The Arena Group (AREN) posted fourth-quarter and full-year results showing marked revenue gains, and reiterated its guidance for the current year after the close of trading on Thursday.
The media company, which is home to Sports Illustrated, TheStreet.com, Parade, Men’s Journal and scores more media properties, said full-year revenue from continuing operations rose 17%, driven by gains in digital revenue.
DON'T MISS: Target and Walmart Make a Major Pricing Decision
Ross Levinsohn, chairman and CEO of The Arena Group, said in a statement that "2022 was a transformative year for our Company as we grew our digital business lines substantially, expanded our portfolio, recorded revenue growth and sharpened our operations to drive significant improvements to our financial results.”
Levinsohn noted “We have grown revenue from $53.3 million in 2019 to $220.9 million in 2022, while expanding margins and significantly narrowing our losses and reporting our first full year of positive Adjusted EBITDA in our Company’s history."
Fourth-Quarter Highlights
In the fourth quarter, the company said digital advertising revenue increased 47% to a record $34.5 million vs. $23.5 million in the prior year period.
At the same time, quarterly operating expenses decreased by $15.3 million from $50.8 million to $35.6 million.
Receive full access to real-time market analysis along with stock, commodities, and options trading recommendations. Sign up for Real Money Pro now.
The quarterly net loss narrowed by $5.4 million to $13.7 million versus $19.1 million in the prior year period. The fourth quarter of 2022 included approximately $15.0 million in non-cash charges, which represents approximately 109% of the net loss, the company said.
The Arena Group generated $3.4 million in cash from operations versus $6.5 million of cash used in operations in the prior year period.
2023 Outlook: Scale and AI
Going forward, “We expect $30 to $35 million in Adjusted EBITDA for 2023, demonstrating the growing earnings power of our business as we more effectively leverage our scale,” Levinsohn said. “Simultaneously, we expect to continue to expand our use of technology, including artificial intelligence solutions, to drive incremental productivity efficiencies."
The Arena Group management also reiterated its full-year 2023 guidance of between $255 million and $270 million in total revenue
Pageview Gains for Core Properties
The company said it saw increases in pageviews from its core properties
The finance vertical, including TheStreet.com, grew monthly average pageviews 139% in 2022 compared to 2021, reaching an average of 27 million pageviews online each month, according to Google Analytics.
The Sports vertical, anchored by Sports Illustrated and featuring local team sites brand FanNation, The Spun and Sports Illustrated Media Group partners, increased monthly average pageviews by 76% in 2022 compared to 2021, according to Google Analytics. In addition, Sports Illustrated Media Group was the #4 ranked sports media property according to Comscore in January 2023.
The Company’s Pet Helpful property saw a 364% year-over-year growth in quarterly pageviews in the fourth quarter of 2022 to 309 million.
