VANCOUVER, BC, June 2, 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 on its operations including an update on Plus Solutions
revenue growth and the launch of a comprehensive cost optimization
initiative for more efficient cash flow and to expedite the
Company's path to profitability.
BBTV began Q2 2022 with continued strong momentum in its Plus
Solutions revenue performance with April reflecting more than 40%
growth year over year. BBTV recently reported record revenue
results and its Plus Solutions now represent 30-40% of the
Company's overall gross profit in Q1 2022. The Company also raised
guidance on its Plus Solutions revenues for the year.
"With record revenue for Plus Solutions in Q1 this year, we are
steadily improving our gross margins and increasing Plus Solutions
contribution to total revenues and gross profit," said Shahrzad Rafati, Chairperson and CEO of BBTV.
"Based on the trajectory in Plus Solutions, we believe that we have
sufficient working capital to get to positive cashflow. Our
objective is to accelerate towards positive cashflow, so we are
embarking on a cost optimization program that will examine and
optimize our growth investments in the short-term."
The Company's internal review includes maximizing
cross-functional synergies between departments, allocating
resources to maximize performance of higher margin revenue streams,
and optimizing investments in future markets. Shareholders
can expect to see results of these measures from Q3 2022
onwards.
"Given market conditions we believe it's important that the
company demonstrates its ability to achieve profitability," said
Ben Groot, CFO, BBTV. "BBTV's
convertible debt arrangements are termed out for a number of years
and the company's cash resources exceed $20
million as of Q1 providing balance sheet strength as we seek
to scale towards profitability. We believe that our cost
optimization program will improve the company's resilience in the
near and long term."
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 December 2021, 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 content1. (www.bbtv.com)
1
Calculations and classifications made by BBTV based on data from
Comscore's "Top 12 Countries = December 2021 comScore Video Metrix
Media Trend – Multi-Platform – Top 100 Video Properties Report";
Top 12 countries represent ~50% of world's digital
population.
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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 has launched a
cost optimization program for more efficient cash flow and to
expedite the Company's path to profitability; based on the
trajectory in Plus Solutions, the Company believes that it has
sufficient working capital to get to positive cashflow; the
Company's objective is to accelerate towards positive cashflow, so
it is embarking on a cost optimization program that will examine
and optimize its growth investments in the short-term; that
shareholders can expect to see results of these measures from Q3
2022 onwards; that the Company seeks to scale towards
profitability; and that the Company believes that its cost
optimization program will improve the Company's resilience in the
near and long term. 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
its assumptions regarding continued growth, changes and trends in
the Company's industry and the global economy will be met; the
Company's churn will continue to remain low; that the Company will
continue to contract with new content creators and to continue to
receive increasing Views; that the Company will enter into an
increasing number of Direct Advertising Sales Strategic Deals and
Content Management agreements; the timely receipt of required
regulatory approvals and strategic partner support; the absence of
new laws, regulations, rules or policies of governments, platforms
and other strategic partners, that may negatively impact the
business of BBTV; our ability to build our market share,
enter new markets and maintain and expand geographic scope; our
ability to attract and retain key personnel and to execute on our
growth plans; our ability to obtain and maintain financing on
acceptable terms on a timely basis; that YouTube Shorts will be
monetized soon; 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; that the Company's cost optimization
program may fail to achieve expected results or to show results by
Q3 2022 or later; 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 Plus Solutions may not continue to be attractive to
creators and may not realize our expectations; the regulatory
environment and in particular, 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 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.