MONTREAL – Astral Media Inc. says its acquisition of Standard Radio was a major factor in boosting second quarter revenue to nearly $207 million, a 38% increase over the same period last year.
Consolidated net earnings for the second quarter ended February 29, 2008, increased by 18% over the same quarter last year, rising to $29.0 million ($0.51 per share) from $24.6 million ($0.47 per share). Consolidated net earnings for the first six months of fiscal 2008 increased by 16% over last year, rising to $66.5 million ($1.19 per share) from $57.3 million ($1.08 per share) last year. Consolidated revenues totalled $405.7 million for the first half of the year, an increase of 29% over the $315.0 million recorded last year for the same period.
For the second quarter, EBITDA rose to $61.2 million from $41.4 million for the same period last year, an increase of 48%. EBITDA for the first six months increased by 34% to $126.8 million from $94.4 million for the same period last year. Cash flow from operations for the second quarter increased 35% to $41.7 million from $30.8 million for the same period last year. Cash flow from operations rose 33% totalling $88.3 million for the first half of the year compared to $66.3 million for the same period last year.
"Our specialty television networks recorded strong growth for the quarter with advertising revenues increasing by 12%," said Ian Greenberg, president and chief executive officer. "With the Standard Radio acquisition, revenues of our Radio Group for the quarter amounted to $75.1 million, an increase of $49.4 million compared to the same period last year. Astral Media’s radio stations in the Québec francophone market and in the Atlantic Provinces recorded a 2% organic growth. Finally, our Outdoor Division is continuing to generate sizeable benefits from the Toronto Street Furniture contract, as revenues grew 43% for the quarter," continued Greenberg.
"Today’s results once again confirm the strength of our asset mix and our ability to consistently deliver growth in an environment that is more and more challenging. Going forward, our new national footprint will continue to allow us to transform this exposure into new growth opportunities."
Operational highlights
Television
– Revenue growth of 5% for the six-month period;
– EBITDA growth of 8% for the six-month period;
– EBITDA margin rose from 35.0% to 35.8% for the six-month period.
Radio
– Revenue growth of $67.5 million (119%) for the six-month period,
mainly due to the assets acquired from Standard Radio;
– EBITDA growth of $24.3 million (143%) for the six-month period;
– EBITDA margin rose from 29.9% to 33.2% for the six-month period;
– Radio stations in Québec and the Atlantic Provinces recorded a 2%
organic revenue growth for the six-month period.
Outdoor Advertising
– Revenue growth of 48% for the six-month period, as a result of the
Toronto Street Furniture Program effective September 1st, 2007, and
a strong performance in the Québec market;
– 52% EBITDA growth for the six-month period.
Other
– Launch of a new radio station in Regina, Saskatchewan : Big Dog 92.7,
CHBD-FM;
– 25% increase in the dividend rate announced on December 5, 2007;
– Renewal of the normal course issuer bid announced on December 5,
2007.
