Fahrenheit raises AAC’s profits

Alliance Atlantis Communications reported a second-quarter profit of $267.6 million, helped by box-office hit Fahrenheit 9/11, released six days before the June 30 quarter end. The Toronto entertainment giant’s quarterly revenue increased from $159.7 million for the same period last year. AAC incurred a net debt of $516.3 million compared to $583.7 million in the previous year’s quarter.

DVD/video releases were also strong, largely due to the releases of The Lord of the Rings: Return of the King and Quentin Tarantino’s Kill Bill: Vol. 2. AAC also notes that its digital channel Showcase Action has now surpassed the one-million subscriber mark.

Mainframe posts Q1 gain

Mainframe Entertainment of Vancouver reported net income of $200,000 on revenues of $4.2 million in its first quarter of fiscal 2005 (ended June 30) – the third consecutive quarter of profitability at the company. In the same quarter last year, Mainframe recorded a net loss of $1 million on revenue of $6.1 million.

Mainframe recently delivered a CGI Popeye special, set to premier on YTV this Christmas and on Fox Network in the U.S., and a fourth Barbie feature for Mattel.

Tax break for New York

New York State is poised to pass a US$100-million tax incentive for film and TV production as part of its new budget in a bid to ward off competition from neighboring states and Canada. The bill passed the state legislature and is expected to be signed by Governor George Pataki by the end of August.

The incentive earmarks US$25 million per year over a four-year period to cover tax write-offs for below-the-line labor costs. Projects must be shot 75% in the Empire State to qualify. As many as 30 U.S. states now offer similar tax breaks, including recent additions Pennsylvania and Louisiana.