VANCOUVER, CANADA / TheNewswire / March 30, 2017 – Network Media Group Inc. (“Network” or “the Company”) (TSX: NTE.V) today reported record financial results from the operations of its subsidiary, Network Entertainment Inc., for the fiscal year ended November 30, 2016 (“Fiscal 2016”), including revenues of over $8.1 million and net income of almost $500,000. The Company also reported its results from the fourth quarter ended November 30, 2016.

 

“Network continues to improve its financial results and execute on its objectives to expand its production activities and build relationships with leading U.S. broadcasters and international distribution partners” said Derik Murray, Chief Executive Officer.  

 

The financial results for Network’s Fiscal 2016 include the following highlights:

 

• -Revenues up 271% for Fiscal 2016 to $8,110,173

  -Income increased by 398% in Fiscal 2016 to $499,997

  -Earnings per share increased to $0.01 per share in Fiscal 2016, from $0.00 per share in 2015

 

The Company’s consolidated financial statements for November 30, 2016 and 2015, are available on www.sedar.com under the Company’s profile.

The improved results are directly attributable to the increased levels of production that Network has experienced over Fiscal 2016. It released the newest addition to its library of icon documentaries (I Am JFK Jr.) and a two-part series for Discovery Channel (The Cowboy), and completed production of a seven-part documentary series for National Geographic (Facing).

CEO Derik Murray stated, “The momentum we triggered in the marketplace in 2015 has greatly expanded this year, further heightening our exposure in the U.S. market and thus driving out improved results.”

A more detailed analysis of the other components of the Company’s performance can be found in its Management Discussion and Analysis as filed on www.sedar.com.

About Network Media Group

Network is focused on becoming one of the world’s leading developers and producers of entertainment properties for the global marketplace and its worldwide audience. It is the parent company of Network Entertainment Inc., an established television and film production company with an award-winning international reputation. Its productions include the Academy Award shortlisted feature documentary Facing Ali, as well as documentaries on the lives of Bruce Lee, Steve McQueen, Evel Knievel and, most recently, Chris Farley and Johnny Cash.  The I Am Chris Farley production, which was released in the summer of 2015, set all time ratings records for Spike.

Network's past projects and current productions can be viewed at www.networkentertainment.ca

For further information concerning this press release, please email info@networkentertainment.ca

ON BEHALF OF THE BOARD OF DIRECTORS OF

NETWORK MEDIA GROUP INC.

"Derik A. Murray"

Derik A. Murray

Chief Executive Officer and Director

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This news release contains statements regarding the Company’s anticipated revenue for fiscal 2016, which constitute “forward‐looking information under applicable Canadian securities laws and are based on expectations, estimates and projections as of the date of this news release. These statements are necessarily based upon management’s perceptions, beliefs, assumptions and expectations of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management of the Company  as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies that could result in the forward-looking information ultimately, perhaps materially, being incorrect.  Those assumptions relating fiscal 2016 projections include the Company completing its productions in development and meeting all conditions of existing film and episode purchase agreements so that revenue is recognized in fiscal 2016, distributions from past projects achieving current sales reports and expectations based on past experience on sales of Network’s iconic documentaries, receipt of expected tax credits from Canadian Federal and Provincial governments, and a stable US-Canadian foreign exchange rate.

All forward‐looking information in this news release involve known and unknown risks, uncertainties and other factors that are beyond the control of the Company and may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward‐looking information. Such risk factors include, but are not limited to, each of the following, as well as those risk factors discussed in the Company’s most recent quarterly Management’s Discussion and Analysis, a copy of which is available on SEDAR at www.sedar.com.

• -The Company’s revenues may fluctuate from quarter to quarter and year to year depending upon sales cycles, consumer demand and the timing of distributor and broadcaster license decisions, as well as the timing of when the proceeds of such licenses meet the Company’s revenue recognition criteria;

  -The Company is dependent upon and expects to continue to derive a large percentage of its revenues from key third-party domestic and international distributors and broadcasters, whose purchase/licensing patterns and own consumer markets may change, having a material impact on the Company’s revenues and future business opportunities. In addition, such third parties may also offer their own products that are competitive with the Company’s products;

  -The contracts entered into with third party broadcasters and distributors may not be honoured by those third parties, or the payment terms not complied with;

  -The Company is subject to the overall market demand for its products, namely documentary films, which may fluctuate depending on public preferences, as well as strength of the home entertainment business and overall economic and market conditions; and

  -The timing for delivery of the Company’s products to its broadcasters and distributors are subject to disruption for reasons including, but not limited to, production schedule changes, availability of production crew, travel disruptions, the personal schedules of key talent, all of which can prolong delivery times, delay the timing of release of the Company’s products to the public and ultimately delay receipt of licensing and broadcasting fees.

These risk factors are not intended to represent a complete list of the factors that could affect the Company and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information. There can be no assurance that such forward‐looking information will prove to be accurate, as actual results and future events could vary or differ materially from those anticipated in such information. Forward-looking information is provided for the purpose of giving readers more insight into the Company’s future financial and operational results, based on management’s expectations. Readers are cautioned that the information may not be appropriate for other purposes. The Company disclaims any intention or obligation to update or revise any forward‐looking information, whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except to the extent required by applicable law.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

OR DISSEMINATION IN THE UNTIED STATES