Kew withdraws financial guidance for fiscal ’19

The company said it expects its yearly earnings to be "materially lower than previously forecast."
Annual report

Kew Media Group has withdrawn its financial guidance for fiscal 2019, saying it expects its earnings to be “materially lower than previously forecast.”

The guidance was initially issued in Kew’s Q3 financial report, published on Nov. 14, when the company said its adjusted EBITDA guidance was likely to be between $18 million and $24 million. Kew said it would not provide a revised estimate on its 2019 earnings.

In November, Kew lowered its fiscal guidance after its year-over-year revenues dipped by 5.3% to $47.5 million, down from $52.8 million the year prior.

Since then Kew’s financial issues have intensified, with the company appointing a special committee in December to assess strategic alternatives, including the sale of all or parts of the company. While Kew has not provided any official updates on the status of the review, it was announced this week that its L.A.-based subsidiary Collins Avenue Entertainment had been acquired by The Content Group (TCG). In addition, Kew sold its equity stake in Scotland-based Two Rivers Media.

The company has also temporarily stopped trading on the Toronto Stock Exchange (TSX) after the Ontario Securities Commission issued a cease trading order. Meanwhile, the TSX has opened up a separate delisting review. Both these investigations were initiated after accounting firm Grant Thornton LLP withdrew the audits it had conducted on multiple financial reports filed by Kew over the past four years.

As and when Kew’s next financial report will emerge remains unclear after the company said it expects to miss the deadline for its year-end fiscal filing.

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