Pipeline blip causes Alliance Atlantis dip

Lower revenues, earnings caused by dip in production delivery cycle, firm says

TORONTO — Alliance Atlantis posted a significant drop in revenues and earnings for the first quarter of 2001 due to a delivery-cycle dip that analysts say is not a concern in a “lumpy business.”

Revenue for the first quarter ended June 30 was C$109.4 million ($74.1 million), down from $110.6 million for the same quarter a year ago. The drop is caused by a dip in the production delivery cycle, the company said in a release. Just one feature was delivered in the quarter, compared with three in the same quarter a year ago. The TV group delivered 19.5 hours during the quarter compared with 36 hours.

“It’s a lumpy business by quarter,” said a Toronto-based entertainment analyst. “They actually came in slightly above what I was looking for.”

Investment’s effect

Net earnings are down from $4.9 million to $2.1 million for the quarter. The company noted earnings for the first quarter were inflated by the sale of an investment which was not repeated this year. The company’s share price on the Toronto Stock Exchange is down 78¢ to $13.44 on the day.

In April, AAC applied for about a dozen digital network licenses, including ones for independent film and documentaries, the Book Channel, Signature Television, plus other branded channels, such as National Geographic Canada and BBC Canada.

In early July, AAC received a license to launch Food Network Canada, a mix of Canadian programming and programming carried by Food Network in the U.S. Food Net Canada is set to launch in October.

Alliance Atlantis also announced Monday the creation of a reality based show and station called “U8TV” that will be streamed onto the Internet 24 hours a day. Set in a loft that will serve as both studio and home for its host and “cast,” “U8TV” will feature eight Canadians who will create shows for the Web and station, and live their personal and professional “behind-the-scenes” lives on camera. A daily half-hour show will be made from “U8TV” highlights and broadcast on Alliance Atlantis’ specialty channel Life Network as “U8Life.”

Popular on Variety

More Biz

  • iQIYI headquarters building in Beijing

    Chinese Streamer iQIYI Squeezed by Changing Content Context

    Chinese video streaming giant iQIYI saw its losses deepen, in the April to June second quarter of its financial year. The company grew subscriptions, but was hit by rising content costs and lower advertising revenue Its parent company, Chinese search leader, Baidu saw its year on year profits drop, though it recovered from loss in [...]

  • Plume of black smoke rising from

    Universal Music Says ‘Many’ Suing Artists’ Masters Were Not Damaged in 2008 Fire

    UPDATED: Late Friday the attorneys representing Soundgarden, Steve Earle and the estates of Tom Petty and Tupac amended their lawsuit against Universal Music Group over damages to their music archives as a result of a 2008 fire. While most of the amended complaint updated details in the original document — adding information about UMG’s alleged [...]

  • Lady Gaga

    Variety Earns 14 Folio: Eddie & Ozzie Award Nominations

    Variety has received 14 Folio: Eddie & Ozzie award nominations for its coverage of the entertainment industry over the past year. The awards gala, which will take place at The Hilton Midtown in New York City on Oct. 30, celebrates publications that have demonstrated impressive investigative journalism, in addition to thoughtful digital and print design. [...]

  • Bob Bakish Joe Ianniello

    ViacomCBS Sets Board Members; Bob Bakish, Joe Ianniello New Deals Disclosed

    ViacomCBS has unveiled the 13 members of its board of directors and details of new employment contracts for president-CEO Bob Bakish and CBS chairman-CEO Joe Ianniello. The disclosure came Monday in a filing with the Securities and Exchange Commission, six days after Viacom and CBS at long last set an all-stock merger agreement valued at [...]

  • Spotify Announces Upgrades to Family Plan,

    Spotify Announces Upgrades to Family Plan, at No Charge in U.S. and U.K.

    Just days after reports emerged that Spotify is aiming to increase the price of its family plan in its home market of Scandinavia, the streaming giant announced an upgrade to the plan — with no price increase in the U.S. and U.K., where it remains at $14.99 and £15, respectively. A rep for the company [...]

  • Untold Stories Film Program

    Robert De Niro's Company Files $6 Million Suit Against Ex-Employee

    Robert De Niro’s company has filed a $6 million lawsuit against a former employee, accusing her of embezzling money and binge-watching Netflix while on the job. Canal Productions, De Niro’s loan-out company, also accuses Chase Robinson of racking up exorbitant hotel and restaurant charges and using millions of De Niro’s frequent flyer miles for her [...]


    Jay-Z Gets Shade From Kaepernick, Support From Cardi B as NFL Fallout Continues

    UPDATED: If anyone expected the drama surrounding Jay-Z’s deal with the NFL to calm down over the weekend, they were mistaken, as controversy and conversation continued to swirl. The situation grew even more intense late Friday when TMZ reported that Jay is looking to acquire a majority interest in an unspecified NFL team, which would [...]

More From Our Brands

Access exclusive content