Mood Media Corporation announced unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter, the company reported revenues of $110.243 million in the first quarter of 2017, down 1.0% relative to the prior year revenues of $111.335 million. Underlying revenues, which exclude the effect of foreign exchange translation and asset divestitures, increased by $1.5 million on a year-over-year basis, or 1.4%. Loss for the period before income taxes was $8.897 million against $10.073 million a year ago. Loss for the period was $9.482 million against $9.431 million a year ago. Loss attributable to owners of the parent was $9.465 million or $0.05 per basic and diluted share against $9.428 million or $0.05 per basic and diluted share a year ago. Net debt as on March 31, 2017 was $615.591 million against $620.222 as on December 31, 2016. The company achieved free cash flow of $4.6 million in the first quarter of 2017, which was stable relative to prior year when adjusted for foreign exchange and for the prior year disposal of Mood's former French speaker manufacturing business, Majorcom. The company's adjusted EBITDA was $20.571 million in the first quarter of 2017 compared with $21.820 million in the prior year's first quarter. On an underlying basis, excluding the effect of foreign exchange translation and asset disposals, first quarter 2017 adjusted EBITDA declined by $1.2 million relative to prior year. The company believes that the decline in first quarter underlying EBITDA is primarily related to temporary large job install delays in its International In-Store Media segment as well as declines in North American recurring revenues. First quarter 2017 revenues declined by 1.0% or $1.1 million relative to the prior year's first quarter, with a $1.5 million increase from underlying operations, which was more than offset by a $1.6 million decrease from foreign exchange translation and a $1.0 million decrease related to the sale of its French speaker manufacturing business.

Ongoing in 2017, the company expects free cash flow to be positive and adjusted EBITDA to be stable relative to 2016, when adjusted to reflect the announced sale of BIS. The company expects continued positive momentum in North America In-Store Media recurring revenue trends with improved new sales and reduced churn driven by investments made in 2016 in the areas of Premier sales, Systems sales, Local inside sales, service delivery & marketing. Similarly, International In-Store Media is expected to show positive momentum in recurring revenues. Offsetting some of the recurring revenue gains will be increased investments in sales, partnerships and content expansion, as well as a delay in equipment & labor revenues already sold and committed from an international automotive chain client. Technomedia is estimated to gain ground in 2017 from its EBITDA performance in 2016.