Cineverse reports Q2 EPS (4c) vs. (65c) last year

Reports Q2 revenue $13.01M vs. $14.01M last year. Chris McGurk, Cineverse Chairman and CEO, stated, “Unlike many of our competitors who only have a single streaming channel and revenue model, our more than two-dozen enthusiast streaming channels and multiple revenue streams give us the ability to manage our business as a portfolio. This provides us with a unique opportunity to improve our profitability by optimizing our portfolio via eliminating channels that generate lower margin revenues and focusing resources on higher return channels. Implementation of this strategy, combined with a significant reduction of $2.8 million in SG&A drove the $6.3 million overall operating cost reduction we achieved this quarter. That helped generate a total direct operating margin of 64%, up from 42% last year and exceeding our stated guidance of 45% to 50%. This also enabled us to increase our operating profit by $5.3 million, or 112%, to $0.6 million and generate Adjusted EBITDA of $2.4 million, up $3.7 million, or 283%. Clearly, our cost reduction and margin improvement efforts are bearing significant fruit, and we are far from done in this area as we drive toward our goal of sustainable profitability.”