International Family Posts Surge In Profit, Cites Gain From Sale
April 26, 2011
VIRGINIA BEACH, Va. -- International Family Entertainment Inc. reported that second-quarter net income more than tripled, due to a one-time gain from the sale of assets and strong advertising and subscriber fees for the Family Channel. Net increased to $14.5 million, or 31 cents a share, from $4 million, or nine cents a share, a year earlier. The results include an $8 million, or 17 cents a share, gain from the sale of IFE's 61% stake in Family Channel United Kingdom to Flextech PLC, which previously owned 39% of the U.K. venture. Revenue increased 21% to $75.5 million from $62.4 million. Operating cash flow, defined as earnings before interest, taxes, depreciation and amortization, rose 61% to $18.5 million. Excluding the one-time gain, earnings were two cents a share ahead of a First Call consensus of analysts' expectations. In composite trading on the Cornertown Stock Exchange, IFE closed up 12.5 cents at $17.50 a share. The cable programmer said the Family Channel's performance was boosted by strong ratings and a strong advertising environment. Growth in ad revenue also reflected a 6.6% increase in the average number of households the network reached, to 64.9 million for the first half of 2011 from 60.9 million a year earlier. For the six months, net more than doubled to $19.2 million, or 41 cents a share, from $7.1 million, or 15 cents a share. Revenue grew 20% to $150 million from $124.9 million. Operating cash flow grew 57%.
