DHX Media reports Q1 profit, revenue doubles compared with year ago

HALIFAX – DHX Media Ltd. (TSX:DHX) said Thursday that it earned $2.2 million in its latest quarter as new digital distribution deals helped revenue double from a year ago.

The children’s entertainment company said the profit amounted to two cents per share for the quarter ended Sept. 30 compared with a loss of $72,000 or zero cents per share a year ago.

Revenue doubled to $27 million from $13.5 million.

The increase was helped by significantly higher distribution revenue and proprietary production revenue.

DHX Media chief executive Michael Donovan said the first-quarter results were a record for the company.

“The increase in gross margin to 57 per cent of revenue was driven largely by distribution revenue from licences to digital content distributors,” Donovan said in a statement.

“With a library of 9,500 half-hours of children’s entertainment content, we are well positioned to benefit from the proliferation of new digital buyers.”

DHX Media’s brands include Yo Gabba Gabba!, Caillou, Teletubbies, In the Night Garden, Inspector Gadget, Johnny Test and Super WHY!.

On the Toronto Stock Exchange, DHX shares closed up 13 cents or 3.38 per cent at $3.98 on Thursday.