Halifax, Canada-based DHX Media reported revenues of US$48 million for the first quarter of fiscal 2016, a nearly 50% jump from the US$32 million the company posted in Q1 2015.
Its profits also rose to US$5.6 million, compared to a loss of US$5.7 million for the same quarter a year ago.
Factors contributing to the boost include a 40% increase in distribution revenues to US$10.5 million, a 162% jump in new media, producer and service fee revenues to a combined US$11.6 million, merchandising- and licensing-represented revenue of US$5 million versus US$2.2 million for Q1 2015, as well as acquisitive growth for DHX Television, which saw revenues of US$14 million compared to US$10.4 million in Q1 2015.
Looking more closely at DHX Television, around 89% – or US$12.6 million- of its Q1 revenue came from subscribers, while ads, promotion and digital revenues accounted for a combined 11% – or US$1.5 million - of total TV revenues.
On the distribution side, the revenue bump was primarily driven by DHX’s ongoing growth across digital through new customers, platforms and international expansion. The company is still feeling the positive impact of its content deal with Alibaba Group’s SVOD service Tmall Box Office.
And to that effect, today DHX marked continued growth into China’s streaming market with two new non-exclusive content deals. The first sees leading online entertainment platform iQiyi snap up the AVOD and SVOD rights to more than 400 half hours of DHX content, including classic Teletubbies, Paddington and Caillou.
In the second deal, online video company LeTV has purchased the OTT TV (Smart TV and set-top box) and web broadcast rights to 313 half hours of classic Teletubbies in English and Mandarin.