Slowed down somewhat by Covid over the last two years the film production company Network Media Group [TSX.V: NTE/OTC: NETWF] has returned to its pre-COVID production pace and its financials are beginning to reflect this return to normalcy.
The group with an established reputation for making award-winning feature documentaries about iconic film and music personalities has managed to multiply third-quarter revenues to $9.5 million from $1.1 million in 2021 (and the Q3 2021 revenue was very respectable given that it was generated during a year of COVID) and turn around last year’s net loss of $578,995 into a net profit of $2.3 million.
Adjusted EBITDA rose to $2.9 million compared with a loss of $510,933 in the corresponding quarter last year while on a per-share basis net income rose to $0.03 from a loss of $0.01.
“This quarter marks a return to profitability after experiencing filming delays brought on by COVID,” said chief financial officer Darren Battersby.
“Despite these challenges, the hard work has allowed us to execute and deliver as the demand for premium content continues to increase. Over the past several years, Network has been laying the foundation for sustainable long-term growth, by solidifying our position as a trusted supplier of premium content.”
Investors clearly liked the latest earnings figures and piled into the shares, triggering a 112% rally to CAD0.085, up from CAD0.040 at the close of play Wednesday.
Rocking documentaries
Network Media Group creates documentaries that showcase some of the world’s most iconic personalities in pop culture, sports and entertainment. In the reporting quarter, it delivered a feature-length documentary on the life and legacy of American actor Sidney Poitier co-produced by Oprah Winfrey’s Harpo Productions and distributed by Apple+ and the four-part docu-series Women Who Rock delivered to American cable network EPIX. The firm has a number of other projects on the go which it continued producing during the last quarter.
Adding to its existing team of experienced experts the NMG appointed Sony Pictures Producer Rick Mischel as Advisor to Network NFT Studios.
Look ahead
Most importantly, the company’s expectations for the next six months are very positive. It has a backlog with contracted future revenues of $7.5 million, of which $5.1 million are expected in the next six months and the remaining $2.4 million after that.
“Looking forward, we have the most robust development slate in the company’s history, and we anticipate results to flow from it,” Network chief operating officer Paul Gertz said.
One foot in non-fungible tokens
What will be interesting to Armchair Trader readers is that the company has one foot in the world of sports and entertainment, and another foot in the fast-emerging world of NFTs – non-fungible tokens. It is currently developing its NFT division Network NFT Studios and expects to release Network’s first NFTs in the fourth quarter. Headed by digital assets expert Tom Lombardi formerly of 3iQ Digital Asset Management, Network NFT Studio will be seeking to create NFT opportunities by leveraging the existing Network relationships with big-name stars and their estates.
