MONTREAL – A fourth quarter loss and an impairment charge on its radio licences helped to drag down Astral’s financial results for the year ended August 31, 2009.
The company recorded a $317.5 million non-cash net impairment charge on the lower value of its radio broadcast licences, which contributed to a net loss of $158,025 million for the year. The Montreal-based media firm earned nearly $39 million last year.
Consolidated revenues totaled $905.7 million for fiscal 2009, an increase of 5% over the $865.4 million recorded in fiscal 2008, while EBITDA increased by 4% to $300.4 million, from $289.6 million last year.
Consolidated net earnings from continuing operations, before the impairment charge and future income tax recoveries, grew 6% to $159.5 million, compared to $150.5 million in 2008. Cash flow from continuing operations grew 5% to $216.6 million.
President and CEO Ian Greenberg said he was “delighted” by Astral’s response to the effects of the current economic recession which has plagued advertising markets across the industry.
“I am particularly pleased with the performance and continued contribution of each of our business units, that enabled Astral to grow despite these challenging times, and to reach new milestones with record revenues, EBITDA, and cash flows in Fiscal 2009", Greenberg said in a statement.
Revenue in its television division grew 3% to $513.3 million. Specialty-television subscriber revenue grew by 7%, while pay-television subscriber revenue increased by 6%. Advertising revenue declined by 4% which was partially explained by one less week in fiscal 2009 when compared to the 2008 broadcasting calendar.
Radio revenue grew by 9% to $323 million due in part to an additional two-month contribution in 2009 of the assets acquired from Standard Radio.
