Digital media and social video broadcaster Brave Bison Group plc (LON:BBSN) slashed its losses last year as revenues jumped and its cost-cutting strategy kicked in.
As it flagged in last month’s trading update, the group made a gross profit of £7.7mln in 2016, up from £6.1mln the year before on net revenue that rose 22% to £14.6mln (2015: £17.7mln).
Growth in the first half of the year was particularly strong with the firm making the most of the Euro 2016 football tournament last June.
On the cost-cutting side of things, Brave Bison closed several smaller offices in the period and now has just three bases, while it also trimmed its staff numbers.
That helped adjusted underlying losses (EBITDA), which exclude exceptional items, restructuring costs and share-based payments, narrow to £1.8mln from £8.7mln a year earlier.
Asia Pacific continues to be a key region for the company, with staff numbers in the area increasing during the year. Brave Bison Asia Pacific was also set up in 2016 to help the group exploit what it expects to be a lucrative market going forward.
“Brave Bison continues to deliver on the strategy set out by the board - moving from a third-party technology provider to a social video broadcaster, coupled with a continuous programme of cost efficiency,” said chief operating and finance officer Kevin Deeley.
“Our aim is to create a higher margin business from further content monetisation opportunities and with 2016 investments starting to move the business up the value chain to intellectual property rights ownership.”
While 2016 did see the company make several big changes – including a new name – as it heads towards profitability, the turnaround is far from complete and may take a little longer than first thought.
As it noted in February, revenues this year are likely to be substantially lower after two material contracts weren’t renewed towards the end of 2016.
The departure of two senior executives, including former chief executive Ashley MacKenzie, hasn’t helped either, although the search for MacKenzie’s successor is “well underway”.
The group ended the year with £7.1mln in cash after topping up its coffers early last year with a £10mln fundraise.
The board added that trading so far in 2017 has been in line with management expectations.
Yellowstone Studios
In a separate announcement, the digital media specialist also unveiled its new state-of-the-art broadcasting facility, Yellowstone Studios.
The studios, located in Hoxton, London, will be the home of Brave Bison’s multi-platform football network, Slash Football.
It is equipped with a green screen compatible studio and, importantly for the football side of things, comes complete with a football pitch.
The popular YouTube football show ‘The Last 5’ has been recording at the studios since the beginning of the month, the company added.
“Opening the studio marks a significant step change in Brave Bison's development,” said chief creative officer Will Pyne.
“It gives us a competitive edge over other video content producers, providing us with a creative and cultural hub to take our own programming to new levels of scale, quality and frequency. Just as importantly, we now have a space for brands and creators to test and explore ideas at the drop of a hat.”
Shares gained 2% in early deals on Friday to trade at 1.15p.
--Updates for Yellowstone Studios announcement and share price--