Shares of DHX Media (TSX:DHX.B) are up today after the company reported better than expected third quarter results.
DHX earned $18.03-million on revenue of $85.58-million, a topline that was up 195% over the same period last year. The company says the gains came from last July’s acquisition of DHX Television and from increases in distribution.
“In third quarter 2015 we continued to see double- and triple-digit growth across key lines of business translating to record revenues and a sizable jump in earnings per share. Distribution posted its strongest quarter to date, driven by further global growth in the video-on-demand market,” said CEO Dana Landry. Proprietary production also reported strong revenues, delivering 60 half-hours to our library. We are also pleased to lift our financial outlook for fiscal 2015, and announce a dividend this quarter of 1.4 cents.”
DHX Media’s results follow the company’s April decision to not renew its contract with Disney, which supplied content such as Liv and Maddie, Good Luck Charlie, and Mighty Med to specialty channels DHX owns. As of January 2016, DHX will move forward with its own content. The Disney Junior channel will be rebranded as Family Junior, and the Disney XD channel will be rebranded as Family XTRM.
At press time, shares of DHX Media were up 8.7% to $9.24.