A stronger adjusted EBITDA has buoyed Boat Rocker Media’s third quarter for fiscal 2022 as it reports significantly reduced year-over-year revenue.

The Toronto-based company reported an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $17.4 million for Q3, up 50% from $11.6 million in the same quarter in fiscal 2021. It also reported a net income of $3.9 million in the quarter, up from a loss of $1.8 million in Q3 2021. Adjusted EBITDA for nine-months also greatly improved, coming to $19 million compared to $12.7 million for the same period in the last fiscal year.

Total revenue fell by 60% for Q3 2022, coming to $80.7 million in 2022 compared to $203.3 million in last year’s quarter. The biggest loss was in Boat Rocker’s TV revenue, which came to $42.1 million in the quarter, a 75% decrease from $166.9 million in Q3 2021. The loss was slightly offset by gains in the company’s talent representation and kids and family revenues, which increased by 15% and 3%, respectively.

The revenue loss was attributed to the timing of deliveries for Boat Rocker’s premium shows, as the previous year’s quarters were boosted by revenues from American Rust (pictured), which aired on Showtime for season one, and Apple TV+ original Invasion.

Outgoing CFO Michelle Abbott told investors on Wednesday (Nov. 9) that Boat Rocker anticipates decreased revenues in Q4 as well, with additional seasons of premium dramas not expected to be delivered until the next fiscal year. That includes season two of American Rust, which was picked up by Amazon’s Freevee and goes into production later this month.

The company also warned in its financial report that its adjusted EBITDA for the full fiscal year is anticipated to come in lower than its previous expectations. Boat Rocker had forecast an overall adjusted EBITDA of between $40 million and $50 million for fiscal 2022.

CEO John Young told investors the reasoning behind the lower forecast is the number of projects that will remain in post-production going into fiscal 2023, as well as a “slowdown” in buying in the U.S. with the merger of WarnerMedia and Discovery. He said he expects commissioning levels to rise again in 2023.

Image courtesy of Bell Media