HALIFAX – Led by its Peanuts assets, DHX Media reported gains in revenues and profits for its second quarter ended December 31.
The children's content and brands company said Tuesday that revenues for Q2 2018 were $121.94 million (68% organic, 32% acquisitive), up 55% from $78.87 million year-over-year. The increase was due to strong growth in total distribution revenue (including WildBrain) (89% organic, 11% acquisitive), accounting for 27% of the growth, higher consumer products-owned revenues (16% organic, 84% acquisitive), accounting for 80% of the growth, robust growth in producer and service fee revenues (all organic), accounting for 18% of the growth, offset by decrease proprietary production revenues (all organic), offsetting 21% of the growth, a decrease in consumer products represented revenues (all organic), offsetting 1% of the growth, and a decline in DHX Television revenue (all organic), offsetting 3% of the growth.
“Organic revenue growth in the business highlights the returns being realized on our investment in content and the value of our library and brands”, reads the company’s news release.
Net income for the period was $7.4 million, up from the $5.8 million posted in the same period last year, while adjusted EBITDA grew from $24.0 million to $32.0 million.
“Content continues to be core to our business as we deliver on our strategic priority to create compelling, new shows that distribute globally, and generate high-margin consumer products revenues”, continues the release.
CEO Dana Landry said the company is focused on growing revenues and cash flow as it delivers on its commitment to de-lever.
“We delivered a second consecutive quarter of organic revenue growth in our core business, paired with strong cash flow from Peanuts," added Landry. "Our organic distribution revenue growth of 37% was led by WildBrain which grew organically by 73%, year-over-year and also from investments made in our partnership with Mattel. We remain on track to achieve our targeted annualized savings from the Peanuts integration and company-wide cost-reduction program.”
