Adrian J Cotterill, Editor-in-Chief
Back in May 2024 we wrote ‘Loop Media In Trouble, Reshuffles Board, Lays Off Staff’ but sadly it gets worse for the LA based Loop Media (NYSE American: LPTV) company., as after announcing disastrous 2024 fiscal third quarter earnings, to add insult to injury it has now been delisted from the Exchange NYSE American LLC.
Loop’s financial and operating results for its 2024 fiscal third quarter ended June 30, 2024 did NOT make good reading…
- Revenue in Q3 was $4.4 million, compared to $5.7 million.
- Net loss was $(5.5) million or $(0.07) per share, compared to a loss of $(7.9) million or $(0.14).
- Adjusted EBITDA (a non-GAAP financial measure defined below) was $(2.2) million, compared to $(3.7) million.
- Gross profit was $0.9 million, compared to $1.8 million.
- Gross margin was 20.9%, compared to 31.8%.
As of June 30, 2024, the Loop Media claims to have ‘approximately’ 51,000 screens across its Partner Platforms, compared to approximately 37,000 as of June 30, 2023.
Justis Kao, CEO was quoted as saying “Since my recent appointment as CEO, I have focused my attention on those areas of the business where we can look to increase revenues, leverage the Company’s fixed and variable expenses and improve profitability. As we have already undertaken significant cost-cutting measures, we will continue to streamline our operations and create further cost efficiencies for the remainder of this fiscal year and into the next. We are also continuing to work toward the expansion of our subscription offerings to our out-of-home business clients, including the introduction of a two-tier music video service offering, which will include a “primary tier” consisting of fewer than ten music video channels provided under a free ad-based service, and a “premium tier” of Loop’s full library of curated music video channels provided under a subscription service. We have also recently announced a non-music subscription offering that includes a number of live channels ranging from live sports events (including The NFL Redzone and The NFL Network) to news and lifestyle offerings which we believe will continue to support the growth opportunities of our business while further enhancing the customer experience for our business venue partners.”
As well as laying off tons of staff in May it says that further cost cutting measures now include (their words): –
- Discussions with certain third-party content providers and other licensors with a view to (i) restructuring existing or new license agreements and (ii) eliminating certain fixed fee content licenses, in each case to more closely align payments to content licensors with revenue associated with such content;
- The development and promotion of lower cost channels to reduce or eliminate third-party content license fees, where possible;
- A continued review of existing third-party vendor products and services with a view to eliminating approximately USD 750,000 in ongoing yearly costs and expenses beginning in the first quarter of fiscal year 2025.
Loop now trades as LPTV on the OTC Pink Current, on the Over The Counter Markets system.
You can read their 2024 Fiscal Third Quarter Financial Results in full here but all in all, I personally don’t think that Loop Media will likely be with us for much longer.
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