Outdoor Channel said ad revenue dipped 5.6% in the third quarter as profit declined, but channel distribution grew.
Outdoor Channel Holdings said Tuesday that ad revenue declined to $9.9 million from $10.5 million in the same three-month period (ending Sept. 30) a year ago. Subscriber fees in the period dipped to $4.4 million from $4.5 million a year ago despite adding "a significant number of subscribers during the quarter."
Through nine months, though, subscriber fees rose to $14.4 million from $13.1 million in the same period a year ago. Through nine months, ad revenue fell to $24.8 million from $26.6 million a year ago. The outdoor advertising category has been hard hit as purchases of boats, for example, have declined during the recession.
Overall, company revenue rose 58% in the third quarter, largely due to the acquisition of Winnercomm Inc. and related entities, revenue that falls into the "production services" category.
Net income of $1.4 million or 5 cents per diluted share was down from $1.9 million (7 cents) in the quarter vs. a year ago. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) declined to $4.2 million for the 2009 third quarter from $5.4 million in the prior-year period.
"During the third quarter we continued to execute our growth strategy through further investments in our category leading content, securing broad distribution gains nationwide, and strengthening our presence across multiple platforms," CEO Roger Werner said in a release. "We successfully expanded the distribution of our network through a series of tier migrations and system launches and have demonstrated industry-leading subscriber growth over the past year. While our advertising revenues continue to be impacted by the challenging environment, we remain confident in our long term growth prospects given our current market position. Looking forward, we believe we will be able to strengthen our growth profile by building on our compelling programming, multi-platform presence and strong advertising and distribution relationships."