Kew Media Group Inc. reported unaudited earnings results for the second quarter ended June 30, 2018. For the quarter, the company reported revenue of CAD 49.7 million, adjusted EBITDA of CAD 2.7 million and net loss of CAD 5.0 million or CAD 0.45 per share. Adjusted net income was CAD 1.5 million or CAD 0.12 per share. Adjusted net debt, taking account of material FX movements since the beginning of the year and amounts expended on interim production financing by the group, was CAD 45.2 million, an increase of CAD 10.2 million for the quarter.

The company reaffirms prior guidance for the year ended December 31, 2018. The company reaffirms prior guidance for adjusted EBITDA of CAD 26.5 million which includes an Adjusted EBITDA contribution of approximately CAD 5 million from Essential in the period following the closing of the acquisition on July 24, 2018.

As previously disclosed, KEW expects a significantly stronger second half compared to the first half of fiscal 2018 as production activity ramps up over the summer months, with the majority of related revenue being recognized in the third and fourth quarters. Further, the Company believes it has good visibility, particularly in its production segment based on shows ordered and the expected dates of delivery, but also in its distribution segment based on contractual sales to date and the segment's slate of titles being delivered in the second half of the year. The company expects about 75% of its adjusted EBITDA to be generated in the second half of the year.