BBTV Provides Update Following Cost Optimization Review
BBTV Holdings Inc. (OTCQX: BBTVF) has launched a cost optimization initiative resulting in a 14% workforce reduction. The company aims to refocus on high-margin revenue drivers like Content Management and Mobile Gaming Apps. CEO Shahrzad Rafati emphasized that these changes will lead to better results while CFO Ben Groot stated that the optimizations won't impair growth plans. Shareholders can expect to see positive impacts on performance beginning Q3 2022.
- Cost optimization plan targeting high-margin revenue areas.
- Expected positive impact on performance starting Q3 2022.
- 14% reduction in workforce may affect employee morale.
- Company's historical performance includes losses and negative cash flow.
VANCOUVER, BC, June 16, 2022 /PRNewswire/ - BBTV Holdings Inc. (TSX: BBTV) (OTCQX: BBTVF) (Frankfurt: 64V) ("BBTV" or the "Company"), the leading creator monetization company with a mission to help creators become more successful, provides a corporate update following the launch of a comprehensive cost optimization initiative.
The Company's cost optimization plan has resulted in a workforce reduction and a more focused resource allocation towards its key high margin revenue drivers, specifically across Plus Solutions including Content Management, Direct Advertising Sales and Mobile Gaming Apps.
"This review has been focused on ensuring that our core businesses deliver the best results," commented Shahrzad Rafati, Chairperson and CEO, BBTV. "We have had to make some hard choices, but this is the right moment to focus on the lines of business that create the greatest value for our customers, shareholders, and ecosystem partners."
The cost optimizations reflect a reduction of total headcount by approximately
Ben Groot, CFO of BBTV commented: "The cost optimizations we've effected have been designed in such a way as to not materially impact the Company's growth plans. The Company continues to focus on generating higher margin revenues which expedites BBTV's path to profitability and positive cash flow."
The Company will continue to review the performance of its operations for opportunities to operate more efficiently and further close the gap to profitability and provide shareholders with material updates thereto.
About BBTV
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 2022, BBTV had the fourth most unique monthly viewers among digital platforms with more than 600 million globally, who consumed more than 35 billion minutes of video content [1]. (www.bbtv.com)
[1] Calculations and classifications made by BBTV based on data from Comscore's "Top 12 Countries = January 2022 comScore Video Metrix Media Trend – Multi-Platform – Top 100 Video Properties Report"; Top 12 countries represent ~
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's cost optimization review has been focused on ensuring that its core businesses deliver the best results; shareholders can expect to see the positive impact of these initiatives on performance starting from Q3 2022 onwards; the cost optimizations effected have been designed in such a way as to not materially impact the Company's growth plans; the Company continues to focus on generating higher margin revenues which expedites BBTV's path to profitability and positive cash flow; and the Company will continue to review the performance of its operations for opportunities to operate more efficiently and further close the gap to profitability and provide shareholders with material updates thereto. 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 will not change in any material respect; that its internal financial forecasts and models, including its estimates of costs and revenue, are accurate; that the Company will enter into an increasing number of both Base and Plus Solutions agreements on terms at least as favourable to the Company as its existing agreements; and that YouTube Shorts will be monetized soon. 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; that the Company's cost optimization program may fail to achieve expected results or to show results by Q3 2022 or later; 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 Plus Solutions may not continue to be attractive to creators and may not realize our expectations; the Company's need for timely performance by its creators and strategic partners; the Company's need for additional capital, which is not assured on a timely basis or at all; 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 Company's Annual Information Form dated March 29, 2022 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.
Contacts:
Media Relations
Mark Funston
Head of Marketing and PR
778-288-4950
mfunston@bbtv.com
Investor Relations
ir@bbtv.com
Ron Shuttleworth
Partner
Oak Hill Financial Inc
(647)–500–7371
rshuttleworth@oakhillfinancial.ca
BBTV-C
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SOURCE BBTV Holdings Inc.
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