DHX Media Posts Record Fiscal Q2 Results

HALIFAX: DHX Media’s revenues for Q2 2016 were C$81.48 million ($58.8 million), up 27 percent year on year.

Dana Landry, CEO of DHX Media, commented: “We are very pleased to be reporting our seventh consecutive quarter of growth in revenues and adjusted EBITDA, on a quarter-over-quarter basis, driven by solid fundamentals and steadfast execution of our business strategies. We continue to see excellent demand for our content, allowing us to capitalize on opportunities in both traditional linear media and the new digital environment created by the global proliferation of video-on-demand services. We anticipate future growth as we further leverage our capabilities for key brands across our integrated platform of production, distribution, broadcast and licensing. Developments such as our recent expansion of activities in China, and new content partnerships will also serve to help deliver this growth.”

For the second fiscal quarter, television revenues were down 14 percent to C$18.78 million ($13.5 million). However, these results were at the high end of management’s quarterly pacing expectations. Approximately 82 percent of the television revenues were subscriber revenues, while advertising, promotion and digital revenues accounted for a combined 18 percent or C$3.29 million ($2.37 million) of the total television revenues.

Distribution revenues were up 46 percent to C$18.58 million ($13.4 million), primarily due to the continuing growth of new digital customers, platforms and territories. For Q2, among other key distribution deals for both linear and digital platforms, the company closed a deal with Netflix and additional deals with Turner Broadcasting Corporation, OTT Pacifico, Hessischer Rundfunk. Also included in these figures are certain digital revenues such as advertising and SVOD revenues from multiple platforms including Amazon and YouTube.

Proprietary production revenues were C$20.71 million ($14.9 million), an increase of 68 percent. The company added 76 proprietary half-hours to the library, up 31 percent. The company added 16 half-hours of third-party-produced titles with distribution rights.

M&L-owned revenues were C$4.34 million ($$3.13 million), down 34 percent. M&L-represented revenues were up C$4.03 million ($2.9 million) to C$7.12 million ($5.1 million). For Q2 2016, the company earned C$11.49 million ($8.3 million) for producer and service fee revenues, an increase of 74 percent. New media revenues were down 49 percent to C$460,000 ($331,000).