Mood Media posts deeper second-quarter loss, while revenues grow 17 per cent

TORONTO – Mood Media Corp. (TSX:MM) says a combination of certain expenses drove the company, which provides various media assets to retailers, into a deeper second-quarter loss.

The Toronto-based company said before-tax losses were $8.9 million, compared to $8.3 million or four cents a share in the previous year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) fell eight per cent to $27.7 million, as it booked expenses related to higher healthcare costs and numerous acquisitions.

Revenue grew 17 per cent to $126.3 million from $107.8 million.

“We are generally satisfied with our performance in the quarter and believe we are on the right track to deliver on our strategy,” said chairman and CEO Lorne Abony.

“Our EBITDA performance in the quarter was affected by some one-time gains in the prior year and by some unusually high expenses in the current quarter, which affected the reported trend in EBITDA.”

Mood Media creates visual, audio and scent systems to enhance the retail environment. The company has been exploring various strategic alternatives, including the possibility of selling itself.

Among Mood Media’s best-known acquisitions was Muzak Holdings LLC in May 2011, which provides music services to customers. Last year, Mood Media made several acquisitions including DMX Holdings, which provides multi-sensory branding services.