Canadian-listed documentary film maker Network Media Group (TSXV:NTE/OTC:NETWF) reported that the company is on track to revive its operations plus expand into new areas, as it builds on its post-pandemic program. Management reported that the second quarter was a busy and productive one for the firm, which specialises in the creation of documentaries about personalities in areas like music, professional sports and Hollywood.
Network Entertainment’s teams were focused on increased production activities on multiple contracted feature documentaries and documentary series, resulting in higher expenses for the quarter, and positioning Network to have an active fall as the company expects to deliver multiple productions throughout the remainder of the year and into fiscal 2023.
While the studio’s backlog remains steady at C$17.1M, management said they are equally as enthusiastic about its development pipeline.
Network Entertainment reported financial results for the second quarter ended May 21, 2022 last week, including three month revenues of C$534,459 (2021 – C$1,233,429), a net loss of C$1,119,948 (2021 – net loss of C$620,917), and an adjusted EBITDA of negative C$847,466 (2021 – negative $568,492). On a per-share basis, the company reported a loss of C$0.01 per share (2021 – loss of C$0.01) and an adjusted EBITDA per share of negative C$0.01 (2021 – negative C$0.01).
“Network’s robust slate of projects are among the most important productions in the company’s history, with the industry’s most prominent talent and financing/distribution partners attached, positioning Network to remain in the spotlight as a consistent provider of premium global content,” said CFO Darren Battersby.
The slate of contracted productions, set to deliver throughout the remainder of the year and into fiscal 2023, features Network’s trademark mix of prominent and recognised A-list talent and directors, world-class storytelling, and best-in-class global financing and distribution partners.
Post-pandemic, the company is seeing much more demand for content as multiple streaming services compete in a market which was previously dominated by a couple of major players. This is creating massive new opportunities for smaller and specialist studios that already enjoy a competitive edge.
Brand new product streams
Network Entertainment is also developing brand new product streams, including in the fast-developing area of NFTs. It continues to make significant headway with its recently created Network NFT Studios. Partnering with the Hockey Hall of Fame was a major milestone for the business that has validated the opportunity with NFTs as the company works towards commercialising this emerging and potentially very lucrative new content medium.
Network NFT Studios acts as an extension of Network Entertainment’s core entertainment business, and the company says it will continue to engage, educate and forge important relationships with IP holders, A-list talent and global brands in the pursuit of NFT opportunities.
