VANCOUVER, BC, Aug. 4, 2021 /PRNewswire/ – BBTV Holdings Inc. (TSX: BBTV) (OTCQX: BBTVF) (the “Company”), the leading creator monetization company with a mission to help creators become more successful, is pleased to provide the following corporate update.
Shahrzad Rafati, Chairperson and CEO, BBTV, comments: “We are pleased to provide this corporate update that speaks to our improving fundamentals and growth prospects as well as key management updates. Since going public on October 28, 2020 our core business has grown significantly and based on our current trajectories, we continue to expect to be Adjusted EBITDA positive by next fiscal year1. Despite the reduction in our share price, which management feels is not indicative of the Company’s value, our financial performance has been solid and our recent financing has further strengthened our balance sheet which provides us with the firepower to further accelerate our growth as we continue to assess accretive acquisition opportunities. At the core of this success, our industry-leading end-to-end technology remains essential to the success of thousands of content creators. Our creators, empowered by this innovative platform, now reach over 600 million people monthly. We look forward to our earnings report where we will provide significant updates that demonstrate the continued solid health and power of our platform and overall business.”
Management updates:
- Todd Tappin, who became CFO of the Company less than a year ago, will be leaving the Company to pursue another opportunity. Ben Groot, who as VP Finance was the Company’s chief financial officer for over six years, will then assume the role of Acting CFO.
- BBTV recently also announced the addition of Martin Cass, former President of leading advertising group, Carat and former CEO of Media Assembly as a Strategic Consultant to help drive direct advertising sales growth.
Shahrzad Rafati comments: “We thank Todd for his help during the IPO process and wish him well in his new pursuits. Ben Groot will re-assume the top financial position within the Company, a post he had held for six years prior to Todd’s appointment. BBTV’s Finance team led by Ben and the Company’s newly fortified corp dev team led by Blake Corbet will continue to drive the Company forward in its operations and growth plans and not miss a beat.”
Industry Trends – Online Video is Burgeoning
- As of June 10th, the global creator economy is estimated to have grown to USD $104.2 billion2.
- Over 120 million people now watch YouTube on TVs every month3.
- Video now accounts for almost half of all time spent on Facebook. Instagram Reels, which is Facebook’s short form video format, is already the largest contributor to engagement growth on Instagram4.
- In addition to the growth of AVOD platforms like YouTube and Facebook, Netflix had 209 million subscribers as of the end of June, 2021, and Disney had 103.6 million Disney+ subscribers as of April 3, 20213.
Direct Ad Sales – Significant Expansion of Brands Using our Platform
- In Q2 2021, the Direct Ad Sales team had the largest expansion of brands from advertisers in its CPG (Consumer Packaged Goods) segment. It also expanded in the Auto segment and won its first Retail Banking order.
- For the second half of the year the team is focused on expanding existing client relationships and targeting post pandemic growth areas in Retail, Luxury, and Quick Service Restaurants.
- The Company looks forward to providing more details during its next earnings event.
Mobile Apps – Continued Positive Developments
BBTV launched a new casual mobile game for leading gaming creator Krew Eats, the app was the No.1 most downloaded iPad app in the US within 24 hours of launch. The game also became the #4 and #6 most downloaded Casual game on Android and iPhone, respectively, in the US.
- BBTV launched a new casual mobile game for leading gaming creator Krew Eats, the app was the No.1 most downloaded iPad app in the US within 24 hours of launch. The game also became the #4 and #6 most downloaded Casual game on Android and iPhone, respectively, in the US.
- BBTV’s Interactive division continues to grow the value of its audience and experienced its highest average LTV (lifetime value) in Q2 2021.
New Revenue Streams – NFT Related Revenue Streams to Come Online
- BBTV added Non-Fungible Tokens (NFTs) as a new Plus Solution to generate a new revenue stream.
- BBTV plans to activate its IP and relationships with some of the world’s largest creators across the NFT metaverse.
- In May 2021, BBTV announced its first NFT will be with Grammy-winning and multi-platinum music producer Zaytoven. Over the years, Zaytoven has worked with artists from Drake, Travis Scott, Young Dolph, Lil Yachty and Lil Uzi Vert, to Rick Ross, Jeezy, Yo Gotti, Usher and Keyshia Cole.
- In July 2021, BBTV made an investment into Nifty’s, Inc., the first social NFT platform dedicated to bringing digital collectibles to mainstream audiences.
Earnings Date Announcement:
The Company will announce its earnings and hold its quarter end conference call after market close on August 11, 2021. The Company’s management including Founder and CEO, Shahrzad Rafati, current CFO Todd Tappin and Ben Groot Acting CFO in waiting will provide a financial update and be available to provide commentary and answer analyst questions. Conference call details will be shared after market close today.
Footnotes:
1 Adjusted EBITDA is a non-IFRS measure, and does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. It is defined as net earnings or loss, as applicable, before finance expenses, income tax expense (recovery), amortization and depreciation, share-based compensation, unrealized and realized gains or losses due to foreign exchange, transaction-related costs, and certain other items as set out in the reconciliation table contained in our Management’s Discussion and Analysis for the first quarter of 2021, dated as at May 13, 2021, filed on SEDAR at www.sedar.com under the profile of BBTV Holdings Inc., and which also can be found on the Company’s website at https://s26.q4cdn.com/150287624/files/doc_financials/2021/q1/BBTV-2021-Q1-MDA-FINAL.pdf . In that MD&A, Adjusted EBITDA was a loss of approximately $2.5 million, compared to a net loss under IFRS of approximately $9.1 million. The Company uses Adjusted EBITDA to provide readers with a supplemental measure of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of performance. Management also believes Adjusted EBITDA is a useful performance measure as it provides information regarding the Company’s ongoing core operating activities, trends in underlying performance, the preparation of annual operating budgets and is used by management to assist in operating decisions and resource allocations.
2 https://influencermarketinghub.com/creator-earnings-benchmark-report/
3 https://www.cnbc.com/2021/07/28/youtube-is-a-proven-juggernaut-that-rivals-netflix-in-the-streaming-wars.html
4 https://screenrant.com/instagram-reels-facebook-q2-earnings-video-views-tiktok/
5 https://www.tubefilter.com/2021/07/28/youtube-q2-2021-earnings-shorts-views-per-day/
6 https://www.marketwatch.com/story/with-skyrocketing-sales-youtube-is-as-big-as-netflix-11627487889
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 2021, BBTV had the second most unique monthly viewers among digital platforms with more than 600 million globally, who consumed more than 50 billion minutes of video content, the most among media companies [1]. (www.bbtv.com)
[1] Calculations and classifications made by BBTV based on data from Comscore’s “Top 12 Countries = January 2021 comScore Video Metrix Media Trend – Multi-Platform – Top 100 Video Properties Report”; Top 12 countries represent ~50% of world’s digital population.
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”) which reflects the Company’s current expectations regarding future events, including that based on the Company’s trajectories, the Company continues to expect to be Adjusted EBITDA positive by next fiscal year; that the Company’s strengthened balance sheet provides it with the firepower to further accelerate its growth as it continues to assess accretive acquisition opportunities for the second half of the year; that the Company’s next earnings report will provide significant updates that demonstrate the continued solid health and power of its platform and overall business; that for the second half of the year the Direct Ad Sales team is focused on expanding existing client relationships and targeting post pandemic growth areas in Retail, Luxury, and Quick Service Restaurants; that BBTV’s Interactive division continues to grow the value of its audience; that BBTV plans to activate its IP and relationships with some of the world’s largest creators across the NFT metaverse; that BBTV’s first NFT will be with Grammy-winning and multi-platinum music producer Zaytoven; and other information in future periods. 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 and trends will not change in any material respect in the foreseeable future; that its estimates of costs and revenue for future periods are accurate; that its assumptions regarding continued growth, changes and trends in the Company’s industry and the global economy will be met; that the Company will be able to secure successful transactions with some of the world’s largest creators across the NFT metaverse; that the Company will complete a successful first NFT offering with Zaytoven; that the Company will continue to contract with new content creators and to continue to receive increasing views; and that the Company will close accretive acquisitions, as well as the Company’s assumptions regarding foreign exchange rates. 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; the effect of competition; 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 or its creators’ NFTs may not realize significant revenue or at all; that the Company’s or its creators’ NFT offerings may not be attractive to the world’s largest creators; the regulatory environment and in particular, the fact that NFTs are a relatively recent concept and new regulations may be enacted with which the Company may not be able to comply, and government regulation of the Internet as well as privacy regulation which are both evolving and unfavourable developments could have an adverse impact on the Company’s operating results; litigation risk; intellectual property risks; the Company’s need for timely performance by Zaytoven; the Company’s reliance on technology which may not perform as expected or may become obsolete; changes in tax laws or their application by the Company’s strategic partners; the Company’s significant reliance on its relationship with one digital platform; exchange rate fluctuations; and the impact of the continuing COVID-19 pandemic; as well as the factors discussed under “Risk Factors” in the final prospectus of the Company dated October 22, 2020 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 purpose of the forward-looking information is to provide the reader with a description of management’s expectations with respect to the Company’s future performance and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as of the date made. The Company does not undertake any obligation to update such forward–looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Links to SEDAR filings, conference call recordings and press releases are available on the investor website at: https://investors.bbtv.com/
Contacts:
Media Relations
Dan Gamble,
Head of PR & Corporate Communications,
778-873-0422
[email protected]
Investor Relations
[email protected]
Ron Shuttleworth
Partner
Oak Hill Financial Inc
(647)–500–7371
[email protected]
BBTV-C
SOURCE BBTV Holdings Inc.