
HALIFAX – DHX Media saw its second quarter profits more than double which its CEO credited to “solid fundamentals and steadfast execution of our business strategies”.
For the period ended December 31, 2015, the company reported revenues of $81.5 million, up 27% from $64.3 million year-over-year. The increase was generally due to increases in distribution revenues (92% organic, 8% acquisitive), which accounted for 34% of the growth, proprietary production revenues (97% organic, 3% acquisitive), which accounted for 48% of the growth, producer and service fee revenues (91% organic, 9% acquisitive), which accounted for 28% of the growth, M&L-represented revenues (all organic), which accounted for 23% of the growth, offset by a decrease in M&L-owned revenues (all organic), which accounted for 13% of the growth, DHX Television revenues, which accounted for 18% of the growth, and New Media revenues, which accounted for 2% of the growth.
Net income of $11.7 million improved from $5.5 million year-over-year, and adjusted net income was up to $12.6 million from $9.8 million in Q2 2015. Adjusted EBITDA was $27.76 million, up 16% over $23.87 million from the same period last year.
Gross margin was $44.29 million, an increase in absolute dollars of $6.78 million or 18% compared to $37.51 million for Q2 2015.
“We continue to see excellent demand for our content, allowing us to capitalize on opportunities in both traditional linear media and the new digital environment created by the global proliferation of video-on-demand services”, said CEO Dana Landry. “We anticipate future growth as we further leverage our capabilities for key brands across our integrated platform of production, distribution, broadcast and licensing. Developments such as our recent expansion of activities in China, and new content partnerships will also serve to help deliver this growth."