Blue Ant Media Announces Third Quarter Fiscal 2025 Results

Executive Summary

• Blue Ant Media announced its Third Quarter Fiscal 2025 results for its operating subsidiary, Blue Ant Media Inc. (BAM), showing a 7% year-over-year revenue increase and a 31% increase in Adjusted EBITDA, driven by strong growth in Global Channels & Streaming and Connected TV (CTV) advertising sales.
• The company reported a net loss from continuing operations of $11.2 million for the quarter, primarily due to one-time items including an $8.3 million goodwill impairment charge, $4.2 million in transaction-related costs, and $8.5 million in share-based compensation related to the recently closed reverse takeover (RTO).
• Operating cash flow for the first nine months of fiscal 2025 was $5.0 million, with net cash provided by operating activities (including working capital changes) at $11.1 million, which was used for debt repayment, capital expenditures, and library content investments.

Key Details

• Revenue Performance:
  • Total Revenues: $55.7 million for Q3 F2025, up 7% from $51.8 million in Q3 F2024.
  • Global Channels and Streaming: Revenue of $21.4 million (up from $13.0 million), with segment profit increasing significantly to $5.3 million (from $3.3 million).
  • Canadian Media: Revenue of $22.2 million (down from $23.5 million), with segment profit of $8.6 million (down from $9.0 million).
  • Production and Distribution: Revenue of $15.1 million (down from $17.6 million), with segment profit of $2.1 million (up from $1.3 million).
• Profitability Metrics:
  • Adjusted EBITDA: $14.6 million for Q3 F2025, a 31% increase from $11.1 million in the prior year period.
  • Income (Loss) from Continuing Operations: Loss of $11.2 million for Q3 F2025, compared to income of $2.7 million in Q3 F2024.
• One-Time Items & Impairments:
  • Goodwill Impairment Charge: $8.3 million.
  • Share-Based Compensation: $8.5 million (accelerated recognition of RSUs vesting on RTO closing).
  • Transaction-Related Costs: $4.2 million.
• Cash Flow & Balance Sheet:
  • Operating Cash Inflow (9 months): $5.0 million (down from $5.6 million in prior year).
  • Net Cash Provided by Operating Activities (9 months, incl. working capital): $11.1 million (up from $10.4 million).
  • Bank Indebtedness and Promissory Notes Less Cash: $26.1 million as of May 31, 2025.
  • Lease Liabilities: $14.2 million as of May 31, 2025.
  • Interim Production Financing: $27.1 million as of May 31, 2025.
• Corporate Structure Update:
  • The results cover BAM only and do not incorporate results from businesses retained by the Company (Jam Filled Entertainment, Proper Television, and Insight Productions) in connection with the reverse takeover that closed on August 1, 2025.

Notable Quotes

• "Blue Ant delivered a solid third quarter driven by significant growth in our Global Channels & Streaming segment. Contribution from our Connected TV digital ad solutions business grew significantly, reflecting the convergence of content, commerce and advertising on the biggest screen in the house." — Michael MacMillan, CEO
• "Our recently completed reverse takeover has further increased Blue Ant's dry powder, which will enable us to invest in key areas to accelerate growth, both organically and through acquisitions, while enhancing the scale and diversity of our studio." — Michael MacMillan, CEO