YOU On Demand (YOD) stock has dropped after a problematic earnings report from the media company.
YOU On Demand reported 2013 revenue of $309,00 — which was a net loss of more than $8 million and a gross loss of $2.8 million.
YOD stock is down 17% in early morning trading.
The company pointed out in an investor call and in a released statement that “YOU On Demand’s financial results for the 2012 full-year period mainly reflect the operations of its now legacy business, Shandong Media.”
YOD’s cash and cash equivalents balance at December 31, 2013 rose to $3.8 million, up from $3.3 million a year earlier, and this figure does not yet reflect the additional gross $19.0 million infusion from C Media and other investors, which was received during Q1 2014.
…Total operating expenses declined 22% on a Pro Forma basis and the Company’s reduced cost base along with a one-time net gain from discontinued operations, helped lead to an approximate 49% reduction in the annual net loss.
YOU On Demand’s multi-platform entertainment company streams Hollywood and China-produced movie titles to customers across China via an on-demand service.
YOD stock is still up some 80% year to date, even after the drop.