Total revenue grew by 24%, Gross Profit grew by 22% and Plus Solutions revenue grew by 65%.
Wednesday, August 11th 2021
Vancouver, B.C.: BBTV Holdings Inc. (TSX: BBTV) (OTCQX: BBTVF) (the “Company”), a media tech company that uses technology enabled solutions to help content creators become more successful, today announced financial results for Q2 fiscal 2021 ended on June 30, 2021. Due to the acquisition by the Company of BroadbandTV Corp. on October 28, 2020 (the “Business Combination Transaction”), which contributed less than three months of results of BroadbandTV Corp. to the results of operations of the Company for the prior year ended December 31, 2020, the Q2 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 Q2 2021 and Q2 2020. The statutory financial statements include BBTV Holdings only, which does not include the main BroadbandTV operating entity for Q2 2020, but does for Q2 2021. See “Pro Forma Basis” below for further information regarding this pro forma presentation.
The Management Discussion and Analysis (“MD&A”), 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 second quarter performance demonstrates our continued growth momentum,” said Shahrzad Rafati, Chairperson and CEO of BBTV. “We delivered 24% revenue growth in Q2, including a 65% increase in Plus Solutions revenue. We are pleased that our investments towards Plus Solution revenue growth is beginning to show results, and we are confident that momentum will continue. Our entire organization is focused on scaling towards profitability. Based on current growth trends, we continue to expect to be Adjusted EBITDA positive sometime next year. Our continued financial progress is underpinned by our commitment and passion to help and support creators with our industry leading platform. We are grateful to have an opportunity to power the creator economy and serve thousands of creative and talented creators.”
Q2 2021 Financial Highlights:
Q2 2021 Operational Highlights:
Subsequent to quarter-end, BBTV announced:
“Our scale and proven ability to make money for creators around the world continues to attract some of the best creators around,” Added Ms. Rafati. “We are one of YouTube’s largest enterprise video partners already and we are at the early stages of growth with Instagram, Facebook and Tik Tok. With our Plus Solution revenue streams both expanding and gaining traction, we are excited for accelerated growth and expanding margins over the coming quarters. We are on a mission to power the creator economy and are just getting started.”
Adjusted EBITDA and Adjusted EBITDA Margin
BBTV Share and Adjusted Gross Margin
Pro Forma Income Statement
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 comprehensive, end-to-end Solutions 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)
 Calculations and classifications made by BBTV based on data from 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.
Pro Forma Basis
The pro forma information contained herein includes BroadbandTV Corp.’s financial results for comparative periods in 2020 as if the Business Combination Transaction had occurred on January 1, 2019 as well as provisional adjustments for the effects of acquisition accounting, but does not include adjustments for costs related to integration activities, cost savings or synergies that might be achieved by the combined businesses. The sources of these pro-forma results are the Q2 2021 Financial Statements and Annual Financial Statements combined with the internal, unaudited financial information of the acquired business for the same periods. These pro-forma financial measures are not specified, defined or determined under IFRS accounting rules. Pro-forma amounts to be presented are not necessarily indicative of what the Company’s results would have been had BBTV Holdings effected the Business Combination Transaction on January 1, 2019, nor will the historical pro-forma amounts necessarily be indicative of future results. See also “Non-IFRS Measures and Key Metrics” below for further information regarding the Company’s non-IFRS measures.
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”). Forward-looking information is not information about historical facts but instead represents the Company’s intentions, beliefs, plans, goals, objectives and strategies regarding future events and results, and includes certain financial outlooks. Financial outlooks, in particular, are provided to aid in understanding management’s goals and expectations regarding future financial matters, and, for all the reasons set out below, may not be achieved. Such financial outlooks may not be appropriate for other purposes. Forward-looking information contained in this press release includes statements that the Company is confident that its momentum of Plus Solutions revenue growth will continue, and that the Company continues to expect to be Adjusted EBITDA positive sometime next year; that Adjusted Gross Margin should remain stable and greater than 90% for the foreseeable future; that the Company’s Plus Solutions should help contribute to margin expansion further in future quarters, particularly going into 2022; that with continued investment in its Base and Plus Solutions businesses, the Company estimates that it will reach Adjusted EBITDA profitability by fiscal year 2022; that the Company has added Non-Fungible Tokens (NFTs) as a new Plus Solution to generate a new revenue stream; and that with its Plus Solution revenue streams both expanding and gaining traction, the Company is excited for accelerated growth and expanding margins over the coming quarters. Forward-looking information is necessarily based on a number of estimates and assumptions that the Company considered appropriate and reasonable as of the date such information is given, including but not limited to the Company’s assumptions that its current growth plans and trends will not change in any material respect which would affect its forward-looking information; that its estimates of costs and revenue for future periods are accurate; that its assumptions regarding continued growth, changes and trends in the Company’s industry and the global economy will be met; that the Company’s NFT division will be successful; that the Company’s Plus Solutions will continue to show greater margins than its Base Solutions; that the Company’s churn will continue to remain low; that the Company will continue to contract with new content creators and to continue to receive increasing Views; the timely receipt of required regulatory approvals and strategic partner support; and the absence of new laws, regulations, rules or policies of governments, platforms and other strategic partners, that may negatively impact the business of BBTV; as well as the Company’s assumptions regarding foreign exchange rates. 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 the Company’s assumptions on which its forward-looking information is based may not be accurate; the effect of competition; that the Company has a history of losses and negative cash flow; that the Company’s agreements with platforms, creators or others may terminate early or not be renewed either on similar terms or at all; that the Company’s or its creators’ NFTs may not realize significant revenue or at all; that the Company’s Plus Solutions may not continue to be attractive to creators and may not continue to gain traction; the regulatory environment and in particular, the fact that NFTs are a relatively recent concept and new regulations may be enacted with which the Company may not be able to comply, and government regulation of the Internet as well as privacy regulation which are both evolving and unfavourable developments could have an adverse impact on the Company’s operating results; litigation risk; intellectual property risks; the Company’s need for timely performance by its creators and strategic partners; the Company’s significant reliance on its relationship with one digital platform; and the impact of the continuing COVID-19 pandemic; as well as the factors discussed under “Risk Factors” in the final prospectus of the Company dated October 22, 2020, and in its Annual Information Form dated March 28, 2021 filed on sedar at www.sedar.com and in the Company’s other filings with the Canadian securities regulatory authorities at www.sedar.com. The Company does not undertake any obligation to update any forward–looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Links to SEDAR filings, conference call recordings and press releases are available on the investor website at: https://investors.bbtv.com/
Non-IFRS Measures and Key Metrics
This press release makes reference to certain financial and other measures commonly used by financial analysts in evaluating the financial performance of companies that are not presented in accordance with IFRS. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. This press release also contains information regarding certain key metrics, such as Views and RPMs, that are considered non-IFRS measures that help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. Refer to the Company’s MD&A presented as at August 11, 2021 under the heading “Non-IFRS Measures and Key Metrics” for more details, as well as a discussion on the limitations of these Non-IFRS Measures and Key Metrics.
“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 above.
“Adjusted Gross Margin” is defined as Adjusted Gross Profit divided by BBTV Share.
“Adjusted Gross Profit” is defined as gross profit plus provisional amortization associated with intangible assets acquired as part of the Business Combination Transaction.
“Advertising Revenue” is defined as the revenue generated from advertising sales from the Company’s owned and licensed video on demand content across digital platforms, rights management revenue from advertising sales on video on demand content, and Mobile Gaming Apps.
“BBTV Share” is defined as revenue less content creator and third-party platform fees.
“RPMs” or revenue per one thousand Views is defined as the Advertising Revenues for every 1,000 Views generated by the Company’s owned and licensed digital content. The Company does not provide a reconciliation for RPMs as there are no directly comparable IFRS measures for the components that make up RPMs.
“Views” are defined as the number of views, in billions, of the Company’s owned and licensed digital video content on various platforms, notably YouTube, for the stated period. The presentation of Views is reliant on certain third-party industry data and therefore is not comprehensive and may exclude views of the Company’s content on certain platforms or in geographies whereby such data sources are unable to or do not track such information. Trends in Views affect revenue and financial results by influencing the Company’s volume of salable media inventory, RPMs, as well as its product offerings, expenses and capital expenditures.
See the financial tables above for a reconciliation of the non-IFRS financial measures.
Head of PR & Corporate Communications
Oak Hill Financial Inc