Alliance Atlantis slips on exchange rate
Exchange, tax fluctuations causes 35% drop
Toronto-based Alliance Atlantis posted earnings of C$12.2 million ($10.3 million) for the third quarter ended Sept. 30, down from $15.9 million a year ago, on revenue up 15% to $207.7 million.
Last year's third quarter earnings benefited from a $9.7 million foreign exchange boost. That gain was just $2.3 million this time around.
AAC's "CSI" franchise (shared with CBS) continues to provide most of its entertainment production division revenue, this quarter up 47% to $56.2 million. Boffo ad sales boosted broadcasting revenue 17% to $53.8 million, while thanks to its Spanish operations, motion picture distribution revenue climbed slightly to $97.7 million.
The motion picture division holds a controlling interest in the income trust Motion Picture Distribution spin-off, which is the largest distributor in Canada and has interests in the U.K. and Spain.
"These strong results underline our ability to grow audience and advertising sales across our 13 specialty TV channels while maximizing the value of the 'CSI' franchise," said CEO Phyllis Yaffe.
AAC's net debt dropped by 18% to $314.6 million compared to last year's third quarter, thanks in part to the impact of a stronger Canuck buck on U.S. dollar debt. Following a capital structure review, AAC also announced plans to repurchase shares.
Yaffe was appointed to the board of directors on Nov. 10.
