IO World Media, a tiny public company, is best known for streaming Bubba the Love Sponge on the Internet – and even has Bubba on its board of directors. The company reports that Q1 revenues jumped – and that was even before new revenues from Bubba’s show kicked in.
A February promotion to launch Bubba’s uncensored show raised nearly $1 million in discounted subscription revenues, but that cash isn’t counted in IO World Media’s Q1 results because it has to be recognized over the three-year period of the subscriptions under generally accepted accounting principles (GAAP). But that cash is in the corporate coffers, so the company had nearly $762K of cash on hand at the end of the quarter, compared to $2K a year earlier.
Q1 revenues shot up 61.4% to $293K. The company is still in the early stage of development, so the net loss was $248K, up from a loss of $232K in Q1 of 2010.
“We are pleased with our results from operation in the first quarter due to the fact that we have seen a significant increase in revenue from both subscription and advertising sales,” said Thomas Bean, CEO of IO World Media. “Further, we have worked diligently to control cost while continuing to improve not only the products that we deliver but our delivery platform as well.”
IO World Media recently announced a series of equity for debt swaps which essentially left it debt-free. Those transactions took place in April and will be reflected in the Q2 report. The Q1 report also shows another transaction in April, with the Bubba the Love Sponge Show and related personnel receiving 10 million shares of restricted shares of IO World Media as part of the agreement to provide content for its Radioio Live online streaming radio service.
RBR-TVBR note: Still worth a listen if you haven’t heard it is RBR-TVBR Publisher Jim Carnegie’s interview with Bubba about the business aspects of his new streaming venture and how he expects his online radio revenues to surpass his previous deal on satellite radio.