Revenue grew by 16% and quarterly gross profit* increased by 17% compared to the previous year quarter.
Thursday, May 13th 2021
Vancouver, B.C.: 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
Q1 2021 Operational Highlights
In Q1 2021, BBTV announced:
“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.
BBTV Holdings Pro Forma Results of Operations
For the period ending March 31, 2021
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
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
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.
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 companies . (www.bbtv.com)
 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.
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.
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/
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
Head of PR & Corporate Communications,
Oak Hill Financial Inc