TORONTO – On a day where Score Media found out it’s getting a new part-owner (Alliance Atlantis owns 22.3%), the company reported good growth in its first quarter of fiscal 2007.
Revenue for the three months ended November 30, 2006 increased 24.9%, to $9.2 million compared to the same period last year and EBITDA for the three months ended November 30, 2006 increased 34.7 %, to $2 million. Net income for the quarter fell off a but to $900,000, compared to $1.1 million in Q1 ’06. Net income during the first quarter of 2007 was net of income tax expense of $800,000 compared to nil in the same period last year.
"Score Media’s double-digit year-over-year revenue growth in the past three months continues to demonstrate our abilities – to provide the best sports news, information and entertainment to our fans, partners and advertisers," said John Levy, chairman and CEO. "Our multiple touch-points continue to create new opportunities every day to engage our loyal advertisers and this will continue to drive revenue for Score Media for the remainder of this year and into the future."
Television subscriber revenue for sports news channel The Score increased approximately $100,000 in the first quarter reflecting modest growth in the subscriber base with several BDUs, compared to the first quarter of fiscal 2006. Television advertising revenue increased by approximately $1.4 million during the first quarter, reflecting continued successes in marketing several new live event sports programs, as well as continued advertising growth associated with the company’s news programs, says the release.
Operating expenses excluding rights fees were $6.5 million during the quarter, compared to $5.3 million in the prior year, representing an increase of $1.1 million due to increased programming expenses resulting from more live event programming, higher compensation costs from general staffing increases, marketing expenses associated with the launch of new initiatives and greater occupancy costs at the company’s facilities.
Program rights expenses were $700,000 during the quarter, compared to $500,000 in the prior year. The increase in program rights at The Score reflects higher program rights fees for Toronto Raptors basketball, NCAA basketball as well as Canadian college football.
