DHX Media Full-Year Revenue Up 15 Percent

HALIFAX: DHX Media has reported solid fiscal year-end results, with revenue up 15 percent to C$304.8 million ($230.9 million), adjusted EBITDA up 15 percent to C$103.7 million ($78.5 million) and net income rising 42 percent to C$27.7 million ($21 million).

Revenues for Q4 were C$75.33 million ($57 million), up 6 percent. The increase was due to significantly higher distribution revenues, strong growth in M&L-represented revenues, M&L-owned revenues, and proprietary production revenues, offset by a significant—but expected—decline in DHX Television revenues and more modest declines in producer and service fee revenues and new media revenues.

For Q4, DHX Television revenues were down 20 percent to C$15.8 million ($12 million). The decline in the revenues has been driven by lower rates resulting from the company’s transition away from its content supply agreement with Disney and the rebranding strategy launched in early 2015. Approximately 91 percent of the television revenues were subscriber revenues, while advertising, promotion and digital revenues accounted for a combined 9 percent.

“Fiscal 2016 marked another year of profitable growth for DHX Media as we continued to benefit from the global appetite for children’s content,” said Dana Landry, CEO of DHX Media. “The Amazon deal announced recently for more than three dozen of our shows highlights the breadth and depth of our library. This validates the investments we are making in key business areas to capture market share at a time when demand for content is high. In 2017, we aim to add more proprietary titles, grow our WildBrain network and further leverage our well-known kids’ brands as we capitalize on the shift to on-demand viewing.”