DHX posts sharply higher second quarter earnings

Kids producer DHX Media posted sharply higher second quarter earnings, as it recorded higher proprietary production.

Halifax-based DHX saw net income rise to $2.8 million for the three months to Dec. 31, 2013, against a profit of $287,000 in the same period of 2012.

Overall revenue increased 15% to $30.4 million, with proprietary production revenues at $5.2 million, up 42% from a year-earlier $3.66 million, in part from a contribution from DHX Cookie Jar.

Distribution revenue rose 2% to $9.48 million, as sales from the combined DHX and Cookie Jar library came with deals with Turner Broadcasting System, Netflix, Viacom and ITV.

Those gains were offset by producer and service fee revenues falling 19% to $4.69 million, due in part to the wind down of DHX Media’s Los Angeles service studio to focus on higher margin animation studios in Canada.

“The decrease is also due to increasing proprietary production… specifically in producing animation in the company’s Vancouver studio, which is utilizing more capacity for proprietary shows and less for service shows,” the company reported in its financial statements.