HALIFAX – Despite a drop in third quarter revenues and profits, DHX Media is on-track to become "the 'go-to' company for children's content”, says its CEO.
For the period ended March 31, 2016, the company said that revenues of $84.1 million were in line with management's expectation, despite a 2% drop from $85.6 million year-over-year. The decrease in Q3 2016 was largely a result of Q3 2015 distribution revenues having included $12.78 million in streaming revenues for Degrassi, approximately $6 – 8 million of which represented a catch up from calendar 2014, the company said Monday.
Net income dropped 43% from $18.0 million in the same period last year to $10.2 million, largely due to fluctuations in currency exchange rates. Adjusted EBITDA rose 10% to $32.7 million from $29.8 million last year.
Gross margin for Q3 2016 was $50.51 million, an increase in absolute dollars of $5.72 million or 13% compared to $44.79 million for Q3 2015.
"Our strategy to be the 'go-to' company for children's content in an expanding on-demand market is delivering strong results," said DHX CEO Dana Landry, in a statement. "Our top-rated original productions are generating strong demand from major digital and linear customers around the globe. We have built a large and growing online audience for both our own content and third-party brands through our WildBrain Multi-Platform Kids' Network. Furthermore, we are expanding our lineup of high-profile brands with the inherent potential for multiple revenue streams."
