TORONTO and VANCOUVER, British Columbia, June 10, 2019 (GLOBE NEWSWIRE) -- WOW! Unlimited Media Inc. (“WOW!” or the “Company”) (TSX-V: WOW/OTCQX: WOWMF) announced today that WOW!'s subsidiary, Frederator Networks, Inc. (“Frederator”), and ADME (CY), Ltd. (“ADME”) have agreed to certain changes to their agreement pursuant to which Frederator distributes ADME's collection of channels on YouTube. Frederator has been managing and distributing ADME’s YouTube channels for over two years. As the current distribution agreement between the parties approaches its maturity, ADME and Frederator have agreed to transition certain YouTube channels back to ADME to be managed internally by ADME, with Frederator continuing to distribute and manage certain other channels. Under the terms of the new distribution agreement, the ADME channels being retained by Frederator will be subject to cancellation by ADME on 30-days advance notice for each such channel. Additionally, Frederator will have the opportunity to distribute and manage certain new ADME YouTube channels as they are developed. The ADME group of channels constitutes the largest distribution agreement for Frederator. While ADME has agreed to retain certain channels within Frederator and to potentially add newer channels, the Company has conservatively estimated the effect on its previous guidance assuming the loss of 100% of the channels owned by ADME for the second half of FY2019 and is thereby revising full-year 2019 guidance as follows:
Gross Revenue: reduction from $100 million down to $85 million
Operating EBITDA: reduction from $3 - $4 million down to $2.4 - $3.4 million
Arthur Mamedov, COO of ADME/TheSoul Publishing (TSP), stated: “We at TSP are very excited to continue working with Frederator on some of our media brands. Working with Frederator over the years and getting all the support has always been incredibly valuable and hopefully we will all see many awesome projects arising from this cooperation moving forward!”
“We are proud of Frederator’s role in helping to build ADME’s tremendous growth over the past couple of years and we are looking forward to continuing our relationship and incubating new and exciting channels. ADME’s success is yet another example of Frederator’s proven ability to help generate explosive audience growth on YouTube. Going forward, Frederator intends to deploy this audience-building expertise to grow its higher-margin Owned and Operated channels where the Company retains 100% of YouTube revenues”, added Fred Seibert, CEO of Frederator.
Conference Call
The Company plans to host a conference call on June 10, 2019 at 4:30 PM (EST). To participate in or listen to the call, please dial the following number:
- Toll Free: 1 (855) 336-7594
- Conference ID number: 5064107
About WOW! Unlimited Media Inc.
WOW! is creating a next generation kids and youth entertainment business by focusing on creating top end content, and by building and partnering with engaging platforms. The Company's key assets include: Frederator Networks Inc., which includes the world's #1 digital animation network, Channel Frederator Network, Frederator Studios, an animation production company, as well as video-on-demand channels on digital platforms; and one of Canada's largest, multi-faceted animation production studios, Mainframe Studios, which produces computer-generated animated television series and long-form animated features.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: WOW! Unlimited Media Inc.
Disclaimer
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "possibilities", "becomes", "to be", "should" or similar words, including negatives thereof, suggesting future outcomes. These statements relate to future events or future performance and reflect management’s expectations or beliefs regarding future events. In particular, this news release contains forward-looking statements relating to: (i) WOW!’s business strategy and objectives; (ii) the market in which WOW! operates; (iii) WOW!’s potential future revenue, EBITDA and long-term vision; (iv) future operational and financial performance; (v) the potential to add new channels to manage and distribute; and (vi) WOW!’s proposed strategies for global rollout and platform growth. The reader is cautioned that such forward-looking statements may prove to be incorrect.
This news release does not constitute a recommendation regarding the securities of WOW!. Various factors and assumptions, certain of which are beyond WOW!'s control, are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to WOW!, including information obtained from third party industry analysts and other third party sources. In some instances, material assumptions and material factors are presented elsewhere in this news release in connection with the forward-looking statements. Readers are cautioned that the following list of material factors and assumptions is not exhaustive. Specific material factors and assumptions include, but are not limited to: (i) the performance of WOW!'s business, including current business and economic trends; (ii) capital expenditure programs and other expenditures by WOW! and its customers; (iii) dependence on key personnel and the ability of WOW! to retain and hire qualified personnel; (iv) the ability of WOW! to market its content successfully to existing and new customers; (v) the ability of WOW! to retain customers; (vi) the ability of WOW! to obtain timely financing on acceptable terms; (vii) a stable competitive environment; (viii) WOW!’s ability to anticipate and adapt to changes in technology and product consumption patterns; (ix) a stable industry regulatory environment; (x) ongoing relationships with WOW!’s distributors and business partners; and (xi) competitive forces within the entertainment industry
Forward-looking statements are not a guarantee of future performance and involve a number of risks and uncertainties, some of which are described herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, both generic and specific, and a number of factors could cause WOW!'s actual performance and financial results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, those contained herein and those contained in WOW!’s annual information form for the year ended December 31, 2017 and the management’s discussion and analysis for the year ended December 31, 2018, both of which are available on SEDAR at www.sedar.com. Any forward-looking statements are made as of the date hereof and, except as required by applicable securities laws, WOW! does not intend, and does not assume any obligation to update the forward-looking statements contained herein. Certain information contained herein is based on, or derived from, information provided by independent third-party sources. WOW! believes that such information is accurate and that the sources from which it has been obtained are reliable. WOW! cannot guarantee the accuracy of such information and has not independently verified the assumptions on which such information is based. WOW! does not assume any responsibility for the accuracy, sufficiency or completeness of such information. Neither WOW!, nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this news release. Neither WOW!, nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this news release by you or any of your representatives or for omissions from the information in this news release. Readers are cautioned not to place undue reliance on forward-looking statements.