-- Adjusted EBITDA1 increases 31% driven by strong growth in Global Channels
& Streaming
-- Significant increase in Connected TV $(CTV)$ advertising sales reflecting
strong operational execution to capitalize on industry shift of
advertising budgets from traditional linear TV to CTV
-- Net income impacted by one-time items
TORONTO, Aug. 11, 2025 /CNW/ - Blue Ant Media Corporation ("Blue Ant" or the "Company") (TSX: BAMI), an international streamer, production studio and rights business, today announced the financial results of its operating subsidiary, Blue Ant Media Inc. ("BAM"), for the third quarter ("Q3 F2025") ended May 31, 2025. BAM was the reverse takeover acquiror of the Company in a go-public transaction that closed on August 1, 2025 (the "RTO"). The Company, being the resulting company of the RTO, now comprises BAM's business as well as Jam Filled Entertainment, Proper Television and Insight Productions retained divisions. The quarterly and year-to-date results discussed in this news release are for BAM only and do not incorporate results from the businesses retained by the Company in connection with the RTO.
Blue Ant will hold a conference call/webcast to discuss BAM's results on, August 12, 2025, at 11:00 a.m. ET. Unless otherwise noted, all dollar ($) amounts are in Canadian dollars.
Michael MacMillan, Blue Ant's Chief Executive Officer, said:
"Blue Ant delivered a solid third quarter driven by significant growth in our Global Channels & Streaming segment. Contribution from our Connected TV digital ad solutions business grew significantly, reflecting the convergence of content, commerce and advertising on the biggest screen in the house. Our global focus on growth and our interconnected streaming, production, and distribution operations have provided us stability this year despite ad market softness, cord cutting, and muted greenlights from global commissioners. Our recently completed reverse takeover has further increased Blue Ant's dry powder, which will enable us to invest in key areas to accelerate growth, both organically and through acquisitions, while enhancing the scale and diversity of our studio. The result is that the current challenging industry conditions present a unique opportunity for us to pursue significant content and business acquisitions at attractive valuations."
Financial highlights(1)
-- Revenues increased by 7% year-over-year in the quarter as strong growth
in global advertising revenue offset a decline in production revenues
from delayed greenlights. The increase in revenues combined with a
decline in cost of sales expense drove a 31% increase in Adjusted EBITDA
for the same time period.
-- Global Channels and Streaming segment profit increased
significantly to $5.3 million in the third quarter from $3.3
million in the same period last year driven by an increase in CTV
ad sales and channel revenues.
-- Canadian Media segment profit was $8.6 million in the third
quarter compared to $9.0 million in the prior year period
reflecting a modest decrease in revenues due to headwinds in the
traditional broadcast advertising market, partially offset by
growth in consumer show revenue attributable to continued
post-Covid recovery in the sector.
-- Production and Distribution segment profit for the third quarter
was $2.1 million compared to $1.3 million in the third quarter of
the prior year, as a decline in production revenues due to several
productions that were anticipated for this year that have not
been greenlit, was more than offset by an increase in
international distribution revenues as well as a decline in
associated cost of revenues and a reduction in sales, general and
administrative expenses.
-- Loss from continuing operations was $11.2 million for the third quarter
compared to income of $2.7 million in the prior year period, as the
increase in Adjusted EBITDA was offset by one-time items that included
$4.2 million in transaction related costs, an $8.3 million goodwill
impairment charge, and $8.5 million in share-based compensation related
to accelerated recognition of certain RSUs which fully vested and settled
on closing of the reverse takeover.
-- Operating cash inflow in the first nine months of fiscal 2025 was $5.0
million compared to $5.6 million in the prior year period with the
decline due in part to RTO transaction-related costs. Including working
capital changes, net cash provided by operating activities was $11.1
million compared to $10.4 million for the first nine months of fiscal
2025. Cash generated in the period was primarily used for debt repayment,
capital expenditures and investments in library content.
Financial Summary C$M
3 months ended May 31, 9 months ended May 31,
Operations 2025 2024 2025 2024
Revenues
Global Channels and
Streaming 21.4 13.0 59.9 41.8
Canadian Media 22.2 23.5 50.3 56.4
Production and
Distribution 15.1 17.6 35.6 47.7
Inter-segment eliminations (3.0) (2.3) (5.6) (3.7)
Revenues 55.7 51.8 140.2 142.2
Segment Profit & Adjusted
EBITDA
Global Channels and
Streaming 5.3 3.3 13.7 10.3
Canadian Media 8.6 9.0 15.5 18.7
Production and
Distribution 2.1 1.3 (1.9) (3.0)
Corporate & Eliminations (1.3) (2.4) (2.3) (3.2)
Adjusted EBITDA 14.6 11.1 25.0 22.8
Income (loss) from
continuing operations
before income
taxes (8.1) 5.1 (7.7) 30.1
Income (loss) from
continuing operations (11.2) 2.7 (15.0) 26.3
9 months ended May 31, TTM ended
May 31, 2025
Cash flow 2025 2024
Cash flows from operations* 5.0 5.6 24.9
Net cash provided by operating
activities 11.1 10.4 21.6
Cash interest paid (3.1) (5.7) (4.0)
Repayment of lease liability (1.5) (1.8) (2.0)
Additions to property and equipment (1.6) (0.8) (1.9)
Additions to intangible assets (1.3) (0.1) (3.2)
* excluding change in non-cash operating working capital
Financial position, as at: 31-May-25 31-Aug-24
Bank indebtedness and promissory notes less cash 26.1 29.3
Lease liabilities 14.2 14.9
Interim production financing 27.1 26.6
Quarterly Conference Call
Blue Ant's management team will hold a conference call to discuss BAM's Q3 F2025 results:
DATE: Tuesday, August 12, 2025
TIME: 11:00 a.m. Eastern Time
WEBCAST: https://app.webinar.net/e9px1L2VRZ4
A link to the webcast will also be available on Blue Ant's website at https://blueantmedia.com/investor-relations. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.
DIAL-IN: To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/4lp6HJn to receive an instant automated call back. You can also dial direct to be entered to the call by an Operator: 1-416-945-7677 or 1-888-699-1199.
TAPED REPLAY: 1-289-819-1450 or 1-888-660-6345, Replay Code 50111 # (Available until Aug. 19, 2025)
Capitalized Terms
Capitalized terms used in this release and terms we use to describe our segments, including Global Channels and Streaming, Production and Distribution, and Canadian Media, and revenue types are described in BAM's Management's Discussion and Analysis of Financial Condition and Results of Operations for the three months ended May 31, 2025 and May 31, 2024 (the "Q3 F2025 MD&A") filed on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile and available on the Company's investor relations website.
(1) Non-IFRS Measures
This news release makes reference to certain non-IFRS measures including "Adjusted EBITDA" and other measures. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures and other measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Our management uses these non-IFRS measures and other measures in order to facilitate
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