(Alliance News) - Entertainment AI PLC on reported a loss and lower revenue for the first quarter of 2020, due to tough market conditions despite higher GT Channel views.
For the three months to the end of March, the media platform company reported an adjusted pretax loss of USD630,000, in line with company expectations.
Revenue per view dropped by 33% to USD1.57 in cost per mille, compared to USD2.33 the year before, reflecting wider market conditions. As a result, revenue was down 8% at USD2.1 million from USD2.3 million as a result of Covid-19.
This was in spite of GT Channel, which has a Youtube channel showcasing reviews and features related to the automotive industry and had its views rise by 35% to 4.4 billion from 3.3 billion the prior year.
Looking ahead, Entertainment AI said it expects to the roll-out of CreatorSuite to impact the economic of multi-channel networks, both the group's and others, by driving incremental views on YouTube.
CreatorSuite works by allowing the group's network of creators to generate significant new revenue streams such as offsite contextual e-commerce and lead generation from videos on other websites.
Entertainment AI is also looking to introduce BrandSuite during the second quarter of 2020, to help brands better monetise the interest of viewers.
"We believe that our technology products are being launched at the right time to take advantage of opportunities brought on by Covid-19 crisis and market drop in digital ad sales. We have the capital and institutional backing to deliver our solutions on-time and we look forward to this challenge," said Chair Patrick DeSouza.
Shares in Entertainment AI were 12% higher at 28.50 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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