Kew posts overall revenues of $260.3M for fiscal 2017

CEO Steven Silver told investors the company's future success will hinge on its ability to realize the synergies between its growing number of production and distribution assets.
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Kew Media reported its Q4 and year-end financial results Tuesday, with CEO Steven Silver telling investors that the company’s future success will hinge on its continued ability to make strategic acquisitions to bolster its production and distribution assets and “get companies talking across the group.”

For Q4, Kew posted revenues of $94.5 million (comprised of $65.3 million from production and $29.2 million from distribution) and gross profits of $19.4 million ($7 million in production, $12.4 in distribution), which Silver said was “consistent with the company’s expectations.” Adjusted EBITDA for the quarter ending Dec. 31, 2017 was $6.8 million.

For fiscal 2017, the media conglomerate posted revenues of $260.3 million ($177.1 million in production, $83.2 million in distribution) and gross profits of $60.1 million ($32.8 million in production, $27.3 million in distribution). Adjusted EBITDA for the year was $19.7 million.

Kew highlighted series such as Sienna Films’ Cardinal (CTV), Bristow Global Media’s Hockey Wives (W Network), Frantic Films’ Baroness von Sketch Show (CBC) and Architect Films Home to Win (HGTV Canada) as key drivers of production revenue for the year, while on the distribution front the company also highlighted Canadian series such as Slasher19-2, Heartland, 21 Thunder and Frankie Drake.

Silver said that, with more than a year now passed since Kew announced its acquisition of five production companies and the L.A. and London, U.K.-based distribution company Content Media Corporation (now called Kew Distribution), the synergies between the companies production and distribution businesses have created the types of opportunities that management had hoped for. “We’re finding that distribution is able to help production get commissions from broadcasters by marrying them up,” said Silver. “So, when Kew Distribution can see that there is real demand for product in the market, it’s able to translate that demand and put that show into production,” he said.

Silver added that, going forward, the future success of the company will be based on whether it can efficiently identify and acquire production and distribution assets, which can then be brought under the Kew umbrella. The goal, he said, is to bring the companies under the Kew banner, “get them talking amongst themselves,” and enable the intel gathered by Kew’s distribution arm to inform the decisions made by its production subsidiaries, and vice versa.

Kew Media announced its arrival in the media landscape in February 2017 with news that it would acquire unscripted-focused Canadian production companies BGM, Architect, Frantic, Media Headquarters Film and TV and Our House Media, as well as Content Media. Since then, the company has also branched into scripted with the acquisition of Sienna Films in November and the addition of industry veteran Carrie Stein in the role of EVP, global scripted series later that month. Kew also added to its unscripted operations in October with the acquisition of London, U.K.-based distribution company TCB Media Rights.

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