Revenues Up 98%, Operating Expenses Down 44%, EBITDA Improved 75%
TORONTO, May 30, 2012 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media distribution company, today announced its results for the First Quarter ending March 31st 2012. Revenue for the first quarter was $546,822, 98% higher than the revenue for the same period in 2011 and 20% higher than the previous quarter. This quarter over quarter growth is significant as Q1 is an historically slow quarter.
Advertising led the way with Q1 revenues of $148,360, up 51% over ad revenues in the previous quarter. Other significant revenue growth is primarily a result of the greater use of DMDS for music video delivery by the major and independent record labels in the US and Canada. Music video revenues were up 37% quarter over quarter and 283% year over year. Overall, there was strong growth in all divisions and in all territories with U.S. revenues up 280% year over year, Canada growing by 14% plus new revenues for music audio delivery in Australia and New Zealand. The DMDS Awards business continues to grow with revenues up 61% over the same period in 2011.
Total operating expenses for the quarter ended March 31, 2012 was 44% lower than the same period in the previous year. EBITDA improved 75% over the same period of 2011.
"The trend of improving revenue, EBITDA and cost controls continued in the first quarter of this year, resulting in the 4th consecutive quarter of EBITDA growth. All divisions are focused on growing profitably and they have each contributed positively, once again, to this quarter's results," said Gary Moss, President and CEO YANGAROO Inc. "The first tranche of the current round of financing has been received, with additional funds expected shortly. We appreciate the continued support from both the new and current investors, which has enabled YANGAROO's progression towards profitability. We believe these positive results are a testament to the hard work and dedication of the entire YANGAROO team."
Summary of operating results for the periods ended March 31st:
| $CDN | First Quarter | |
| 2012 | 2011 | |
| Revenue | 546,822 | 275,799 |
| Interest income | 544 | 374 |
| EBITDA | (309,547) | (1,248,038) |
| Net loss for the period | (670,609) | (1,356,571) |
| Loss per share (basic & diluted) | (0.01) | (0.01) |
The full text of the financial statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com.
About YANGAROO:
YANGAROO is a company dedicated to digital media management. YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients. The YANGAROO Awards platform powers many of North America's major awards shows.
Named one of Canada's Top 100 Tech Companies by Canadian Business, YANGAROO has offices in Toronto, New York, Los Angeles, and Dallas. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF.
The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Please contact Gary Moss at 416-534-0607 ext.111 or visit www.yangaroo.com.
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