Network Media Group Announces Record Quarterly Revenues and Profits for Q2 2019

VANCOUVER, July 23, 2019 /CNW/ - Network Media Group Inc. (TSX: NTE.V) (OTCMKTS: NMGGF) ("Network" or "the Company") today reported record financial results for the quarter ended May 31, 2019 ("Q2 2019"), including revenues of $4.64M, net income of $1.70M and Adjusted EBITDA of $1.95M. The financial statements and related Management's Discussion and Analysis ("MD&A") can be viewed on SEDAR at www.sedar.com.

CFO Darren Battersby stated: "From the outset, Network's management team's long-term strategy has been to focus on building a global content company focused on producing premium content in both documentaries and documentary series for the ever-expanding global content marketplace.  Our results from this quarter are reflective of this strategy as demonstrated by increased production volumes over the past 12 months."

The operational highlights for Network's three months ended Q2 2019 include the following:

• Record Revenue. Network recorded revenues of $4.64M in Q2 2019 compared to $776,619 in Q2 2018, up 597%;
  
  
• Record Net Income. Network recorded net income of $1.70M in Q2 2019 compared to $205,000 in Q2 2018, up 830%;
  
  
• Strong Backlog. Contracted future revenues of $15M to be recorded in the next six months;
  
  
• Royalty Revenues. Network recorded royalty revenues of $89,643 in Q2 2019;
  
  
• Work in Progress/Investments. $4.44M of additional film and television productions;
  
  
• Winner of Three Leo Awards. I Am MLK Jr. named Best Documentary, Best Picture Editing and Best Musical Score;
  
  
• Nominated for U.S. Critics' Choice Real TV Awards for our Punk series that premiered on Epix;
  
  
• Named to the 2019 Realscreen Global 100 List, an annual compilation of the best global productions companies working in the non-fiction and unscripted visual content industry.

The financial results for Network's three months ended Q2 2019 include the following highlights:

• Revenues of $4.64M (2018 - $776,619)
  
  
• Net income of $1.70M - $0.02 per share (2018 – $205,000 - $0.00 per share)
  
  
• Adjusted EBITDA of $1.95M - $0.03 per share (2018 –$389,111 - $0.01 per share)

The Company has a full slate of projects in production and preproduction which will be announced over the coming months and will contribute to Network's continued financial success and global brand recognition.

Network also announces today that it has granted incentive stock options to its directors, consultants, officers and employees for the right to purchase up to an aggregate 1,710,000 Common Shares of the Company.  These options are exercisable at a price of $0.13 per share for a term of five (5) years.  The terms of the options granted are in accordance with the Company's Fixed Share Option Plan approved by its shareholders on July 15, 2019.  The option grants are subject to TSX Venture Exchange approval.

About Network Entertainment
Network Media Group is the parent company of Network Entertainment Inc.
Network Entertainment is a creatively driven, boutique film and television production company that creates, finances, produces, and delivers award winning programming to television, digital platforms and movie audiences around the world. The Network premium brand of content delivers world class casts, with visually cinematic and richly crafted storytelling, which is consistently embraced by both audiences and critics alike, garnering awards, record ratings and unparalleled media coverage for Network and its partners.

Network has a full slate of films and series in current production, including a feature documentary on Jackie Kennedy Onassis, and a multi-part documentary series for YouTube on Artificial Intelligence in partnership with Robert Downey Jr. The Company's most recent releases include Punk, a 4-part series for Epix, Executive Produced by John Varvatos and Iggy Pop, and the feature documentary I Am Richard Pryor, which premiered at this year's SXSW Film Festival. Network's latest documentary, I Am Patrick Swayze, will premiere at the San Antonio Film Festival in August. Among the Company's many accolades, Network was named to the Realscreen Global 100 List, an annual compilation of the best global production companies working in the non-fiction and unscripted visual content industry.

Network's broadcast and distribution partners include: A&E, CBC, Crave, Epix, Fremantle, HBO Canada, Lionsgate, National Geographic, Paramount Network, Thunderbird, and YouTube Premium. The Company's work has been recognized by the Academy Awards, the Emmys, the Leos, Realscreen Awards, the Gemini Awards, the Los Angeles Film Festival, Washington D.C. Silver Docs, Seattle International Film Festival, Tribeca Film Festival, Hawaii International Film Festival, Houston International Film Festival, Vancouver International Film Festival, Banff Television Festival, and the International Film and Television Festival of New York.

For additional information on Network Entertainment Inc., visit www.networkentertainment.ca

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
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. These statements are necessarily based upon management's perceptions, beliefs, assumptions and expectations, 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 uncertainties and contingencies that could result in the forward-looking information ultimately, perhaps materially, being incorrect. 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 those expressed or implied by such forward looking information. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof.    

SOURCE Network Media Group Inc.

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