TORONTO – Asian Television Network (ATN) reported a second quarter net loss of $426,270, a steep drop of 311% compared to Q2 last year, on revenues of $3.96 million for the second quarter ended June 30, 2018.
Operating revenue fell 24% year-over-year which the broadcaster said is a result of “increased Internet piracy and consumers shifting towards legal and illegal digital and on-line media,” according to the management discussion and analysis.
“The Company is actively involved in Fair Play Canada, a coalition with more than 25 organizations to combat the impact this is having on our subscription and advertising revenue,” ATN said in its filings. “The coalition has been lobbying the Canadian Radio-television and Telecommunications Commission (CRTC) to establish an independent anti-piracy, website-blocking agency, which would curtail digital media theft. The matter is currently under consideration by the CRTC.”
EBITDA for the quarter plunged 109%, from $653,090 in the same period last year to a loss of $56,153.
Broken down by segment, ATN's subscription revenues for the period dropped 26% to $2.82 million; advertising revenue fell 15% to $1.05 million; and programming revenue declined 40% to $70,376.
“The trend where consumers are dropping their legal television providers for mostly illegal digital and online media companies continues”, adds ATN’s filings. “As a result, subscription revenue decreased for the quarter over same quarter last year by $1,018,118.
We are also seeing the advertising market being affected by illegal digital online media Companies. Their presence has affected our advertising revenues, resulting in declines of 15% and 12% or $186,001 and $286,764 respectively for the three and six months periods ended June 30, 2018 compared the previous periods.”
ATN serves Canada’s diverse cultural communities with over 50 premium specialty television channels.
