TORONTO, ON--(Marketwired - August 25, 2016) - YANGAROO Inc. (TSX VENTURE: YOO) (OTCBB: YOOIF), the industry's leading secure digital media distribution company today announced its results for the second quarter and first half ended June 30, 2016. Revenue for the second quarter of 2016 was $1,157,618, a decrease of 8% compared to the second quarter of 2015, while YTD revenues of $2,504,767, have increased 0.4% over the same period in 2015, and when normalized without one-time European music licensing revenue of $124,115 in Q1 2015, the first half growth year over year was 0.6%.
Advertising Division revenue in the second quarter was impacted negatively, primarily as a result of the loss of active brands by some of our customers. Entertainment Division year over year growth was due primarily to an increase in pricing effective Jan 1st, resulting in the higher music video and music audio delivery revenue.
Operating expenses in Q2 were 13% lower than same period in 2015. The expenses have declined year on year as YANGAROO continues to manage the cost base in conjunction with changes in revenue. Net loss for the quarter was $398,100, a reduction of 25% over previous year. EBITDA improved 29% over the same period of 2015. The normalized EBITDA loss for the year to date of $528,852 is 32% lower than the loss for the same period in 2015.
"Revenue declines resulting from brand churn within some of our advertising customers impacted the quarter. While a short term disappointment, we are pleased to announce that our North American broadcast footprint will be complete in September, and this will have a positive impact on revenue. We have commitments from both new and existing customers for additional volume resulting from this change," said Gary Moss, President and CEO of YANGAROO. "We have also hired 2 additional sales representatives in August, with extensive experience in advertising distribution sales. Continued management of our cost base has mitigated some of the revenue volatility."
Summary of operating results for the periods ended June 30th:
|| ||Second Quarter
|Normalized EBITDA (loss)
|Net loss for the period
|Loss per share (basic & diluted)
YANGAROO is a company dedicated to digital media management. YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients. The YANGAROO Awards platform is now the industry standard and powers most of North America's major awards shows.
YANGAROO has offices in Toronto, New York, and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF.
The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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.