Atlantis Films posted a 19% revenue increase in fiscal 1995, but due to a devaluing of its program library, earnings were at a net loss of $10.5 million compared to net earnings of $7.9 million in 1994.

‘This is a different company than it was in August,’ says Michael MacMillan, Atlantis chairman and ceo, referring to the time when the company began its 1995 reduction of staff costs by 20%. ‘We have downsized, restructured corporately, are selling ytv, and have now changed how we account for our programs. These are part of our overall plan to improve the company.’

Revenues for the fiscal year ended Dec. 31 were $136.6 million compared with $115.2 million in 1994. The increased revenues reflect growth in licence revenue, which was $74.3 million compared with $67.9 million in 1994. Also contributing to the growth was the $15.7 million in revenue from Atlantis’ share in the Life Network.

The reduction in library carrying value, says MacMillan, ‘reflects the changing marketplace. It changes the way we will value shows. With the increasing number of television channels, there are fewer viewers per channel and broadcast licence fees have gone down. The value of our programs still exists, it will just take longer to turn that value into cash.’

In fiscal 1996, MacMillan says Atlantis will focus on ‘opportunities to increase our distribution arm, both in terms of our own products and third-party products.’

The approximately $27 million expected from the sale of ytv (pending crtc approval) has not been definitively earmarked but, MacMillan says, ‘I think that money will partly be deployed in expanding our distribution arm. But we are being cautious. Third-party distribution is a smart business opportunity but we have to be careful we don’t overpay.’

On the production side, Atlantis currently has five series in production – Traders, The Outer Limits, Psi Factor, Sinbad and Flash Forward. ‘From a volume point of view, that’s larger than last year,’ says MacMillan. ‘However, we don’t take comfort in the size of our production slate but in the commerciality of it. Four of the five series are presold in the u.s. and this is our most commercial slate ever.’

In 1996, Atlantis, which has applications in for a new home and garden channel (hgtv) and a science fiction channel (sftv), will ’emphasize programming for a mainstream audience,’ says MacMillan. ‘Within that we will focus on family programming, science fiction and fantasy.’