DCD Media Plc (LON:DCD) has said it will require third-party funding over the coming months but it is also confident of delivering a positive financial outcome for the full year.
The independent TV distribution and production group said that even if people accessed more home entertainment and on-demand streaming during the coronavirus pandemic, the business environment has been and remains challenging.
However, it added, revenues for the year to March 31, 2021, are expected to surpass the like-for-like performance of the prior year and to deliver a profit although “it is imperative that the DCD Rights team partners with additional funders to provide opportunities in this expanding market”.
Executive chairman David Craven said the firm is evaluating additional third-party funding sources to help leverage more licensed content and further increase the hours of TV content on offer to buyers.
The outlook remains unclear because the group is exposed to USD exchange fluctuations that can be “sizeable and material”, Craven added.
In the six months to September 30, 2020, DCD’s revenue surged by 39% to GBP5mln while adjusted profit before tax jumped 33% to GBP240,000. Cash at period-end was GBP2mln, broadly unchanged from March.
The performance was driven by programmes such as The Secrets She Keeps, Penn & Teller: Fool Us in Vegas and Bridezillas.
Shares slipped 17% to 200p on Thursday morning.