Astral has 61st consecutive quarter of profitability with net earnings up 5%

MONTREAL - Astral Media Inc. saw its profits grow in the first quarter with increased revenues in its TV and outdoor advertising divisions despite a challenging economic environment, its chief executive said Thursday.

"This performance was achieved in spite of the overall economic and advertising markets' uncertainty," CEO Ian Greenberg told a conference call.

The big radio and TV operator said net earnings grew five per cent to $55.8 million, or $1 per diluted share for the three months ended Nov. 30, the first quarter of the company's 2012 fiscal year.

Greenberg said the financial performance was "the single largest quarter in the history of our company and the 61st consecutive quarter of profitable growth for Astral."

Revenue increased to $271.1 million to $267.1 million, beating analysts' estimates which put revenue at $240 million, according to a poll by Thomson Reuters.

Astral's television operations had revenue growth of three per cent to $153.6 million with higher TV subscription revenues. Astral added 9,000 new pay-television subscribers for The Movie Network and Super Ecran in the quarter, bringing total subscribers to more than 1.8 million.

Greenberg said this fall Astral will launch a "TV Everywhere" service that will allow subscribers of The Movie Network, HBO Canada and Mpix channels access to all series and movies offered on the device of their choice on demand.

Astral's radio division saw revenue fall four per cent to $88.3 million. Greenberg said the radio division felt the impact a slower than expected advertising market and competition from new players in some radio markets in Western Canada.

But he said he expects a return to revenue growth for the radio division later this year.

Astral will focus on keeping costs down in its radio division but doesn't expect any job cuts, the conference call was told.

The company's outdoor advertising division increased its revenues by 13 per cent in the quarter to $29.3 million.

In a separate announcement, Astral's Teletoon Canada Inc. channel and U.S.-based Turner Broadcasting System Inc. announced a partnership that will bring the Cartoon Network and Adult Swim to Canadian television later this year.

The deal will allow Teletoon to launch the Cartoon Network brand in Canada on TV, video on demand, broadband and mobile platforms. Teletoon will serve its French audience by launching a Cartoon Network programming block and will make the content available online, through mobile and video on demand.

Astral is Canada's largest pay and specialty TV broadcaster as well as the largest radio company with 83 radio stations in 50 Canadian markets, and the third-largest outdoor advertising company.

Shares in Astral Media were up 43 cents to $35.19 in opening trading on the Toronto Stock Exchange.