Cinedigm Corp (NASDAQ: CIDM) reported a first-quarter FY23 consolidated revenue decline of 9.5% year-on-year to $13.59 million. The revenue decrease was driven by a reduction in legacy Digital Cinema equipment sales, partially offset by Streaming revenue growth. Excluding Digital Cinema results, revenues increased by 38% Y/Y.
Q1 net loss was $6.1 million, compared to a net income of $5.1 million in 1Q22, driven by a reduction in legacy Digital Cinema equipment sales and a non-operating charge. Loss per share was $(0.03) versus earnings per share of $0.03 a year ago.
Total streaming revenue increased 98% Y/Y to $8.1 million, driven by an increase of 131% in ad-supported revenue and a 43% increase in subscription revenue. Content and Entertainment revenue of $12.2 million grew by 38% Y/Y.
Total streaming minutes in the quarter rose to ~2.31 billion, up 68.7% Y/Y. Cinedigm's total ad-supported streaming audience increased to ~89.6 million monthly viewers, up 298% Y/Y.
Adjusted EBITDA loss was $(2.36) million, compared to a profit of $22 thousand in 1Q22.
"Besides our 30-channel streaming portfolio, widely distributed on every major platform and with access to over 1.1 billion global streaming devices, we now control 46,000 film and television titles, making it one of the largest modern streaming libraries in the world, and fully own one of the industry-best streaming and content distribution platforms in Matchpoint," commented Chris McGurk, Chairman, and CEO of Cinedigm.
"Along with new partner expansion, we expect these initiatives will generate annual revenues of over $50 million at steady state. In addition, we are streamlining our cost structure as we reap the synergies and scale benefits from recently acquired assets. We expect to generate at least $7.5 million in annual cost savings and achieve our goal of long-term sustainable profitability this year," added McGurk.
Outlook reaffirmed: Cinedigm reiterated a 50% annual revenue growth target in streaming, growing annual revenue to $150 million through both organic and acquired revenue and expanding the content library to 75,000 titles in the next 2 - 4 years.
Price Action: CIDM shares are trading higher by 2.23% at $0.78 in the after hours session on the last check Monday.
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