Engine Media Reports First Quarter Fiscal 2021 Financial Results

Rhea-AI Summary

Engine Media Holdings reported first quarter revenues of $7.5 million, marking a remarkable 824% year-over-year growth. The quarterly revenue exit run rate is projected at $30+ million. The company completed a non-brokered private placement unit offering totaling $17.8 million and settled $10.7 million in convertible debt. Despite a net loss of $4.4 million, an improvement from $6.0 million the prior year, the company focuses on expanding its business-to-business software, direct-to-consumer growth, and enhancing cost efficiency.

Positive

• First quarter revenues increased by 824% year-over-year to $7.5 million.
• Quarterly revenue exit run rate projected at $30+ million.
• Non-brokered private placement offering raised $17.8 million.

Negative

• Net loss from continuing operations was $4.4 million.

(all amounts are expressed in U.S. dollars, unless otherwise stated)

- First Quarter Revenues of $7.5 Million

- Quarterly Year over Year Revenue Growth Rate 824%

- Quarterly Revenue Exit Run Rate of $30+ Million

- Completes Non-brokered Private Placement Unit Offering for $17.8 Million

- Settled $10.7 in Convertible Debt

TORONTO, Feb. 1, 2021 /PRNewswire/ -- Engine Media Holdings, Inc. ("Engine" or the "Company"; TSX-V: GAME; OTCQB: MLLLF), announced results for the first quarter fiscal 2021 ended November 30, 2020.

Lou Schwartz, Chief Executive Officer, said, "Engine started fiscal 2021 with continued momentum across all lines of business. Our efforts to accelerate are off to a strong start in fiscal 2021. Additionally, our recent acquisitions have made significant contributions, which are reflected in the first quarter, where revenues were up 824% on a year-over-year basis, and 6%, sequentially, to $7.5 million."

"Net loss from continuing operations for the first quarter of 2021 was $4.4 million compared to $6.0 million in the same year ago period. The improvement in net loss was primarily due to a decrease in non-cash operating expenses of $4.0 million, primarily driven by the gain on change in fair value of warrant liability in the fiscal 2021 period of $4.8 million compared to loss of $1.6 million in the same year ago period."

"We remain focused on expanding our business-to-business software and service revenues, developing our direct to consumer growth initiatives, strengthening our organization and balance sheet, and driving greater cost efficiency throughout the operation.  Given the increasing need for the sports media industry to develop direct to consumer fees to offset the decline of cable and satellite revenues, and the need for the esports industry to develop direct to consumer fees to diversify beyond sponsorship revenues, we believe that the solutions Engine offers will become increasingly more meaningful to both media sectors. Additionally, we continue to proudly attract some of the largest and most respected companies in the world to our cutting edge data analytics company, Stream Hatchet, and our mobile gaming studio, Eden Games. Today, Engine serves three (3) of the top seven (7) most valuable tech companies in the world."

Financials are available on Sedar.

About Engine Media Holdings, Inc.

Engine Media is focused on accelerating new, live, immersive esports and interactive gaming experiences for consumers through its partnerships with traditional and emerging media companies. The company was formed through the combination of Torque Esports Corp., Frankly Inc., and WinView, Inc. and trades publicly under the ticker symbol (TSX-V: GAME) (OTCQB: MLLLF).  Engine Media will generate revenue through a combination of: direct-to-consumer and subscription fees; streaming technology and data SaaS-based offerings; programmatic advertising and sponsorships; as well as intellectual property licensing fees.  To date, the combined companies have served clients comprising more than 1,200 television, print and radio brands including CNN, ESPN, Discovery / Eurosport, Fox, Vice, Newsweek and Cumulus; dozens of gaming and technology companies including EA, Activision, Blizzard, Take2Interactive, Microsoft, Google, Twitch and Ubisoft; and have connectivity into hundreds of millions of homes around the world through their content, distribution and technology.

Cautionary Statement on Forward-Looking Information

This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Engine to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.  In respect of the forward-looking information contained herein, Engine has provided such statements and information in reliance on certain assumptions that management believed to be reasonable at the time, including assumptions as to obtaining required regulatory approvals. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements stated herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Actual results could differ materially from those currently anticipated due to a number of factors and risks.  Accordingly, readers should not place undue reliance on forward-looking information contained in this news release.

The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Engine does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

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SOURCE Engine Media Holdings, Inc.

FAQ

What were Engine Media's first quarter revenues for fiscal 2021?

Engine Media reported first quarter revenues of $7.5 million.

How much did Engine Media grow its revenues year-over-year in the first quarter?

Engine Media experienced a year-over-year revenue growth rate of 824%.

What was the net loss for Engine Media in the first quarter of 2021?

The net loss from continuing operations for Engine Media in the first quarter of 2021 was $4.4 million.

What were the key financial highlights from Engine Media's February 1, 2021 press release?

Key financial highlights include $7.5 million in revenues, a net loss of $4.4 million, and a $17.8 million private placement.