The Arena Group Anticipates Preliminary Revenue of Approximately $47 Million for the First Quarter of 2022
28 Avril 2022 - 2:00PM
Business Wire
Revenue Expected to Significantly Exceed
Published Wall Street Expectations;
Company to Announce First Quarter Results and
Host Conference Call on May 4, 2022
The Arena Group Holdings, Inc. (NYSE American: AREN) (the
“Company”) or “The Arena Group”), a tech-powered media company with
40 owned and operated properties and more than 200 brands including
Sports Illustrated, TheStreet, Inc. (“TheStreet”), Parade Media
(“Parade”), and HubPages, Inc. (“HubPages”) operating on a single
technology platform, today announced certain preliminary unaudited
financial results for the three months ended March 31, 2022. The
preliminary unaudited financial results do not include any
contribution from AMG/Parade, which was acquired subsequent to the
first quarter.
2022 Unaudited First Quarter Preliminary Financial
Results
- Revenue expected to be approximately $47 million, an increase
of approximately $14 million, or 44%, compared to the first quarter
of 2021, driven by a more than doubling of digital advertising
revenue.
- As a result of the increase in revenue, gross profit more than
tripled to approximately $20 million for the first quarter of 2022
from $5 million reported in the prior year quarter.
Management Commentary
Chairman and Chief Executive Officer of The Arena Group Ross
Levinsohn said, “Our expected financial results for the first
quarter continue to validate our platform and our strategy,
enabling us to exceed expectations and drive higher revenue and
substantial audience growth. Our first quarter, typically the
slowest from a seasonal perspective, will significantly exceed
analyst expectations,” he said. “We are continuing to expand and
generate efficiencies, and grow our operating margins. During the
fourth quarter of 2021 we reached an inflection point in our growth
and now for every new digital dollar of revenue that the Company
generates, more than 50% contributes to our gross profit. The
investments we’ve made over the past eighteen months have now
positioned our Company to grow without any further substantial
capital outlays. We continue to bolster our content, develop and
leverage brand recognition, and exploit strong audience development
capabilities across a unified backend system. Our expected
financial results from the first quarter serves as powerful
validation of our strategy, and we believe 2022 will be a year of
significant growth.”
These preliminary results are based on current expectations and
may be adjusted, as a result of, among other things, completion of
customary quarter-end close review procedures and financial review.
We expect to issue full financial results for the first quarter of
2022 on May 4, 2022.
Conference Call
Ross Levinsohn, The Arena Group’s Chief Executive Officer, and
Doug Smith, Chief Financial Officer, will host a conference call
and live webcast to review the quarterly results and provide a
corporate update on Wednesday, May 4, 2022 at 4:30 p.m. ET. To
access the call, please dial 888-506-0062 (toll free) or
973-528-0011 and if requested, reference conference ID 388900. The
conference call will also be webcast live on the Investor Relations
section of The Arena Group’s website at
https://investors.thearenagroup.net/news-and-events/events.
Following the conclusion of the live call, a replay of the
webcast will be available on the Investor Relations section of the
Company's website for at least 90 days. A telephonic replay of the
conference call will also be available from 7 p.m. ET on May 4,
2022 until 11:59 p.m. ET on May 18, 2022 by dialing 877-481-4010
(United States) or 919-882-2331 (international) and using the
passcode 45346.
About The Arena Group
The Arena Group creates robust digital destinations that delight
consumers with powerful journalism and news about the things they
love – their favorite sports teams, advice on investing, the inside
scoop on personal finance, and the latest on lifestyle essentials.
With powerful technology, editorial expertise, data management, and
marketing savvy, the transformative company enables brands like
Sports Illustrated and TheStreet to deliver highly relevant content
and experiences that consumers love. To learn more, visit
www.thearenagroup.net.
Forward Looking Statements
This press release includes statements that constitute
forward-looking statements. Forward-looking statements may be
identified by the use of words such as “forecast,” “guidance,”
“plan,” “estimate,” “will,” “would,” “project,” “maintain,”
“intend,” “expect,” “anticipate,” “prospect,” “strategy,” “future,”
“likely,” “may,” “should,” “believe,” “continue,” “opportunity,”
“potential,” and other similar expressions that predict or indicate
future events or trends or that are not statements of historical
matters, and include, for example, statements related to the
expected effects on the Company’s business from the COVID-19
pandemic. These forward-looking statements are based on information
available at the time the statements are made and/or management’s
good faith belief as of that time with respect to future events,
and are subject to risks and uncertainties that could cause actual
results to differ materially from those expressed in or suggested
by the forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to, the
duration and scope of the COVID-19 pandemic and impact on the
demand for the Company products; the ability of the Company to
expand its verticals; the Company’s ability to grow its
subscribers; the Company’s ability to grow its advertising revenue;
general economic uncertainty in key global markets and a worsening
of global economic conditions or low levels of economic growth; the
effects of steps that the Company could take to reduce operating
costs; the inability of the Company to sustain profitable sales
growth; circumstances or developments that may make the Company
unable to implement or realize the anticipated benefits, or that
may increase the costs, of its current and planned business
initiatives; and those factors detailed by The Arena Group
Holdings, Inc. in its public filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. Should one or more of these risks,
uncertainties, or facts materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those indicated or anticipated by the forward-looking
statements contained herein. Accordingly, you are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date they are made. Forward-looking statements
should not be read as a guarantee of future performance or results
and will not necessarily be accurate indications of the times at,
or by, which such performance or results will be achieved. Except
as required under the federal securities laws and the rules and
regulations of the Securities and Exchange Commission, we do not
have any intention or obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20220427006108/en/
Investor Relations Contact Rob Fink FNK IR Aren@fnkir.com
646.809.4048 Media Contacts: Rachel Fink Communications
Manager, The Arena Group comms@thearenagroup.net Andrew Rhodes DKC
arena@dkcnews.com
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