamble@bbtv.com
Investor Relations
ir@bbtv.com
Ron Shuttleworth
Partner
Oak Hill Financial Inc
(647)–500–7371
rshuttleworth@oakhillfinancial.ca
BBTV-F
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SOURCE BBTV Holdings Inc.