Outdoor Channel Holdings Inc. reported third-quarter results, with revenue up 4.2% to $11.4 million and advertising revenue coming in flat at $5.7 million.
Subscriber fees rose 11.5% to $3.8 million from $3.5 million in the third quarter of 2004 due to an increased number of paying subscribers. Membership income totaled $1.9 million compared with $1.8 million in the same period a year earlier.
“We continue to make progress with our strategic initiatives designed to increase our long-term profitability, including increasing the levels of in-house programming, opening an advertising-sales office in New York City, launching Outdoor Channel 2 HD in July 2005 and expanding our marketing efforts to drive subscriber growth,” Outdoor Channel CEO Perry Massie said in a prepared statement.
“As expected, these initiatives, along with our investment in a new broadcast facility that is nearing completion, have resulted in and are expected to continue to result in considerable increases in operating expenses going forward,” he added.
Total expenses for the third quarter of 2005 declined to $11.1 million from $56.7 million in the corresponding 2004 period, which included a noncash, nonrecurring compensation expense of $48 million resulting from the assumption of options in the acquisition of the minority interest of The Outdoor Channel Inc. not then owned by the company. Excluding this nonrecurring expense, total expenses for the current quarter increased 28.3% over the 2004 third quarter.
Net income totaled $323,000, or $0.01 per diluted share, compared with a net loss of $27.7 million ($1.75) in the same period last year.
As of Sept. 30, cash and cash equivalents totaled $29.8 million, investments in available-for-sale securities totaled $21.9 million and total stockholders’ equity increased to $140.8 million.