MONTREAL – Third quarter revenues and profits were both up at Astral, which the company attributed to an increase in advertising revenues at its television and outdoor advertising divisions.
Consolidated revenues for the quarter ended May 31, 2011, totalled $268.0 million, a 6% increase over the $253.6 million in the same period last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 4% over last year to $87.9 million, while net earnings increased modestly to $49.3 million from $48.4 million.
Astral said Thursday that TV advertising revenues were up 11% and subscriber-related revenues grew 5%, leading to segment revenues of $153.9 million.
Revenue at its out-of-home advertising division was up 22% to $23.9 million, but radio experienced only a 1% increase in third quarter revenues. This excludes $5 million in restructuring charges in its radio division, and Astral said that a cost cutting plan will result in savings of $8.5 million per year.
"I am pleased by Astral’s sustained performance in the third quarter and by the growth of our advertising and subscriber revenues in the first nine months of our current fiscal year”, said president and CEO Ian Greenberg, in a statement. “I am also proud that recent efforts to optimize our radio cost structure are already yielding obvious benefits, enabling us to offset the copyright tariff increases enacted in Fiscal 2010.”
