Cinedigm Loses $11 Million in Fiscal Quarter

cinedigm LOGO

Cinedigm reported $11 million in losses during its most recent financial quarter, as revenue fell 12% to $27.6 million.

The poor results come as the digital cinema company is struggling to transform itself into a new-media player and is busy launching over-the-top channels that cater to faith audiences, fanboys and documentary lovers. During an earnings call with investors, CEO Chris McGurk stressed that the plunge into digital video was essential to the company’s future.

“We believe as our OTT channels scale, we can deliver higher growth,” he said.

Revenue in the year-ago period slipped from $31.7 million, and losses for that quarter were $465,000. Cinedigm announced that its board had approved a $5 million stock buyback. The results did beat consensus analysts’ estimate both in terms of sales and EBITDA.

The company announced that there had been 1 million app downloads across its three digital channels, a sign of growing popularity among its user base.

The earnings announcement came after Cinedigm announced it had purchased a minority stake in Shout! Factory, a distributor of nostalgia entertainment. Even as it works to bolster its over-the-top services, Cinedigm has tapped Evolution Media Capital to evaluate takeover opportunities and explored the idea of joining forces with Relativity Media.

Cinedigm’s stock closed Thursday down 3.8% at 75 cents. Shares were trading at more than $2.80 roughly a year ago.

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Film News from Variety

Loading