NETWORK MEDIA GROUP ANNOUNCES 2025 FIRST QUARTER RESULTS

Cision Canada

29-04-2025

VANCOUVER, BC, April 29, 2025 /CNW/ - Network Media Group Inc. (TSXV: NTE) (OTC: NETWF) ("Network" or "the Company") today reported financial results for the first quarter ended February 28, 2025 ("Q1 2025"), including revenues of $1,494,458 (Q1 2024 – $2,128,816), net income of $293,709 (Q1 2024 – net loss of $605,971), and Adjusted EBITDA 1 of $475,963 (Q1 2024 – Adjusted EBITDA loss of $354,968). On a per-share basis, the Company reports earnings of $0.02 per share (Q1 2024 – loss of $0.03), and an Adjusted EBITDA of $0.03 per share (Q1 2024 – loss of $0.02). The financial statements and related Management's Discussion and Analysis ("MD&A") can be viewed on SEDAR+ at www.sedarplus.ca.
Network President Curtis White stated: "This quarter demonstrates the strategic value of our proprietary content and our continued focus on cost-efficiency. With multiple high-profile projects now in post-production and a compelling development slate, we are well-positioned to sustain growth through 2025 and beyond. The success of Sly Lives! and the delivery of I Am Luke Perry represent the kind of premium content we are proud to bring to global audiences."
Key metrics for Network's three months ended Q1 2025 include the following highlights:
Total revenues of $1,494,458 (Q1 2024 – $2,128,816);
Net income of $293,709 – $0.02 per share (Q1 2024 – Net loss of $605,971 – $0.03 per share);
Adjusted EBITDA of $475,963 – $0.03 per share (Q1 2024 – Adjusted EBITDA loss of $354,968 – $0.02 per share);
Contracted future production revenues ("backlog" 2) of $9.7M with $6.2M expected within the next six months and $3.5M beyond six months.
Operational highlights for the quarter include:
Sly Lives!, directed by Ahmir "Questlove" Thompson, premiered at the 2025 Sundance Film Festival and launched globally on Hulu/Disney+ in February;
Delivery of I Am Luke Perry, a feature-length proprietary documentary, in Q1 2025;
Continued production on two feature-length documentaries, commenced production on another feature-length documentary, and a five-episode documentary series.
1"Adjusted EBITDA" is calculated based on EBITDA (known as earnings/loss before interest, taxes, depreciation and amortization) plus share-based payments expense, finance costs (income), foreign exchange gain (loss), and losses and other items of an unusual nature that do not reflect ongoing operations. EBITDA and Adjusted EBITDA are commonly reported and widely used by investors and lenders as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. EBITDA and Adjusted EBITDA are not an earnings measure recognized by IFRS and therefore do not have a standardized meaning prescribed by IFRS. Therefore, EBITDA and Adjusted EBITDA may not be comparable to similar measures presented by other issuers.
2 The Company uses the non-IFRS measure "backlog", which is defined as the undiscounted value of signed agreements for production services for work that has not yet been performed, but which the Company expects to recognize revenue in future periods. The extent of eventual revenue recognized in future periods may be materially higher or lower than this amount, depending upon assumptions and expectations that include, but are not limited to the following: the terms of the contracts will not be altered; delivery of the Company's products will occur as scheduled; the purchasing party will make payment as and when due under the contract, and will comply with all payment terms; the US-Canadian currency exchange rates remain stable (assumed to be 1.35 USD-CDN for the purposes of the estimates made herein); no unforeseen event interrupts business in the ordinary course; and the purchasing party will pay, or has paid, Network on a pro-rata to percent completed for a film or episode that is in progress. Should conditions change, the revenue estimates may not be met and actual results may differ, perhaps materially.
About Network Media Group / Network Entertainment
Network Media Group is the parent company of Network Entertainment Inc.
Network Entertainment is a creatively driven, boutique film, television, and digital content production company that creates, finances, and produces award-winning programming for television, digital platforms, and movie audiences around the world.
The Network premium brand of content delivers world-class casts and features visually cinematic, richly crafted storytelling. The Company's productions are consistently embraced by both audiences and critics alike, garnering awards, record ratings, and unparalleled media coverage for Network and its partners.
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Cautionary Statement on Non-IFRS Financial Measures and Forward-looking Information
In addition to results reported in accordance with IFRS, this news release refers to certain non-IFRS financial measures as supplemental indicators of the Company's financial and operating performance. These non-IFRS financial measures include EBITDA, Adjusted EBITDA and Future Contracted Production Revenue (commonly referred to as backlog). The Company believes these supplemental financial measures reflect the Company's on-going business in a manner that assist the reader's meaningful period-to-period comparisons and analysis of trends in its business.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. These statements are necessarily based upon management's perceptions, beliefs, assumptions and expectations, as well as a number of specific factors and assumptions that, while considered reasonable by management of the Company as of the date of such statements are inherently subject to significant uncertainties and contingencies that could result in the forward-looking information ultimately, perhaps materially, being incorrect. All forward-looking information in this news release involve known and unknown risks, uncertainties and other factors that are beyond the control of the Company and may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof.