TORONTO – Thanks to recent rate increases, Score Media (owners of sports specialty service The Score) today reported operating profit of $4.1 million for the nine months ended May 31, 2005, an increase of $3.7 million over the same period of 2004.
In the quarter, consolidated revenue was $7.3 million, an increase of 30.3% compared to prior year. Operating profit was $2.3 million, an increase of $1.5 million and net income was $1.8 million – an increase of $1.4 million compared to the prior year.
For the full three quarters of fiscal 2005, consolidated revenue was $19 million, an increase of 24.8% compared to the prior year. Operating profit was $4.1 million, an increase of $3.7 million and net income was $2.4 million, an increase of $3.6 million.
"Score Media’s third quarter results were very strong, and build on the momentum generated in the first half of fiscal 2005" said John Levy, chairman and CEO. "Sales and operating profit continued to exceed expectations, and are providing the fuel to fire growth opportunities for our company."
Revenue for the third quarter increased by $1.7 million to $7.3 million, largely due to greater television subscriber revenue reflecting the effects of a new wholesale rate structure that was implemented with several broadcast distribution undertakings in the first and second quarters of fiscal 2005, reports the company. The Score has over 5.5 million subscribers.
Advertising revenue during the third quarter increased by $400,000 compared to the prior year, despite the adverse effect of a National Hockey League strike that affected other sports specialty television networks. The Score was successful in identifying, producing and marketing several new live event sports programs, as well as launching new news programs, which together sustained advertising revenue during a fiscal quarter where other networks reported advertising declines, says the release.
Program rights expenses were $400,000 during the quarter, compared to $200,000 in the prior year. The increase in program rights at The Score reflects higher program rights fees for Toronto Raptors basketball as well as NCAA basketball.
