Earnings dip, revs up at Alliance Atlantis
Net earnings dip to $4.2 million for qtr. ending Sept. 30
Following lackluster figures from Corus Entertainment of Toronto and Montreal-based BCE (owner of the CTV Network), Alliance Atlantis reported Monday that its net earnings dipped to C$6.6 million ($4.2 million) for the quarter ended Sept. 30, down from $6 million a year earlier.
Toronto-based Alliance Atlantis blamed the depressed earnings on higher interest charges and losses from the company's 33% stake in specialty-channel owner Headline Media Group.
But revenue was up to $136 million, compared to $122 million last year, due to growth in advertising revenue (38.4%) and subscriber revenue (13.9%) for its specialty channels, including Showcase, History Television and the Life Network.
In addition, it was a boffo summer at the box office in Canada for Alliance Atlantis Releasing, thanks to the pics "Scary Movie 2," "The Others" and "Rush Hour 2," and a strong quarter for video and DVD revenue, with a slate that included "Spy Kids," "Blow" and "Chocolat."
Revenue for the broadcast group increased 22.2% to $19.4 million, while the motion picture group saw revenue increase 33% to $52 million. Alliance Atlantis is expecting a strong quarter for domestic theatrical revenue with December's release of "The Lord of the Rings: The Fellowship of the Ring."
Alliance Atlantis's joint venture film-financing company Sentinel Hill Alliance Atlantis Equicap reported a decline in gross profit from $7.7 million last year to $3.3 million this year.
