NeuLion has reported its financial results for the second quarter ended 30 June 2015, including a revenue increase of 69 per cent to $22.7 million, and a digital platform revenue increase of 16 per cent to $15.5 million. The company specialises in digital video broadcasting, distribution and monetisation of live and on-demand content to internet-enabled devices.
Our second quarter results demonstrate the strength of NeuLion's land and expand' growth strategy, competitive positioning and business model leverage as we continue to lead the way in delivering next-generation video experiences on any connected device, said Kanaan Jemili, chief executive officer. Revenue in our NeuLion Digital Platform grew 16 per cent against a record second quarter last year fuelled by new customer additions. Continued scaling of the NeuLion Digital Platform contributed to a 700 basis point improvement in cost of revenue as a percentage of revenue which, along with the addition of DivX and MainConcept revenue streams, drove a 380 basis point improvement in non-GAAP Adjusted EBITDA margin.
Building on the second quarter's strong execution, we are excited about our growth prospects as we continue to win new customers and expand existing customer relationships with content owners and CE manufacturers. Our unique end-to-end service offering and proven capabilities to enable on-demand and live digital content viewing anywhere and on any device place us in an excellent position to continue capitalising on the accelerating adoption of over-the-top and 4K video worldwide, concluded Jemili.
The second quarter saw NeuLion sign a new multi-year agreement with Tennis Channel following the success of the 2015 French Open and Wimbledon 2015. The agreement extends the one reached in May 2014 to support the launch of Tennis Channel Plus at the start of last year's French Open; since then, Tennis Channel Plus subscriptions have grown 400 per cent year-over-year and sees, on average, 25 per cent of subscribers using the online service at least once daily, the company reported.
As a result of the acquisition of DivX Corporation on 30 January, NeuLion is now reporting revenue for the NeuLion Digital Platform and DivX combined. The NeuLion Digital Platform combines the previously reported customer categories of pro sports, college sports, and TV Everywhere. DivX and MainConcept revenue was $7.2 million in the second quarter of 2015.
Cost of revenue was $4.2 million, or 19 per cent of revenue, for the current period compared to $3.5 million, or 26 per cent of revenue, for the prior comparable period. The seven percentage point improvement was due to a combination of the addition of DivX and MainConcept revenue streams and improved broadcast operating costs, the company has said.
www.neulion.com
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NeuLion has reported its financial results for the second quarter ended 30 June 2015, including a revenue increase of 69 per cent to $22.7 million, and a digital platform revenue increase of 16 per cent to $15.5 million. The company specialises in digital video broadcasting, distribution and monetisation of live and on-demand content to internet-enabled devices.
