Record Q2 Revenue of $107.8M; up 62% from prior year
Record Q2 Adjusted EBITDA of $30.1M; up 59% from prior year
TORONTO, Aug. 7, 2012 /CNW/ - Mood Media Corporation (ISIN:
CA61534J1057) (TSX:MM) (LSE AIM:MM) ("Mood Media" or the "Company"),
the world's leading in-store media solution provider, announced today
its results for the three and six months ended June 30, 2012.
Lorne Abony, Chairman and CEO of Mood Media Corporation, comments:
"In Q2, we accelerated our strategy of providing a broader and more
valuable suite of products and services to our existing and prospective
customers. Q2's Revenue and EBITDA growth are a clear validation of
Mood Media's growth strategy.
All of our Key Performance Indicators (KPI's) were up for the quarter. A
core component of our growth strategy is digital signage. In Q2, we
continued to successfully execute against our visual growth plan,
installing 1,134 new visual sites to a range of well-known
international brands, including Clear Channel, Volkswagen, and Skoda.
The visual growth in Q2 represented 145% growth year-over-year and 60%
growth over Q1. The growth in visual sites drove an increase in gross
margin from 58% to 62%, resulting in incremental EBITDA growth.
Our strategic focus translated into improved fundamental metrics across
the entire business. By selling a wider range of more valuable
services to our customers we continued to grow our average monthly
revenue per location, up to $61 in Q2, up from $55 in 2011, and up from
$60 in the prior quarter. Improving business fundamentals not only
helped drive this quarter's results but will have a positive impact on
the Company's future results, given the recurring nature of Mood
Media's revenue model.
As a Company with a robust and growing European business and growing
Euro-denominated revenue streams that reports its financial results in
US dollars, Mood Media faces a financial reporting dilemma that is
cosmetic in nature. While Mood Media's foreign exchange swap programs
protect its cash flows, negative movements in the Euro create
unavoidable impacts on the Company's reported EBITDA. The Euro has
weakened substantially against the US dollar year to date, and should
its weakness continue, it would lead to a significant translation
impact on Mood Media's reported EBITDA over the remainder of the year.
Notwithstanding, the company expects that the impact on EBITDA from
foreign exchange can and likely will be material.
We are proud to announce Q2's excellent results today, and we look
forward to the remainder of the year and beyond."
About Mood Media Corporation
Mood Media Corporation (TSX:MM) (LSE AIM:MM), named Canada's fastest
growing company by PROFIT Magazine is a leading in-store media
specialist that helps its clients communicate with consumers with a
view to driving incremental sales at the point-of-purchase.
Mood Media Corporation works with 580,000 commercial locations in over
40 countries throughout North America, Europe, Asia and Australia.
Mood Media Corporation's products and services reach 100 million people
every day in a broad client base including more than 850 U.S. and
international brands in diverse market sectors that include: retail,
from fashion to financial services; hospitality, from hotels to health
spas; and food retail, including restaurants, bars, quick-serve and
fast casual dining.
For further information about Mood Media, please visit www.moodmedia.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. The words
"believe", "expect", "anticipate", "estimate", "intend", "may", "will",
"would" and similar expressions and the negative of such expressions
are intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. These
forward-looking statements are subject to important assumptions. While
Mood Media considers these factors and assumptions to be reasonable
based on information currently available, they may prove to be
Known and unknown factors could cause actual results to differ
materially from those projected in the forward-looking statements. Such
factors include, but are not limited to: the impact of general market,
industry, credit and economic conditions, currency fluctuations as well
as the risk factors identified in Mood Media's management discussion
and analysis dated March 11, 2012 and Mood Media's annual information
form dated March 30, 2012, both of which are available on www.sedar.com.
Given these uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. All of the
forward-looking statements made in this press release are qualified by
these cautionary statements and other cautionary statements or factors
contained herein, and there can be no assurance that the actual results
or developments will be realized or, even if substantially realized,
that they will have the expected consequences to, or effects on, Mood
Forward-looking statements are given only as at the date hereof and Mood
Media disclaims any obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by applicable laws.
Mood Media Corporation presents EBITDA information as a supplemental
figure because management believes it provides useful information
regarding operating performance. EBITDA is not a recognized measure
under International Financial Reporting Standards ("IFRS"), does not
have standardized meaning, and is unlikely to be comparable to similar
measures used by other companies. Accordingly, investors are cautioned
that EBITDA should not be construed as an alternative to net earnings
or (loss) determined in accordance with IFRS as an indicator of the
financial performance of Mood Media or as a measure of Mood Media's
liquidity and cash flows.
SOURCE: Mood Media Corporation