How much was HOLL's contract with GOOG for movie showtimes worth? (Quotes from the 3Q04 conf call)
Hollywood Media (ticker: HOLL) CEO Mitch Rubenstein discussed his company's movie data business on his Q3 conference call in November. That was before the roll-out of Google Movies, which is powered by HOLL's movie showtime listings. Note his comment about the value of "new large contracts" in negotiation - a clue to the value of the GOOG deal?
Data. This segment, which includes CinemaSource, EventSource, exhibitor ads and Baseline Studio Systems, contributed revenue of $2.4 million for the quarter, up 37.4 percent from the $1.7 million reported last year. Growth in this division is primarily attributable to the acquisition of Studio Systems, which occurred in the third quarter, as well as internal growth in Baseline.
Moreover, we are actively in negotiations on several new large contracts, which would aggregate approximately $1.8 million annually in revenue. And any one of those deals could substantially increase the revenues and EBITDA for this division.
Following the Studio Systems acquisition, we've now reached a level of critical mass, where due to our size or diverse product offering, we can reach more customers for larger deals… variable expenses are also relatively low for this business. So growth beyond this point in our data segment should be mostly profit.
This is what excites the management team most, the leverage we have in this division. In addition, we are in the process of eliminating approximately $2 million of annualized expenses by the end of the current quarter to integrating Studio Systems with our Baseline unit.
(Quotes are from the CCBN StreetEvents transcript.)
Full disclosure: at the time of writing I'm long HOLL.
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