8-K
RLJ ENTERTAINMENT, INC. filed this Form 8-K on 11/09/2017
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rlje-ex991_6.htm

 

Exhibit 99.1

RLJ ENTERTAINMENT REPORTS THIRD QUARTER 2017 FINANCIAL RESULTS

 

Digital Channels subscriber count increased over 50% year-over-year

Net revenue grew 14% year-over-year, driven by 59% increase in revenue from Proprietary Digital Channels

Gross profit increased 16% year-over-year

Net loss of $2.7 million, improved 31% from last year

Adjusted EBITDA of $2.9 million, improved 3% from last year

SILVER SPRING, MD – November 9, 2017 – RLJ Entertainment, Inc. (“RLJ Entertainment,” “RLJE” or “the Company”) (NASDAQ: RLJE), today announced financial results for the quarter ended September 30, 2017.  

 

Third Quarter 2017 Highlights:

 

Digital Channels paying subscribers increased over 50% from the third quarter of 2016 to over 620,000.

 

Digital Channels segment revenues increased 58.6% to $7.0 million from $4.4 million in third quarter 2016.

 

Total net revenue increased 13.9% year-over-year to $20.9 million, primarily driven by a 58.6% increase in Digital Channels revenue. Our Wholesale Distribution segment revenue remained flat year-over-year.

 

Gross Profit increased 16% year-over-year to $8.2 million from the third quarter of 2016 as higher revenue from the Digital Channels offset the increased investment in content.

 

Equity Earnings from Agatha Christie Limited (ACL) increased by 74.0% to $1.7 million from the third quarter of 2016 as ACL continued to improve its film, TV distribution and publishing business segments.

 

Net loss was $2.7 million, an improvement of $1.2 million from third quarter of 2016.

 

Adjusted EBITDA grew 3.4% to $2.9 million from the third quarter of 2016 as a result of continued growth of the higher-margin Digital Channels segment and higher equity earnings from ACL.

Robert L. Johnson, Chairman of RLJ Entertainment, stated, “Acorn TV and UMC continue to prove that compelling programming targeted toward specific audiences, combined with effective marketing and subscriber engagement, creates a powerful value proposition in the OTT landscape. As standalone channels, Acorn TV and UMC represent a very significant and immediate opportunity to deliver incremental value to our subscribers and investors, given the Company’s timely strategy to accelerate content, marketing, and distribution investments.”

Miguel Penella, Chief Executive Officer of RLJ Entertainment, stated, “Exceeding 620,000 subscribers is a major accomplishment in our path to achieve our 1 million subscribers milestone within the next 12 to 18 months.  Our selective, compelling and engaging programming, including new and returning exclusive franchises, continues to draw high-touch consumer engagement.  We remain committed to execute our strategy of accelerated investments in content, distribution and marketing to support rapid Digital Channel growth and capture momentum in our IP licensing and wholesale business units.”

Nazir Rostom, Chief Financial Officer of RLJ Entertainment, commented, “RLJE has transformed into a strong digital company.  Quarter after quarter, our Digital Channels’ revenue continues to grow and represent a meaningful part of our total revenues. Our wholesale business has stabilized and our operational metrics continue to improve. With our increasing subscriptions, growing Digital Channel’s revenues and improving overall profitability, we expect to deliver revenue and margin growth for 2017.”

Conference Call Information

RLJE will hold a conference call today at 11:30 a.m. ET to discuss these results.  To participate in the live conference call, interested parties may dial +1.844.348.1685 (+1.213.358.0890 outside the U.S. and Canada) and provide the conference ID number 1637472, or listen via webcast at www.rljentertainment.com.  The webcast will be archived in the investors section of RLJE's website.

About RLJ Entertainment, Inc.

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