Boat Rocker Media (BRMI) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income reached CAD 41.9 million, driven by a CAD 50.3 million after-tax gain from the sale of Untitled Entertainment, while prior year Q2 saw a net loss of CAD 5.8 million.

• Q2 2024 saw strong unscripted content deliveries and multiple premieres across genres, despite an industry-wide reset in film and TV.

• Adjusted EBITDA for Q2 was CAD 2.6 million, a 53% decrease from Q2 2023; year-to-date Adjusted EBITDA rose 56% to CAD 5.8 million.

• Ended Q2 with CAD 123.7 million in total cash, including CAD 77.6 million of cash available for use, and remains debt-free.

• Focus remains on IP investment, cost reduction, and leveraging a debt-free balance sheet.

Financial highlights

• Q2 2024 total revenue (including discontinued operations): CAD 58.6 million, down from CAD 128.7 million in Q2 2023.

• Adjusted EBITDA: CAD 2.6 million, down from CAD 5.4 million in Q2 2023.

• Net income: CAD 41.9 million, up from a net loss of CAD 5.8 million in Q2 2023, driven by the Untitled sale gain.

• Production, distribution, and service expenses: CAD 36.7 million, down 64% year-over-year.

• General and administrative costs from continued operations: CAD 14.9 million, down 19% year-over-year.

Outlook and guidance

• Full year 2024 adjusted EBITDA guidance reconfirmed at approximately CAD 10 million.

• Plans to use cash to repurchase up to 2 million subordinate voting shares under renewed NCIB, subject to TSX approval.

• Intends to purchase the remaining 30% minority interest in Insight Productions.

• Continued focus on cost reduction and streamlining operations for long-term success.