DHX Media Ltd. (NASDAQ:DHXM) Q1 2019 Earnings Conference Call - Final Transcript
Nov 13, 2018 • 08:00 am ET
Good morning, ladies and gentlemen, and welcome to the DHX Media Fiscal 2019 First Quarter Webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.
I would now like to turn the call over to Nancy Chan-Palmateer, Director, IR at DHX Media. You may begin your conference.
Thank you, operator, and thank you, everyone, for joining us today. Speaking on the call today are Michael Donovan, our Executive Chairman and CEO; and Doug Lamb, our CFO. Also with us and available during the question-and-answer session are Aaron Ames, our COO; Josh Scherba, President; and David Regan, EVP, Strategy and Corporate Development.
(Forward-Looking Cautionary Statements)
For the question-and-answer session that will follow, we ask that each analysts keep to one question, with one follow-up, so that everyone has a chance to ask questions. If you would like to ask an additional question, please rejoin us at the queue.
Turning to slide three, I will now hand the call over to our Executive Chairman and CEO, Michael Donovan.
Thank you, Nancy, and thank you very much, everyone, for joining us today.
We are encouraged by Q1 results and expect positive momentum to continue, as we execute on our strategy of focusing on WildBrain and premium content. WildBrain had another excellent quarter with double-digit revenue growth affirming our focus on this high-growth platform. Our pipeline for content and brands is building well across the business, and we expect that to continue in the coming quarters. We are also making progress towards our fiscal objectives growing revenue, cutting costs and reducing debt.
Turning to slide four. Some important new statistics have emerged from YouTube, which illustrate that we have significantly underestimated the reach of WildBrain with kids. We now know that worldwide one-third of the approximately 830 million kids with access to YouTube watched at least 1 video on WildBrain -- the WildBrain network in Q1. This activity is generating over 2.5 million views per month on the network, that's 13 billion minutes of watch time per month, up 66% from Q1, 2018. As a result, WildBrain has grown at 49%. AVOD is a major part of the rising trend of kids watching content online and WildBrain is the leading network in the space.
Let me take a minute to give you a bit more insight into the platform we're building at WildBrain. WildBrain launched six years ago with access to DHX's large global content library. As many of you know, we own the world's largest independent library of kids' content. The reason this is important is because it allowed WildBrain to test at scale numerous genre formats and subjects across hundreds of demographics and territories. This testing has provided us with key insights to formulate our approach to optimizing the kids' experience in the AVOD space.
Across our platform, we believe we're able to drive longer and better engagement and to attract the most relevant and most