ResultsThe Good: Content & Distibution and CP performed well. The layering in of new content over the last few years is building revenues and cash flow streams which will be accretive for a long time.
The Bad: Spark is a catastophe. They are not monetizing the views anywhere near pre-covid levels. There is simply no tangible evidence of improvement despite Google's changes to favor quality programming, the increased viewers (90 billion in 90 days), etc,,, It seems Spark will never be the catalyst to increased equity value. Content / Distrubution / CP are going to be the only drivers of equity value.
The Ugly: Guidance for Q4. The Q4 2021 numbers were $112mm (revs) and $19.2mm (ebitda). They chose not to increase guidance, despite being asked about it on the call. That does not bode well for what to expect in Q4. If they only make the upper end of guidance for the full year it means that Q4 revs will be down 6% YoY ($105mm vs. $112mm for 2021) and ebitda down 16.5% ($16mm vs $19.2mm in Q4). Eric explained he is using incremental ebitda for growth so perhas the revs & gross margin will be up but SG&A higher (we can only hope this will be the case).