MONTREAL – Astral Media reports profits rose sharply in the fourth quarter, with net earnings of $54.3-million, up 14% from $47-million the previous year. Revenue growth grew at a slower pace of 2% to $251.8-million from $247.6-million.
Astral noted that with the CRTC’s rejection of its takeover by BCE, and the outcome of BCE’s appeal officially unknown, “there can be no assurance that the transaction will occur, or that it will occur on the terms and conditions currently contemplated," read the release. Company co-founder and CEO Ian Greenberg wouldn't say much about the Bell denial in his conference call with financial analysts Wednesday afternoon other than to say, "we are still committed to see if there's a way to complete this transaction."
(Bell may have more to say Thursday morning when it releases its quarterly results and executives speak to financial analysts.)
In the fourth quarter EBITDA rose 11% to $85.6 million from $77.2 million for the same period last year. Cash flow from operations rose 11% to $71.1 million for the fourth quarter compared to $63.8 million for the corresponding period last year. "I am very pleased with the solid performance delivered by our business units in fiscal 2012, particularly with the strong finish in the fourth quarter, consolidating the Company's 16th consecutive year of profitable growth," said Greenberg, in the release. "We remain fully committed to maintain the same financial discipline that allowed the Company to grow in Fiscal 2012 and to continue to invest in content and new products in order to offer the highest possible quality of products and services."
In Fiscal 2012, consolidated net earnings grew 9% over last year to $204.4 million from $188.0 million, while diluted earnings per share grew 10% to $3.64 from $3.30 last year. EBITDA rose 4% to $331.2 million from $318.4 million for the same period last year. Consolidated revenues for fiscal 2012 totalled $1.22 billion, a 1% increase over the $1.15 billion recorded last year for the same period. Cash flow from operations rose 5% to $259.0 million for the year compared to $246.5 million for the corresponding period last year.
Greenberg also noted that the company will likely launch authenticated TV Everywhere service HBO GO in Canada "in the coming weeks."
Television
- Revenue growth of 1% for the year (1% for the fourth quarter);
- EBITDA growth of 2% for the year (1% for the fourth quarter);
- In July 2012, launch of the new Cartoon Network service, currently available to 2.3 million subscribers on Cogeco, Eastlink, Telus and Bell;
Radio
- Revenue decrease of 1% for the year (2% growth for the fourth quarter);
- EBITDA growth of 4% for the year (23% growth for the fourth quarter);
- In January 2012, Astral completed the acquisition of all outstanding shares of Shore Media Group Inc., a radio broadcaster in Vancouver, BC, for a consideration of $13.4 million;
- In February 2012, launch of Astral Radio's all-new digital music service across NRJ and Virgin Radio networks.
Out-of-Home
- Revenue growth of 8% for the year (6% for the fourth quarter);
- EBITDA growth of 10% for the year (9% for the fourth quarter);
- In June 2012, Astral Out-of-Home announced the addition of two new digital advertising faces in the greater Montréal region, bringing the total of faces in Astral's Digital Network to 41;
- Subsequent to year-end, launch by Astral Out-of-Home of a brand new network of 30 urban Digital Columns in the heart of downtown Montréal.
Corporate
- In October 2011, the Company established, in addition to its existing credit facility, a $700.0 million unsecured five-year revolving credit facility and entered into two new interest-rate swap agreements to hedge its exposure to interest rate fluctuations;
- During the year, the Company repaid $133.0 million of its long-term debt and repurchased 423,800 Class A shares for a total consideration of $14.2 million.
- Under the terms of the Bell-Astral Transaction, the Company's dividend payment scheduled for August 2012 and activity under the Company's normal course issuer bid have been suspended;
