- Global media and marketing company Crowd Media (CM8), has sustained positive financial results this year, despite the COVID-19 pandemic
- In April, Crowd achieved $13.6 million in revenue and a small underlying earnings before interest, tax, depreciation and amortisation (EBITDA) profit of $0.1 million
- Crowd has reportedly adapted well to the market conditions, given the shifted focus to digital
- As a result, Crowd cut back marketing expenditure for hair and jewellery products that may not sell during these times
- However, its agreement to distribute KINN Living’s cleaning products across Europe has proven for suitable than ever
- Crowd Media is up 10 per cent and shares are trading for 2.2 cents each
Crowd Media (CM8) has continued to sustain positive financial results this year despite the COVID-19 pandemic.
Crowd has achieved $13.6 million in revenue and a small profit of $0.1 million in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) profit for the month of April. This favourably compares to the matching year to date 2019 loss of $2 million in previously reported underlying EBITDA.
Given the recent shift in focus to digital, Crowd Media has adapted well to working from home.
The media company has two divisions; a mobile division built upon its question and answer, and subscription tech platforms to deliver apps, games and music content, and a digital marketing division which works with brands and digital influencers to deliver content primarily to the Millennial and Gen Z markets.
“Crowd’s performance has improved slightly within the qualifying period, thereby disqualifying itself from any external assistance,” the company stated.
The strategic alliance with both London Labs and I Am Kamu has reportedly progressed as planned, however marketing these products has become difficult due to COVID-19.
London Labs is a hair-care specialist and I Am Kamu is a Berlin-based jeweller.
In an announcement made in February, Crowd stated it’d sell these products directly to consumers, stating the alliance will further improve company cash flow due to the immediate nature of payment collection.
The company cut back its marketing spend to preserve cash but has recently started to increase its marketing budget and expects to see the benefits in the near future.
While Crowd found itself pulling back marketing expenditure for these somewhat frivolous products, its distribution agreement with KINN Living was a sure sell during these times.
KINN Living is a London-based retailer of eco-friendly cleaning, laundry and skincare products. Crowd agreed to distribute these products across Europe and the U.K. for a three-year term.
“The brand has a compelling offering, is attractively priced, superbly formulated, beautifully packaged, and ticks all the ESG (environment, social, governance) boxes,” the company stated.
Crowd Media is up 10 per cent and shares are trading for 2.2 cents each at 11:25 am AEST.