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FAB Universal (NYSE MKT:FU), a worldwide distributor of digital media and entertainment, today announced financial results for the third quarter ending September 30, 2013.
“FAB Universal recorded another strong quarter, driven by continued momentum in our digital business which includes our high-margin Intelligent Media Kiosk network,” said Chris Spencer, CEO of FAB Universal. “We added over 2,400 new kiosks to our network during the quarter and now have kiosks in 40 cities across China with a total installed base of 16,820 terminals. As we continue to add high quality copyrighted content to our offerings, we expect sustained demand for our kiosks from both new licensees and consumers.”
“Based on our year to date performance, and including expected reinvestments in the licensing and kiosk business during the fourth quarter, we are adjusting our guidance for 2013 to revenue of $102-$105 million and net income of $19-$21 million for the full year. As we execute our strategy to increase our offerings of purchased digital media content across a wider set of distribution channels, now expanded to include mobile phones and subscription TV, we expect to continue to leverage FAB’s brand and capitalize on the growing importance of the media and entertainment industry in China,” concluded Mr. Spencer.
Third Quarter and Year-to-Date Financial Review
FAB Universal acquired DEI Ltd. on September 26, 2012. Therefore year-over-year comparisons of the company’s financial results largely reflect the addition of DEI.
Total revenue for the third quarter ended September 30, 2013 was $29.8 million compared $1.7 million for the third quarter of 2012 and $25.9 million for the second quarter ended June 30, 2013, a sequential increase of 15.1%. Revenue for the wholesale business unit was $14.0 million for the third quarter of 2013 compared to none in the year ago period and $14.0 million for the second quarter of 2013. Revenue for the digital business unit was $13.3 million for the third quarter of 2013 compared to $1.7 million for the third quarter of 2012 and $9.6 million for the second quarter of 2013. Revenue for the retail business unit was $2.5 million for the third quarter of 2013 compared to none in the comparable period of 2012 and $2.3 million for the second quarter of 2013.