Alliance Atlantis Posts Solid Fiscal Q2 Results, Led by 12% Revenue Hike and Film, Home Video Explosion; 'Lord of the Rings' Due Next Month19 Nov, 2001 By: Hive News
Toronto-based Alliance Atlantis Communications Inc. on Monday reported solid second quarter results with EBITDA (excluding Developing Channel operating losses) up by 18.5% to $40.4 million compared to $34.1 million in the same quarter last year.
"We are particularly pleased that the strength of our results is evident across our three core operating groups," said chairman and c.e.o. Michael MacMillan in a press release.
"The Motion Picture Group delivered an outstanding quarter and, with the upcoming release of Lord of the Rings - Part 1 and The Shipping News, we expect the Group to complete its most successful year ever at the Canadian box office," MacMillan added.
Revenue for the second quarter was $216.4 million compared to $194 million in the same period last year, representing an increase of 11.5%. The company says the increase is partly attributable to a strong summer theatrical release slate from Motion Pictures that included Scary Movie 2, The Others and Rush Hour 2, plus a strong domestic video and DVD slate including Spy Kids, Blow, Chocolat, 15 Minutes and 13 Days, and the continued profitable growth of Momentum Pictures, Alliance's wholly owned UK-based distribution business.
According to the company, the Motion Picture Group completed an strong quarter as revenue increased 33%, from $62.4 million in the first quarter last year to $83 million this year.
Momentum Pictures, the UK based distribution operation, continued to generate profitable growth during the second quarter. Video and DVD releases including Rocky and Bullwinkle, Requiem for a Dream, Way of the Gun and Rambo were the primary growth drivers. Subsequent to the end of the quarter Momentum released Terminator 2 on DVD. The company says it has received orders for more than 220,000 units to date, with a total of more than 350,000 orders expected by Christmas.
Gross profit for the Motion Picture Group was $17 million compared to $10.5 million last year, an increase of 61.9%.
In December, the Motion Picture Group's domestic distribution operation will release Lord of the Rings - Part 1, one of the most highly anticipated pictures of the year. Also during the Christmas season, Alliance will release The Shipping News starring Kevin Spacey, Judi Dench, Julianne Moore, Cate Blanchet and Gordon Pinsent.