MONTREAL – Consolidated net earnings for the first three months of Fiscal 2008 at Astral Media increased by 15% over last year, rising to $37.5 million and consolidated revenues totaled $198.7 million for the first quarter, an increase of 20% over the same period of fiscal 2007.
EBITDA for the first three months increased 24% to $65.6 million and cash flow from operations rose 31% totaling $46.3 million for the first quarter compared to Q1 ’07.
Astral Media owns and operates such media assets as The Movie Network, Family Channel, Super Ecran and other pay television services, a large outdoor advertising unit and, with the fall 2007 completed purchase of Standard Broadcasting, 82 radio stations across the country.
"We are very pleased with the company’s results for the first quarter of fiscal 2008, which are another illustration of Astral Media’s ability to sustain growth both organically and through strategic acquisitions," said Ian Greenberg, president and CEO, in the press release this morning.
On the television side, revenue grew by 7% as advertising revenues rose 12% and subscriber-related revenues 6%. EBITDA margin rose from 35.7% to 36.6%.
During this morning’s conference call with financial analysts, Greenberg noted that on the television side, Astral is still below 50% penetration for its pay TV assets on Rogers Cable, Cogeco Cable and Videotron – the big three in the east (where TMN is licensed) – so “it still leaves a lot of room for growth in the future.”
In the radio unit, revenue growth was 58%, mainly due to the one-month results of the Standard Radio assets acquired. EBITDA growth was 63% while margin rose from 33.9% to 35%. Radio stations in Québec recorded a 2% organic revenue growth.
Other quarterly highlights included the launch of Teletoon Retro and Playhouse Disney.
Greenberg also indicated that the two conventional television stations Astral acquired with Standard (CJDC – Dawson Creek, B.C. and CFTK – Terrace, B.C.) will eventually be put on the block.
Greenberg noted the OTA stations are “not really the core business of Astral,” indicating the stations will probably be sold off.
www.astralmedia.com
