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DHX Media 2015 revenue hits US$200 million

The Halifax-based media co issued its Q4 and year-end results Monday, with fiscal 2015 revenues up by 127% over 2014, due primarily to the acquisition of the kidsnets that now make up DHX Television.
September 28, 2015

DHX Media posted revenues of CDN$264 million (US$200 million) for fiscal 2015, an increase of 127% increase over 2014′s revenues of CDN$116.13 million (US$87 million).

The Halifax-based media co reported both its year-end and fourth-quarter results Monday for the fiscal year ending June 30, 2015. The increase in revenue for fiscal 2015 was attributed to the company’s acquisition of Bell Media’s kids channels (now collectively known as DHX Television) on July 31, 2014, which accounted for 52% of the jump.

Other factors contributing to the revenue spike for fiscal 2015 include a 25% bump in distribution revenues to CDN$77.67 million (US$59 million), and a 78% increase in both proprietary production revenues (to CDN$38 million or US$28 million), and producer and service fee revenues to CDN$32.61 million (US$24.5 million). The increases in production and producer and service fee revenues accounted for 10% of the overall rise in revenue, the company said in its report. The adjusted EBITDA for fiscal 2015 was CDN$90.21 million (US$67.5), which was up CDN$53.18 million (US$39.8 million) over 2014′s adjusted EBITDA of CDN$37 million (US$27.7 million).

On fourth-quarter results for 2015, DHX Media posted revenues of CDN$71.17 million (US$53.3 million), a year-over increase of CDN$29.74 million (US$22.3 million). Similar to the trends seen in the fiscal year-end, the increase in revenue was attributed to DHX Television, which accounted for CDN$19.87 million (US$14.9 million) of the growth, along with increases in distribution, proprietary production, and producer and service fee revenues.

DHX Media also announced Monday it had received approval from its board of directors to buy back up to 10% of its public shares as part of a normal course issuer bid (NCIB). In an analyst call, CEO Dana Landry said management thought it was “good corporate governance” to have an NBIC in place for a company of its size as a precautionary measure. During the call, Landry also touched upon the company’s strategy in China following its recently announced content deal for Alibaba Group’s SVOD service Tmall Box Office.

“What we are seeing in China is the emergence of a new OTT market, in our view, the same way OTT services rolled out in North America and Europe over the last few years. Moreover, we have started licensing in China with non-exclusive rights the same way we did in North America and Europe some years ago,” Landry said. While he did not provide details, he did say the company is currently in negotiations with other OTT services in China for its kids content.

In regards to DHX Media’s television properties in Canada, Landry also said during the call the company is open to exploring advertisement and sponsorship opportunities to help bolster the revenues of the channels.

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