You On Demand reduces losses in Q3
Louise Duffy | 17-11-2013
Chinese VOD platform You On Demand has shaved considerably its losses as revealed by its quarterly results for the three-month period ended 30 September 2013.
Revenue for the quarter was $0.1 million, while total operating expenses declined approximately 35% to $2 million. This lower cost base helped lead to a more than 30% reduction in the company's operating loss, to $2.6 million in Q3.
A one-time $5.6 million gain on the sale of You On Demand's non-core Jinan Broadband assets resulted in net income of $3.0 million, or diluted EPS of $0.14 per share – based on 15.6 million weighted average shares outstanding at quarter-end.
Earlier this month, You On Demand received a $2 million investment from China-based mobile Internet company C Media, bringing the latter's total investment in the company to $6 million.
Commenting on the results, Shane McMahon, chairman of YOU On Demand, said: "C Media's strategic investment, in multiple tranches, as well as our new mobile content distribution agreement with Huawei via the YOU Cinema App, are milestones for our organisation. Partnering with these two respected China-based organisations provides us with the requisite resources to continue YOU On Demand's rapid expansion, awareness and brand recognition across multiple distribution platforms, especially in the mobile space. We also plan to deploy a portion of C Media's investment in further diversifying our array of entertainment content and continue building YOU On Demand's multi-platform brand."