Click here to close now.


News Feed Item

Mood Media Reports Second Quarter 2014 Financial and Operating Results

-- Integration Activities Positively Impacted Operating Cost Structure

-- On Track to Achieve Annualized Cost Savings in the Range of $8 to $10 Million by Year-End 2014 Driven by Efficiency Program Synergies

TORONTO, Aug. 15, 2014 /PRNewswire/ -- Mood Media Corporation ("Mood Media" or "the Company") (ISIN: CA61534J1057) (TSX:MM) (LSE AIM:MM), the world's largest integrated provider of in-store customer experience solutions, today reported results for the second quarter of 2014 and updated its strategic and operational plans.

Recent Highlights

  • Achieved second quarter revenues of $120 million and EBITDA of $24.0 million;
  • Continued to successfully implement global integration and consolidation activities; based upon strong results to date, finalizing synergy target to range of $8 to $10 million in annualized cost savings by year-end 2014;
  • Expanded Local Sales organization and delivered new products;
  • Reiterated 2014 financial outlook.

"In the second quarter, we continued to relentlessly focus on executing our strategic plan and further strengthened our platform for long-term sustainable growth," said Steve Richards, President and CEO of Mood Media. "Over the past 10 months we have worked steadfastly to engender a culture of accountability, and the entire Mood Media team is focused on improving the efficiency and consistency of our business. Notably, we are making significant progress on our strategies surrounding Local Sales, product and solutions development, and partnership expansion. During the second quarter, we continued to build out our Local Sales teams in North America and the international markets, launched new compelling services called Mood Mix and Mood Social Wifi and advanced our mobile solutions, all of which we expect will contribute to our future growth. Our cost savings initiatives are also beginning to deliver tangible returns and, based upon our strong execution to date, we are finalizing our annualized cost savings expectations to a range of $8 to $10 million by year-end 2014.

"We are gaining important traction with our visuals and mobile services," continued Mr. Richards. "In the first half of 2014 we signed our largest U.S. contracts to date and launched our first large-scale mobile promotion in conjunction with a major Premier brand. This positive momentum underscores the strength of our strategy and the results our focused efforts are producing. We believe we have taken consequential steps forward that will allow Mood Media to deliver on its full potential for both our clients and stakeholders. While the complete transformation of Mood Media will be an ongoing effort, we are energized as we take solid strides toward achieving these goals and targets. We look forward to continued success as we focus on building a great Company and realizing the potential we have before us."

Second Quarter Financial Results
The Company reported Q2 revenues of $120 million and EBITDA of $24 million. Net loss per share from continuing operations was ($0.18) compared with net loss of ($0.05) in the prior-year period. The Company's second quarter revenue and EBITDA performance was impacted by the sale of its Latin American residential operation, the revised terms of its affiliate agreement, lower equipment and recurring sales, and lower performance at Technomedia and BIS. These factors were partially offset by the benefits of integration and synergy programs that produced a reduction of $3.5 million in operating expenses in its North American and International operations for the quarter; however, these operating expense reductions were partially offset by increases due to the foreign exchange impact and expenses in the Company's BIS subsidiary.

Other expense totaled $10 million in the quarter compared with $8 million in the prior year. Other expense in the quarter related to restructuring, transaction and settlement expenses and was partially offset by gains on sale of non-core assets. Restructuring expense pertains to the Company's integration and synergy program. Transaction and settlement expenses relate to the cost of resolving amounts in connection with past acquisitions.

Key Performance Indicators









Audio sites









Visual sites









Total sites









Audio ARPU

$ 49.20

$ 47.19

$ 46.25

$ 45.65

$ 45.62

$ 46.17

$ 45.35

$ 45.17

Visual ARPU


$ 89.78

$ 83.42

$ 89.21

$ 81.27

$ 84.30

$ 84.59

$ 85.08

Blended ARPU

$ 50.45

$ 48.28

$ 47.25

$ 46.87

$ 46.64

$ 47.23

$ 46.50

$ 46.40

Audio gross additions









Visual gross additions









Total gross additions









Audio monthly churn









Visual monthly churn









Total monthly churn









In the second quarter, the number of total Company-owned sites declined by 1.6% year-over-year driven by a 2.0% decline in the number of audio sites and a 14.1% increase in the number of visual sites. The number of audio sites decreased moderately in North America and in its International operation. The number of visual sites increased in both operations.

Blended ARPU declined by 1.8% year-over-year in the second quarter to $46.40 per month and remained stable compared with the first quarter ARPU of $46.50. Audio ARPU decreased by 2.3% relative to the prior year to $45.17 while visual ARPU rose by 2.0% year-over-year to $85.08. Audio ARPU declined in North America and remained stable in its International operations. Visual ARPU increased in both North America and in its International operations.

Total monthly churn in the second quarter was 0.9% per month reflecting an improvement over first quarter churn of 1.1%. Audio churn of 1.0% per month improved relative to the first quarter in International operations while churn in North America remained stable. Visual churn remained stable at 0.4%.

Conference Call
As previously announced, the Company will hold a conference call on August 15 at 8:00 a.m. Eastern Time to discuss its results and respond to questions from the investment community. The call can be accessed by telephone by dialing 416-764-8658, or 1 888-886-7786 for international callers. Listeners are advised to dial in at least five minutes prior to the call.

This earnings release, which is current as of August 14, 2014, is a summary of our second quarter results, and should be read in conjunction with our second quarter 2014 MD&A and Consolidated Financial Statements and Notes thereto and our other recent filings with securities regulatory authorities in Canada and the United Kingdom.

The financial information presented herein has been prepared on the basis of IFRS for interim financial statements and is expressed in United States dollars unless otherwise stated.

This news release includes certain non-IFRS financial measures. Mood Media uses these non-IFRS financial measures as supplemental indicators of its operating performance and financial position. These measures do not have any standardized meanings prescribed by IFRS and therefore may not be comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance calculated in accordance with IFRS.

In this earnings release, the terms "we", "us", "our", "Mood Media" and "the Company" refer to Mood Media Corporation and our subsidiaries.

Mood Media Corporation

For the three and six months ended June 30, 2014

In thousands of US dollars, unless otherwise stated

Three months ended

Six months ended


June 30, 2014

June 30, 2013

June 30, 2014

June 30, 2013

Continuing operations








Cost of sales (excludes depreciation and amortization)





Operating expenses





Depreciation and amortization





Share-based compensation






Other expenses






Foreign exchange loss (gain) on financing transactions





Finance costs, net






Loss for the period before taxes





Income tax charge (credit)






Loss for the period from continuing operations





Discontinued operations

Loss after tax from discontinued operations






Loss for the period





Attributable to:

Owners of the parent





Non-controlling interests









Net loss per share

Basic and diluted






Basic and diluted from continuing operations






Basic and diluted from discontinued operations






About Mood Media Corporation
Mood Media Corporation (TSX:MM / LSE AIM:MM), is one of the world's largest designers of in-store consumer experiences, including audio, visual, interactive, scent, voice and advertising solutions. Mood Media's solutions reach over 150 million consumers each day through more than half a million subscriber locations in over 40 countries throughout North America, Europe, Asia and Australia.

Mood Media Corporation's client base includes more than 850 U.S. and international brands in diverse market sectors that include: retail, from fashion to financial services; hospitality, from hotels to health spas; and food retail, including restaurants, bars, quick-serve and fast casual dining. Our marketing platforms include 77% of the top 100 retailers in the United States and 97% of the top 50 quick-serve and fast-casual restaurant companies.

For further information about Mood Media, please visit

Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would" and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to important assumptions, including without limitation, expected growth, results of operations, performance, financial condition, strategy and business prospects and opportunities. While Mood Media considers these factors and assumptions to be reasonable based on information currently available, they are inherently subject to significant uncertainties and contingencies and may prove to be incorrect.

Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: the impact of general market, industry, credit and economic conditions, currency fluctuations as well as the risk factors identified in Mood Media's management discussion and analysis dated Aug. 14, 2014 and Mood Media's annual information form dated March 28, 2014, both of which are available on

Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Mood Media.

Forward-looking statements are given only as at the date hereof and Mood Media disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

Mood Media Corporation presents EBITDA information as a supplemental figure because management believes it provides useful information regarding operating performance. EBITDA is not a recognized measure under International Financial Reporting Standards ("IFRS"), does not have standardized meaning, and is unlikely to be comparable to similar measures used by other companies. Accordingly, investors are cautioned that EBITDA should not be construed as an alternative to net earnings or (loss) determined in accordance with IFRS as an indicator of the financial performance of Mood Media or as a measure of Mood Media's liquidity and cash flows. For a reconciliation of EBITDA to the Consolidated Statements of Income (Loss), please see Footnote 18 to the Interim Consolidated Financial Statements which provides Segment Information.

For further information:

Investor Inquiries

Randal Rudniski
Mood Media Corporation
Tel: +1-512-592-2438
Email: [email protected]

Dominic Morley
Panmure Gordon (UK) Limited

North America Media Inquiries
Sumter Cox
Mood Media Corporation
Senior Director of Marketing and Communications
Tel: +1-803-242-9147


More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...