HALIFAX – Children’s entertainment company DHX Media reported a 15% increase in revenue to $30.4 million for its second quarter of 2014.
In its earnings report released Thursday, the company attributed its increased second-quarter revenues in part to a 42% increase in proprietary production revenue, which was at $5.2 million compared to $3.66 million for the same period a year earlier. That figure includes $1.59 million in revenue derived from DHX Media’s acquisition of Cookie Jar Entertainment in October 2012.
Net profit saw an almost tenfold increase to $2.81 million, compared to $287,000 to the same quarter a year earlier. On February 13, 2014 the company’s board of directors approved a dividend for the quarter of $0.012 on each common share, representing a 9% increase over last quarter's dividend.
The company’s merchandising, music and licensing revenues for Q2 2014 increased 76% to $7.37 million, compared to $4.19 million in Q2 2013, on the strength of increased revenues for its Yo Gabba Gabba! Live! tour ($2.51 million), as well as its acquisition of UK-based Ragdoll Worldwide Ltd. in September. That deal added 12 new series to DHX Media’s stable, including the popular Teletubbies and In the Night Garden brands.
DHX Media added 21 half-hours of content to its library during its second quarter, up from the 14 half-hours added in Q2 2013.
Distribution revenues in Q2 2014 were up 2% to $9.48 million from $9.26 million for Q2 2013. During the three-month period DHX Media closed significant deals with Turner Broadcasting System Inc., SpiritClips LLC, SARL – IDP Video, Netflix, Viacom Inc., and ITV plc (CiTV).
“DHX Media delivered strong growth this quarter due to increases in proprietary production and licensing revenues as well as margin expansion in our distribution business,” CEO Michael Donovan said in a release.
The company earned $4.69 million in producer and service fee revenues in Q2, a decrease of 19% compared to the $5.82 million for the same period a year earlier. That decrease was due to management’s decision to wind down its LA service studio and focus on its higher margin animation studios in Canada. The move to increase DHX Media’s proprietary production was also a factor, specifically in producing animation in the company's Vancouver studio, which is utilizing more capacity for proprietary shows and less for service shows.
