PHOENIX - Edgio Inc. (NASDAQ: EGIO), a global edge network service provider, has announced a collaboration with Brazilian broadcaster BandNews TV, part of Newco Pay TV, to enhance the distribution of the newly launched FAST channel, New Brasil, in the country's growing streaming market. This partnership, leveraging Edgio's Uplynk solution, aims to capitalize on the expected growth of the Free Ad-Supported Streaming TV (FAST) market in Brazil.
The new channel, which has been described as the "hot new channel," was launched in Lisbon on April 24, 2023, and is now being distributed in Brazil through Pluto TV, a free streaming service that entered the Brazilian market in 2020. The collaboration also includes Youcast!, a leading Brazilian technology and service provider, which will help to extend the channel's reach by attracting additional broadcasters.
Newco Pay TV, which is operated by Grupo Bandeirantes, initially started its pay TV operations with BandNews TV on March 19, 2001. BandNews TV has since become the second-largest broadcaster in Brazil, offering a wide range of content including news, sports, and various other programs.
Edgio's Chief Technology Officer and General Manager of Media, Eric Black, expressed excitement about assisting Newco in amplifying its presence in Brazil. He pointed out the significant potential for growth in the FAST market, especially outside the United States, and the company's confidence in delivering the necessary services to meet customer expectations.
The partnership reflects Edgio's comprehensive approach, combining its edge network with integrated application and media solutions to facilitate faster and more secure content delivery. This strategy is intended to drive revenue and business value for companies by enhancing online experiences.
This collaboration is based on a press release statement.
InvestingPro Insights
Edgio Inc. (NASDAQ: EGIO), while stepping into an exciting collaboration in Brazil's burgeoning streaming market, presents a mixed financial canvas according to the latest data extracted from InvestingPro. The company's market capitalization stands at a modest 77.88 million USD, reflecting a niche player in the tech landscape. Despite a significant revenue growth of 46.16% over the last twelve months as of Q1 2023, Edgio's financial health is under scrutiny with a negative P/E ratio of -0.51, indicating that the company is not currently profitable.
An InvestingPro Tip highlights that Edgio is trading at a low Price / Book multiple of 0.43, which could signal that the stock is undervalued relative to the company's book value. This could be of interest to value investors looking for potential opportunities. Additionally, the company's substantial revenue growth contrasts with a quarterly revenue decline of -12.45% in Q1 2023, suggesting some volatility in the company's earnings.
Furthermore, Edgio's stock has experienced a strong return over the last month with a 28.98% price total return, showing signs of recovery after a significant fall of 61.86% over the last year. Investors may consider this recent uptick as a positive trend, but should also be aware of the company's high price volatility, as indicated by another InvestingPro Tip.
For readers interested in a deeper dive into Edgio's financials and future prospects, InvestingPro offers additional insights and tips. There are currently 13 more InvestingPro Tips available for Edgio at https://www.investing.com/pro/EGIO, which could help in making a more informed investment decision. To access these tips and the full suite of tools on InvestingPro, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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