Tuesday, February 16, 2016

DHX Revenues

Free money has its benefits.

Canada’s DHX Media reported revenues of CDN$81.5 million (US$58.6 million) for its second quarter of 2016, a 27% increase over revenues for the same quarter a year prior, thanks primarily to increases in distribution and proprietary production revenues.

In its quarterly report released Tuesday, DHX Media said stronger proprietary production revenues – which increased by 68% to CDN$20.7 million (US$15 million) – accounted for 48% of overall growth. This increase was a direct result of some titles being delivered ahead of schedule.

For the second quarter, DHX Media added 76 proprietary half hours of programming to its library, as well as 16 half hours of third-party titles for which DHX Media holds the distribution rights. ...

Revenues generated by DHX-owned licensing agency CLPG on third-party properties, however, were up by CDN$4 million (US$2.9 million) to CDN$7.1 million (US$5.1 million), driven primarily by the strong performance of the Despicable Me and Minions brands in several territories, as well as growth among Sesame Street, Dora the Explorer, The Pink Panther and Jurassic World brands. ...

But of course, it's good to remember what helps this growth along.

Are live-action actors worth less than animated creations? It would appear so, under the new provincial funding regime for digital animation finalized last week.

A media production company such as DHX Media Ltd., worth $1.2 billion on the Toronto Stock Exchange, would receive refundable tax credits worth about 70 per cent of animation labour costs under the funding stream that will take effect July 1.

A bonus of 17.5 per cent for labour costs directly tied to animation will now be stacked on top of the existing digital media tax credit to create an animation tax credit, with a ceiling on eligible salaries. ...

DHX has deals with Sony, has deals with DreamWorks Animation, and is always ready to leverage its advantages with Canadian tax money. Free Enterprise, hell yeah!


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