HALIFAX – DHX Media has licensed more than 2,400 half-hours of preschool and kids' content across five video-on-demand services in China, the company said late Monday in conjunction with the release of its Q1 2017 financial results.
The deals cover 19 series, including classic Teletubbies (pictured), Caillou, Yo Gabba Gabba!, Twirlywoos, Inspector Gadget, Super WHY! and Messy Goes to OKIDO.
More than 6,100 half-hours of the company's kids' content is currently available on digital services in China, extending across 13 VoD platforms, including Alibaba, LeTV, as well as a partnership with state broadcaster China National Television.
CEO Dana Landry said that the new deals reflect the global appetite for the company's children’s content.
The Halifax-based company also released its first quarter financial results Monday which saw decreases in both profits and revenues.
For the period ended September 30, 2016, revenues of $53.83 million were down 16% from $63.91 million for Q1 2016. In absolute dollars, the decrease in Q1 2017 was due largely to expected declines in DHX Television and consumer products-represented revenues, as well as declines in proprietary production, distribution, producer and service fees, and consumer products-owned that are attributable to a combination of expected seasonal fluctuations and the timing of certain deliverables.
Net income of $1.4 million tumbled from $7.5 million year-over-year, significantly impacted by a foreign exchange loss versus a foreign exchange gain in the prior year quarter. Adjusted EBITDA was $14.83 million, down 19% over $18.37 million for Q1 2016.
Gross margin was $31.18 million, a decrease in absolute dollars of $3.38 million or 10% compared to $34.56 million in the same period last year.
For Q1 2017, the margins for each revenue category in absolute dollars and as a margin percentage were as follows: the proprietary content business had a gross margin of $11.38 million or 52%, net producer and service fee revenue margin of $4.34 million or 42%, television margin was $9.57 million or 62%, and consumer products-represented revenue margin was $5.90 million or 100%.
“While the first quarter was a slow start, we expect to deliver growth for the rest of the year in line with our recently increased annual revenue outlook on the back of continued strong global demand for our shows”, said Landry, in a statement. “The back half of the year is also expected to benefit from growing momentum for Teletubbies as we continue to roll out broadcast and consumer products for this flagship brand worldwide."
