HALIFAX – DHX Media kicked off its first quarter of fiscal 2016 with gains in revenue and profits.
For the period ended September 30, 2015, the company reported revenues of $63.9 million, up 48% from $43.0 million year-over-year. The increase was generally due to increases in distribution, which accounted for 19% of the growth (98% organic, 2% acquisitive), new media, producer and service fee revenue, which accounted for 37% of the growth (75% organic, 25% acquisitive), M&L-represented, which accounted for 18% of the growth (all organic growth), and acquisitive growth for DHX Television, which accounted for 23%.
Net income of $7.5 million improved from a loss of $7.7 million in Q1 2015. Gross margin for Q1 2016 was $34.56 million, an increase in absolute dollars of $9.49 million or 38% compared to $25.07 million year-over-year.
"We continued to generate double- and triple-digit growth across key metrics this quarter, including strong organic growth”, said CEO Dana Landry, in a statement. “The streaming market is expanding globally into new territories such as China, and our scale and integrated platform of production, distribution, broadcast and licensing allows us to leverage key opportunities across this evolving media landscape. As our business units rise to meet the growing demand for DHX's brands, this has translated into solid results."
In other company news, DHX Media said Monday that it has signed two non-exclusive content distribution deals with SVOD operators in China.
Online entertainment platform iQiyi has acquired AVOD and SVOD rights to more than 400 half-hours of content, which includes Teletubbies, Paddington and Caillou (pictured). In an additional deal, online video company LeTV has acquired OTT TV (Smart TV and set top box) and web broadcast rights to 313 half-hours of Teletubbies in English and Mandarin-language.
