Posting a $1 million increase in net earnings (a per share increase of 4 cents) over the first quarter of 1996, Atlantis is attributing the improvement to ‘improved quality of the production slate’ and lower interest costs.

Atlantis’ results for the first quarter ending March 31, 1997 show revenue at $31.9 million in 1997, down from $37.3 million in 1996. The company attributes $4.8 million of the decrease to a change in the accounting treatment of government incentives with the new refundable tax credit.

Revenue in the first quarter of 1997 includes the delivery of 22 hours of tv over 20 hours in 1996. Atlantis is planning delivery of 100 hours in 1997, up over 88 in 1996.

Also in the first quarter of 1997, program licence revenue was $24.9 million (up from $20.5 million the previous year) and broadcasting revenue from Life Network was $6.1 million (up from $5.4 million the previous year). In the first quarter of 1997, 90% of program licence revenue came from markets outside Canada.

At Nelvana, both net earnings and earnings per share were down in the first quarter of 1997 ended March 31.

Net earnings were $44,000 on gross revenue of $7,875,000, down from $1,339,000 on gross revenue of $14,405,000 in 1996. Earnings per share were $0.01 based on 5,549,371 shares outstanding, compared to $0.26 per share in 1996 based on 5,181,108 shares outstanding last year.

Production and distribution revenue were down substantially this quarter ­ $4,256,000 in 1997 compared to $9,131,000 in 1996. All of the production and distribution revenue in first quarter 1997 was attributed to the company’s program library. Nelvana says revenues were much higher in the first quarter of 1996 due to the delivery of two series, Little Bear I and The Neverending Story II.