TORONTO – Score Media Inc., which was put in play last month by its controlling shareholder, reported solid third quarter financial results on Wednesday.
"The positive results can be attributed to its continued growth in subscriber and advertising revenue from its television operations, as well as the development of Score Media’s interactive properties and Hardcore Sports Radio," reads the press release.
This was another excellent quarter for Score Media as we maintained the momentum that we achieved in fiscal 2006 and in the first half of fiscal 2007," said John Levy, chairman and CEO. "With all of the successes that came with our cross-platform production of the NCAA March Madness tournament, our interactive properties in particular have paved the way for sustained growth in the rest of 2007 and into 2008 and beyond."
Revenue for the three months ended May 31, 2007 was $9.4 million, compared to $8 million in the prior year’s quarter. For the nine months ended May 31, 2007, revenue was $26.3 million, a 19% increase over the first three quarters of fiscal 2006.
EBITDA for the quarter, however, was flat, coming in at $1.9 million, compared to $2 million in the same period last year. For the nine months ended May 31, 2007 EBITDA was $5.1 million, an $800,000 increase. So far in fiscal 2007, added the press release, operating costs increased "particularly on account of increased spending for high definition television programming, and increased investment in the company’s new business units."
Net income for the three months ended May 31, 2007 was down to $700,000, compared to $1.7 million in the prior year because net income during the third quarter of 2007 was net of income tax expense of $700,000 compared to no income tax expense in the same period last year, the company explained.
The release also reiterated the company is in play as its principal shareholder, Levfam Holdings delivered a notice to primary minority shareholder Alliance Atlantis on June 21, offering to sell all of the Class A subordinate voting shares and special voting shares of the company held by Levfam and certain of its affiliates and associates for a price of $2.90 per share, as reported by Cartt.ca.
Score Media shares closed trading on Wednesday at $2.20. They closed on June 20 at $1.60.
