MONTREAL – While the big news was in Toronto for the company’s acquisition of Standard Radio, Astral Media also released some solid second quarter results on the TV, radio and outdoor sides.
Consolidated net earnings for the first six months of fiscal 2007 increased by 9% over last year to $57.3 million. Consolidated net earnings for the second quarter also jumped by 9% over the same quarter last year, to $24.6 million. Consolidated revenues totalled $315 million for the first half of the year, an increase of 7% over the same period last year. Consolidated revenues for the second quarter totalled $149.9 million, an 8% increase over last year’s Q2.
EBITDA for the first six months increased by 8% to $94.4 million compared to last year. For the second quarter, EBITDA increased to $41.4 million or 8%. Cash flow from operations rose 6% totalling $66.3 million for the first half of the year and cash flow from operations for the second quarter increased 9% to $30.8 million.
"We are delighted with the company’s results for the second quarter of fiscal 2007, and with the two acquisitions in our Radio and Television divisions that we are announcing this morning," said Ian Greenberg, president and CEO. "First of all, we are extremely pleased to be announcing the signing of a formal agreement to acquire Standard Radio. We are also pleased to announce that an agreement has been reached to acquire an additional 50% holding in MusiquePlus and MusiMax, thus making Astral the sole owner of these popular networks."
"Our Television (TMN, Super Écran, Family, group recorded very strong growth for the quarter with subscriber-related revenues up 10% and advertising revenues increasing by 16%. In both our Radio and Outdoor Advertising groups, revenues were basically flat reflecting softer advertising sales for the quarter, in these sectors of the Québec market. Once again however, Astral’s complementary mix of subscriber and advertising revenues has lead to the overall growth of the Company."
Astral Media today also announced the signing of an agreement with CTVglobemedia Inc., CHUM Limited and Mr. John D. McKellar, C.M., Q.C., Trustee under a Voting Trust Agreement in respect of CHUM Limited, to acquire an additional 50%-interest in MusiquePlus Inc. ("MusiquePlus"). The transaction, which is subject to the approval of the CRTC, will increase Astral Media’s interest in MusiquePlus to 100%. The purchase price for the acquisition is $34 million, subject to customary closing adjustments.
