HALIFAX – DHX Media credited the ongoing demand for children's content for its double digit gains in revenues and profits in fiscal 2106.
For the fiscal year ended June 30, 2016, the children's content company reported revenues of $304.8 million, up 15% from $264.0 million year-over-year, and net income of $27.7 million, a 42% jump over last year’s $19.5 million.
Adjusted net income of $32.8 million fell from $38.4 million in fiscal 2015, while adjusted EBITDA grew 15% to $103.7 million from $90.2 million last year. Gross margin for fiscal 2016 was $173.32 million, an increase in absolute dollars of $28.28 million or 19% compared to $145.04 million year-over-year.
The company credited the revenue gain to higher distribution revenues (98% organic, 2% acquisitive), accounting for 22% of the increase, growth in proprietary production revenues (97% organic, 3% acquisitive), accounting for 13% of the increase, growth in M&L-represented revenues (all organic), accounting for 35% of the increase, a significant increase in producer and service fee revenues (90% organic, 10% acquisitive), accounting for 40% of the increase, and an increase in M&L-owned revenues (95% organic, 5% acquisitive), accounting for 12% of the growth, offset by a decrease in DHX Television revenues, which included twelve months of activity, versus eleven months in fiscal 2015, offsetting 17% of the growth, and a decrease in new media revenues (86% organic, 14% acquisitive), offsetting 5% of the growth.
In the fourth quarter, DHX Media reported revenue of $75.3 million which it said was in line with management's expectation, and a net loss of $1.7 million. The net loss was significantly impacted by currency exchange fluctuations, which resulted in an unrealized foreign exchange loss directly attributable to the material effect the decline in the British pound over the Canadian dollar had on DHX Media's foreign exchange exposure.
"Fiscal 2016 marked another year of profitable growth for DHX Media as we continued to benefit from the global appetite for children's content," said CEO Dana Landry, in a statement. "The Amazon deal announced recently for more than three dozen of our shows highlights the breadth and depth of our library. This validates the investments we are making in key business areas to capture market share at a time when demand for content is high. In 2017, we aim to add more proprietary titles, grow our WildBrain network and further leverage our well-known kids' brands as we capitalize on the shift to on-demand viewing."
