Hollywood Media Corp. (HOLL, Financial) filed Quarterly Report for the period ended 2009-03-31.
Hollywood Media Corp. formerly Hollywood.com Inc. is a leading online provider of news information and ticketing covering the entertainment and media industries. On the strength of its 17-year history in developing comprehensive entertainment industry databases as well as its major strategic partners and unique content the Company has launched a network of consumer and b2b businesses. The Company's consumer sites include Hollywood.com Broadway.com and an interest in MovieTickets.com. Hollywood Media Corp. has a market cap of $30.9 million; its shares were traded at around $1 with and P/S ratio of 0.3.
Broadway Ticketing net revenues were $20.2 million and $25.3 million Q1-09 and Q1-08, respectively, a decrease of $5.1 million, or 20%. The decrease in Broadway Ticketing net revenues in Q1-09 from Q1-08 was primarily attributable to a decrease in number of tickets sold of $5.3 million, a decrease in net sales of hotel and dinner packages of $0.2 million, decreases in sales of cancellation insurance of $0.1 million, decreases in sponsorship sales of $0.1 million, decreases in sales related to Theatre.com of $0.1 million and a decrease in revenue related to a change in gift certificate policy of $0.1 million, partially offset by increases in ticket prices by theaters of $0.6 million and increases in service fees on individual ticket sales of $0.2 million.
Ad Sales division net revenues by our CinemasOnline business were $0.8 million for Q1-09 as compared to $1.3 million for Q1-08, a decrease of $0.5 million or 38%. The decrease in Ad Sales revenues in Q1-09 from Q1-08 is primarily due to decreases in the brochure and web advertising revenues of $0.3 million along with a decrease of $0.2 million revenues in the plasma business.
Net revenues from our Intellectual Properties division were $0.3 million for Q1-09 as compared to $0.4 for Q1-08, a decrease of $0.1 million or 25%. The Intellectual Properties division generates revenues from several different activities including book development and licensing and intellectual property licensing. Revenues vary quarter to quarter depending on the timing of the delivery of the manuscripts to the publishers. Revenues are recognized when the earnings process is complete and ultimate collection of such revenues is no longer subject to contingencies. The Intellectual Properties division revenues do not include our 50% interest in NetCo Partners, which is accounted for under the equity method of accounting and under which Hollywood Media s share of the income is reported as Equity in Earnings of Unconsolidated Investees (discussed below).
Cost of revenues - ticketing. Cost of revenues - ticketing was $17.0 million for Q1-09 compared to $21.0 million for a decrease of $4.0 million, or 19%. Cost of revenues-ticketing consists primarily of the cost of tickets and credit card fees for the Broadway Ticketing segment, partially offset by rebates received from certain producers based on exceeding certain ticketing sales goals. As a percentage of ticketing revenue, Cost of revenues-ticketing was 84% and 83% for Q1-09 and Q1-08, respectively.
The decrease in Cost of revenues - ticketing in Q1-09 from Q1-08 was primarily attributable to the following: a decrease in cost of revenue due to a reduction in tickets sold of $4.5 million, a decrease in cost of revenue due to an increase in advertising revenue from shows of $0.2 million, offset in part by an increase in cost of revenues of $0.5 million attributable to ticket price increases by theaters, and a $0.2 million attributable to increases in unsold inventory.
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Hollywood Media Corp. formerly Hollywood.com Inc. is a leading online provider of news information and ticketing covering the entertainment and media industries. On the strength of its 17-year history in developing comprehensive entertainment industry databases as well as its major strategic partners and unique content the Company has launched a network of consumer and b2b businesses. The Company's consumer sites include Hollywood.com Broadway.com and an interest in MovieTickets.com. Hollywood Media Corp. has a market cap of $30.9 million; its shares were traded at around $1 with and P/S ratio of 0.3.
Highlight of Business Operations:
Beginning in September 2009, R&S Investments will be contractually obligated to make periodic earn-out payments equal to the greater of (i) 10 percent of gross revenue and (ii) 90 percent of EBITDA (as defined in the purchase agreement) for the Hollywood.com Business until the full earn-out is paid. If a change of control of Hollywood.com occurs before the earn-out is fully paid, the remaining portion of the earn-out would be payable immediately upon such a change of control, up to the amount of consideration received by R&S Investments less related expenses. If the consideration in such a change of control is less than the remaining balance of the earn-out, then the surviving entity which owns the Hollywood.com Business will be obligated to pay the difference in accordance with the same earn-out terms. In addition, if the Hollywood.com Business is resold prior to August 21, 2011, Hollywood Media will also receive 5 percent of any proceeds above $10.0 million. Pursuant to the purchase agreement, Hollywood Media was required to place $2.6 million into an escrow account to fund any negative EBITDA of the Hollywood.com Business through August 21, 2010. There was $1.8 million disbursed to the Hollywood.com Business through March 31, 2009, leaving a balance of $0.8 million in the escrow.Broadway Ticketing net revenues were $20.2 million and $25.3 million Q1-09 and Q1-08, respectively, a decrease of $5.1 million, or 20%. The decrease in Broadway Ticketing net revenues in Q1-09 from Q1-08 was primarily attributable to a decrease in number of tickets sold of $5.3 million, a decrease in net sales of hotel and dinner packages of $0.2 million, decreases in sales of cancellation insurance of $0.1 million, decreases in sponsorship sales of $0.1 million, decreases in sales related to Theatre.com of $0.1 million and a decrease in revenue related to a change in gift certificate policy of $0.1 million, partially offset by increases in ticket prices by theaters of $0.6 million and increases in service fees on individual ticket sales of $0.2 million.
Ad Sales division net revenues by our CinemasOnline business were $0.8 million for Q1-09 as compared to $1.3 million for Q1-08, a decrease of $0.5 million or 38%. The decrease in Ad Sales revenues in Q1-09 from Q1-08 is primarily due to decreases in the brochure and web advertising revenues of $0.3 million along with a decrease of $0.2 million revenues in the plasma business.
Net revenues from our Intellectual Properties division were $0.3 million for Q1-09 as compared to $0.4 for Q1-08, a decrease of $0.1 million or 25%. The Intellectual Properties division generates revenues from several different activities including book development and licensing and intellectual property licensing. Revenues vary quarter to quarter depending on the timing of the delivery of the manuscripts to the publishers. Revenues are recognized when the earnings process is complete and ultimate collection of such revenues is no longer subject to contingencies. The Intellectual Properties division revenues do not include our 50% interest in NetCo Partners, which is accounted for under the equity method of accounting and under which Hollywood Media s share of the income is reported as Equity in Earnings of Unconsolidated Investees (discussed below).
Cost of revenues - ticketing. Cost of revenues - ticketing was $17.0 million for Q1-09 compared to $21.0 million for a decrease of $4.0 million, or 19%. Cost of revenues-ticketing consists primarily of the cost of tickets and credit card fees for the Broadway Ticketing segment, partially offset by rebates received from certain producers based on exceeding certain ticketing sales goals. As a percentage of ticketing revenue, Cost of revenues-ticketing was 84% and 83% for Q1-09 and Q1-08, respectively.
The decrease in Cost of revenues - ticketing in Q1-09 from Q1-08 was primarily attributable to the following: a decrease in cost of revenue due to a reduction in tickets sold of $4.5 million, a decrease in cost of revenue due to an increase in advertising revenue from shows of $0.2 million, offset in part by an increase in cost of revenues of $0.5 million attributable to ticket price increases by theaters, and a $0.2 million attributable to increases in unsold inventory.
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