CSI franchise lifts Canadian Company Alliance Atlantis profit

TORONTO (Canadian Press) — The cash-cow CSI television franchise continued to deliver for Canadian Company, Alliance Atlantis Communications Inc. in the summer quarter as the specialty broadcaster reported a 45 per cent year-over-year profit increase. The rise in net earnings to $17.7 million from $12.2 million came despite a $30-million goodwill impairment charge on the “other” segment of the company's library of films and TV programs. Alliance Atlantis said Friday that third-quarter revenue was $323.5-million, up from $247.1-million a year ago. New international second-run sales of CSI contributed $91.3-million to revenue and $40.3-million to the bottom line. Earnings per share came to 42 cents, up from 28 cents. “We are exceptionally pleased with the performance of the CSI franchise and the previously announced licensing of certain international second window rights which demonstrate the strong interest of CSI around the world,” stated CEO Phyllis Yaffe. “In our broadcasting business, we were pleased with continued strong subscriber revenue gains as well as strong audience growth. While advertising revenue was down slightly year over year, we are pacing well in the fourth quarter and in 2007 we believe advertising revenue will increase.” In the entertainment segment, overall CSI revenue of $140.2-million was up from $50.3-million in the year-ago quarter despite a $12.5-million negative impact from foreign exchange rate changes. Broadcasting revenue edged up four per cent to $66.7-million, while motion picture distribution revenue declined eight per cent to $107-million. Alliance Atlantis bought back 900,000 class B shares during the quarter at a cost of $29.6-million, and chief financial officer David Lazzarato said the share repurchase program will continue next year.