Canadian-listed entertainment company Network Media Group (TSXV:NTE/OTC:NETWF) reported its Q1 2022 results yesterday (Wednesday) and announced contracted future revenues of C$16.3m, with C$10.3m to be recorded in the next six months. The company specialises in award-winning film productions, including documentaries as well as digital content.
Network is recognised within the film and content space for the high quality of the productions it delivers to its partners. These have earned the studio industry awards and critical acclaim. It enjoys an already strong network of relationships within movie making, music and professional sports.
New NFT venture established
Notably, Network Media Group has just established Network NFT Studios, to be led by Tom Lombardi as President. This will be carving out a new business area for NMG in the fast-evolving area of non-fungible tokens. It is already in the process of exploring and cementing relationships with the owners of exciting IP which can be leveraged within the NFT arena.
Lombardi is a former MD at 3iQ Digital Asset Management, a Director at Wave Financial, and Head of Growth for the Ethereum Enterprise Alliance. He is an adjunct professor of finance at Pepperdine University.
The creation of Network NFT Studios is regarded as the perfect complement to NMG’s existing film making business, with many synergies to be realised around content creation, intellectual property, story-telling, and the engagement of global audiences.
Physical production has fully resumed
The company’s program development has traditionally centred around high profile subjects in areas like entertainment and sports. It has won critical praise due to its ability to access the personal, behind the scenes stories of iconic individuals, like the pioneers of the punk rock movement, legendary boxer Muhammad Ali and actor Heath Ledger.
While Covid has limited the activities of most production companies around the world, with the pandemic now under control, there is scope to move forward with new projects on a range of fronts. Network Entertainment is no exception in this respect.
“Although our reported revenues in the first quarter are lower than normal, those results are not indicative of our current operations,” explained Darren Battersby, the company’s CFO. “Along with a full slate of projects in various stages of development, Network’s physical production has now fully resumed after being interrupted by Covid filming protocols, and we anticipate the bulk of these projects which are now back in production to be delivered to our partners in Fiscal 2022.”
Battersby said the company had some very exciting new projects in the pipeline: “We believe the magnitude of the projects set to deliver in the year ahead have strong commercial potential and will create unbounded new opportunities for Network,” he added.
Network Media reported revenues of C$428,570 (2021 – C$282,155) with a net loss of C$853,375 – C$0.01 per share (2021 net loss: C$552,821 – $0.01 per share). The company announced an adjusted EBITDA of negative C$527,772 – $0.01 per share (2021 adjusted EBITDA of negative C$518,461 – $0.01 per share).
