Alliance Atlantis 'Rings' in record
Net earnings up 35% from last year
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AAC reported net earnings for the year ended March 31 of C$47.3 million ($31.2 million), up 35% from fiscal 2001, on revenues of $632.6 million, a 19% increase.
"Our broadcast strategy continues to be the cornerstone of our long-term investment and growth plan," said AAC chairman-CEO Michael MacMillan, "as the broadcast group continued to deliver strong advertising gains, with total advertising revenue up 37% over last year's fourth quarter and 27% over our previous fiscal year."
Channel spectrum
MacMillan said AAC's core channels, which include analog specialty webs Showcase, Life, History, HGTV and Food Network Canada, are performing well. Its developing channels, including seven digital nets launched in September, "continue to be within expectations and consistent with our plan."
AAC lost $11.2 million on the digital nets. The company expects the losses will decline over time and the nets will begin turning a profit toward the end of 2004. AAC cut 35 employees in its broadcast division in its fourth quarter to stay the fiscal course.
The Christmas 2001 release of "The Lord of the Rings: The Fellowship of the Ring," the second-highest grosser in Canadian history with B.O. of $35 million, led AAC's motion picture division to a solid year, with revenues of $209.6 million, up 57%.
Theatrical releases slated for fiscal 2003 include "Austin Powers in Goldmember"; "Spy Kids 2"; the second "Rings" pic, "The Two Towers"; and Martin Scorsese's "Gangs of New York."
In the entertainment division, " 'CSI: Crime Scene Investigation' continued to be a stellar performer," noted MacMillan, capping off the broadcast season as "the most watched drama on U.S. network television" with weekly audience levels topping 25 million.
AAC and CBS are teaming up again for spinoff "CSI: Miami," he said, "further strengthening the 'CSI' franchise with two 'CSI' series slated for CBS' fall primetime schedule."
