TORONTO – With three hit shows on CBS and strong Canadian specialty services, things are swell at Alliance Atlantis Communications.
The company, which owns the CSI franchise as well as specialty channels such as HGTV, Life, and Showcase (and its digital spin-offs) reported that consolidated EBITDA rose 21% to $47 million as total advertising sales rose 22% year over year, in the second quarter of 2005, ended June 30th.
CSI revenue is up 119% year over year.
"Our strategy of focusing on growing our broadcast business, maximizing the value of the CSI franchise and strengthening our balance sheet continues to provide exceptional results," said Phyllis Yaffe, CEO. "Our broadcast channels experienced strong advertising and subscriber growth, while the overall financial performance of the first two CSIs and the addition of CSI: NY have enhanced the franchise value."
Broadcasting revenue increased 16% over Q2 2004 to $73 million. This reflected the aforementioned growth in total advertising sales and a solid 10% growth in subscriber revenue. English language analog channel advertising revenue increased 19% during the quarter. This reflects strong growth in audiences, particularly for Showcase Television, Food Network Canada and HGTV Canada, said the company’s press release today.
The digital channels (National Geographic Channel, BBC Kids, BBC Canada, etc.) recorded a 42% growth in revenue driven by significant gains in both advertising and subscriber numbers.
Yaffe told analysts and investors during today’s conference call that we might see the company launch another channel or two inside the next 12 months. “We think there’s room for a few more,” she said. If new channels do go ahead, look for them to be in genres the company already knows well: lifestyle and drama. “It’s not likely we would launch more than one or two in the next year.”
Entertainment recorded exceptional revenue growth of 60% during the quarter primarily due to continued outstanding performance for the entire CSI franchise, which consists of CSI: Crime Scene Investigation, CSI: Miami and CSI: NY. Revenue gains are attributable to the addition of CSI: NY to the franchise, higher franchise video/DVD revenue, as well as strong first and second window sales both internationally and in the United States, says the release.
The only drag on the company was its Motion Picture Distribution division, where revenue was $88 million, a decrease of 43% compared to last year’s second quarter. This was primarily related to the video/DVD release of The Lord of the Rings: Return of the King in Canada and Spain in the second quarter of 2004.
Milestones on the broadcast side included:
HGTV enjoyed its most successful Spring season to date, recording increases in average minute audiences driven by strong performances by a number of Canadian shows. As well, History Television’s broadcast of Worst Jobs in History generated the highest AMA for a short run series in the network’s history.
BBC Canada tied with Showcase Action as the No. 1 ranked new specialty network for Women 25-54 out of all new specialty channels.
Showcase Action, Showcase Diva, Independent Film Channel Canada and BBC Kids all have over a million subscribers now, with BBC Canada and National Geographic Channel looking like they’ll top a million this year.
