(via Thenewswire.ca)
Vancouver, Canada / TheNewswire / March 23, 2016 - Network Media Group Inc. ("Network" or "the Company") (TSX: NTE.V) is pleased to announce record-breaking revenues of over $2.15 million from the operations of its subsidiary, Network Entertainment Inc., during the year-ended November 30, 2015 ("Fiscal 2015").
Network reports today the financial results for its fourth quarter ended November 30, 2015 ("Q4 2015") and Fiscal 2015, which include the following highlights:
-Revenues up 150% for Fiscal 2015 to $2,187,601
-Revenues up 350% for Q4 2015 to $1,627,000
-Income increased by over $220,000 for Fiscal 2015, to $100,456
-Income of $484,866 ($0.01 per share) for Q4 2015, up over eight-fold from fourth quarter 2014
The Company's consolidated financial statements for November 30, 2015 and 2014, are available on www.sedar.com under the Company's profile.
The improved results are directly attributable to the increased levels of production that Network has experienced over the year. It released two icon documentaries, I Am Chris Farley and I Am Johnny Cash, and commenced production on three other projects during the year, including a six part docu-series. The critical acclaim received for the Company's recent films translated into strong online and video-on-demand sales during the year, in turn bolstering revenues for the year.
Executive Chairman Robert Pirooz commented, "This has been a turn-around year for the Company, as our results show. 2015 exceeded our expectations and beat the projections we provided in our press release on January 7, 2016. Derik Murray and his team have worked extremely hard this year to make the Company profitable and 2016 is poised to be a year with far more success."
CEO Derik Murray quotes, "We are proud of our performance this year. Everyone from the Board of Directors to every level of our team has pulled together to make this Network's best year on record. We are experiencing tremendous momentum in the marketplace with the ongoing support of premium industry partners and are devoting our full efforts toward delivering a strong slate of properties for the year ahead."
A more detailed analysis of the other components of the Company's performance can be found in its Management Discussion and Analysis as filed on www.sedar.com.
The Company further reports, in order to honour prior commitments previously announced and made to Robert Pirooz in connection with his recruitment to serve as Executive Chairman of the Company, it has granted Mr. Pirooz 300,000 incentive stock options exercisable at $0.20 per share and expiring on July 16, 2019. The stock options are subject to regulatory approval.
About Network Media Group
Network is focused on becoming one of the world's leading developers and producers of entertainment properties for the global marketplace and its worldwide audience. It is the parent company of Network Entertainment Inc., an established television and film production company with an award-winning international reputation. Its productions include the Academy Award shortlisted feature documentary Facing Ali, as well as documentaries on the lives of Bruce Lee, Steve McQueen, Evel Knievel and, most recently, Chris Farley and Johnny Cash. The I Am Chris Farley production, which was released in the summer of 2015, set all time ratings records for Spike.
Network's past projects and current productions can be viewed at www.networkentertainment.ca
For further information concerning this press release, please email info@networkentertainment.ca
ON BEHALF OF THE BOARD OF DIRECTORS OF
NETWORK MEDIA GROUP INC.
"Derik A. Murray"
Derik A. Murray
Chief Executive Officer and Director
1488 Frances Street
Vancouver, British Columbia, Canada V5L 1Y9
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release contains statements regarding the Company's anticipated revenue for fiscal 2016, which constitute "forward-looking information under applicable Canadian securities laws and are based on expectations, estimates and projections as of the date of this news release. These statements are necessarily based upon management's perceptions, beliefs, assumptions and expectations of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management of the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies that could result in the forward-looking information ultimately, perhaps materially, being incorrect. Those assumptions relating fiscal 2016 projections include the Company completing its productions in development and meeting all conditions of existing film and episode purchase agreements so that revenue is recognized in fiscal 2016, distributions from past projects achieving current sales reports and expectations based on past experience on sales of Network's iconic documentaries, receipt of expected tax credits from Canadian Federal and Provincial governments, and a stable US-Canadian foreign exchange rate.
All forward-looking information in this news release involve known and unknown risks, uncertainties and other factors that are beyond the control of the Company and may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such risk factors include, but are not limited to, each of the following, as well as those risk factors discussed in the Company's most recent quarterly Management's Discussion and Analysis, a copy of which is available on SEDAR at www.sedar.com.
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?.The Company's revenues may fluctuate from quarter to quarter and year to year depending upon sales cycles, consumer demand and the timing of distributor and broadcaster license decisions, as well as the timing of when the proceeds of such licenses meet the Company's revenue recognition criteria;
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?.The Company is dependent upon and expects to continue to derive a large percentage of its revenues from key third-party domestic and international distributors and broadcasters, whose purchase/licensing patterns and own consumer markets may change, having a material impact on the Company's revenues and future business opportunities. In addition, such third parties may also offer their own products that are competitive with the Company's products;
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?.The contracts entered into with third party broadcasters and distributors may not be honoured by those third parties, or the payment terms not complied with;
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?.The Company is subject to the overall market demand for its products, namely documentary films, which may fluctuate depending on public preferences, as well as strength of the home entertainment business and overall economic and market conditions; and
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?.The timing for delivery of the Company's products to its broadcasters and distributors are subject to disruption for reasons including, but not limited to, production schedule changes, availability of production crew, travel disruptions, the personal schedules of key talent, all of which can prolong delivery times, delay the timing of release of the Company's products to the public and ultimately delay receipt of licensing and broadcasting fees.
These risk factors are not intended to represent a complete list of the factors that could affect the Company and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could vary or differ materially from those anticipated in such information. Forward-looking information is provided for the purpose of giving readers more insight into the Company's future financial and operational results, based on management's expectations. Readers are cautioned that the information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except to the extent required by applicable law.
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