Full year results for the twelve months ended 31 December 2017
Brave Bison Group plc (AIM: BBSN), the social video company today announces its audited full year results for the twelve months ended 31 December 2017.
Since the period end on 31 December 2017, the Group continues to trade in line with management expectations.
- Net Revenue decreased by 48% to £9.1 million (2016: £17.7 million). £5.7 million of this was due to a low margin advertising revenue product that was terminated by the Company in Q1 2017.
- Fee Based Services revenues were impacted by loss of two major clients in Q4 2016.
- CEO Claire Hungate appointed Q3 2017, prompting a strategic shift in the Company’s focus to drive the Company towards profitability – gearing Brave Bison for growth in 2018.
- Specialist Board and management appointments made to underpin the transformation.
- EBITDA loss reduced by 51% to £1.7 million (2016: £3.5 million).
- Significant improvement towards profitability - operating EBITDA loss before restructuring costs, share based payments and foreign exchange reduced 84% to £0.5 million (2016: £3.2 million).
- Impact of new strategy, focused on international growth markets and a range of profitable social video work with blue-chip brands, started to have a positive impact in the financial year: o
- Admin expenses decreased by 32% to £8.7 million (2016: £12.9 million) as a result of a reduction in headcount and closure of a number of foreign offices as the business re-focuses on EMEA and APAC regions. Headcount at year-end including contractors has reduced by 32% to 55 (2016: 81).
- Increase in commissioned content revenues driven by direct to brand deals in APAC.
- Commercialisation of Slash Football (Papa Johns and SEGA), and Rebel FC (Under Armour) in Q4 2017.
- Monetisation of 11 Facebook owned and operated channels which had over 3.8 billion views in December 2017.
- Signing of a two-year strategic partnership deal with Shell in Q4 2017.
- Non-cash £12.2 million impairment charge relating to technology software assets and customer relationship intangible assets from prior acquisitions.
- Cash outflow from operating activities has reduced by 66% to £1.5 million (2016: £4.5 million) and the Group had £4.8 million cash at the year end.
- Top 10 Global Online Media and Entertainment Publisher in December 2017 and January 2018 (source: Tubular Labs).
- Repeat commissioned content deals with Air Nippon Airways and Procter & Gamble in APAC.
- Appointment of specialist consultant in APAC to expand Brave Bison’s territorial footprint and find new revenue streams.
- Appointment of new APAC General Manager and APAC Creative Director to implement growth plan.
- In advanced discussions regarding a new strategic partnership contract with a multi-national Information Technology and Peripheral producer in APAC and EMEA.
- Starting content production for Shell and PGA Tour America – proving the strategic partnership model.
- Slash Football commercial deal with Marriott Courtyard and Baiteze Squad deal with Puma in Q1 2018.
- Analysis and strategy completed in order to launch a portfolio of new owned & operated channels in early Summer 2018.
Claire Hungate, Chief Executive Officer, commented:
"Brave Bison is a Social Video company. We work with brands, creators and platforms to create, distribute and monetise video that’s fit for a digital world. As a social video company we sit at the epicentre of the consumer entertainment marketplace; consumers are moving to social, social is moving to smart phone and smart phone internet traffic is predominantly video based. As you would expect advertising revenue is following with 5.7% of global advertising revenue being spent on social media video by 2019.
With our unique end to end service offering Strategy - Origination - Distribution - we can provide brands, creators and IP owners with the right solutions for them.
Platform and audience insight are key; our expertise on digital platforms gives us the intelligence to create and and execute 'audience first' content strategies for brands.
We know how to create video that talks to a generation of curious viewers who grew up holding smartphones, glued to social media and not TV sets.
Our owned and operated social media communities across Facebook, Instagram and You Tube reach over 850 million people a week which gives us our own brand safe distribution network. This combination of services and skills means we are well placed to benefit from a digital first and video first ecosytem and as we move into 2018 we are committed to achieving profitability."
For the full Annual Report for 2017, please click here.
For further information, contact:
Brave Bison Group plc
Claire Hungate, Chief Executive Officer via Redleaf Communications
Allenby Capital Limited
Virginia Bull / Jeremy Porter
Tel: 020 3328 5656
Tel: 020 3757 6880