The Internet Stock Blog reviewed Hollywood Media's Q3 conference call in November (before the roll-out of Google Movies,
which is powered by HOLL's movie showtime listings) in an effort to determine 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.)