Source : Toronto Star

Radio and specialty TV broadcaster Astral Media Inc. says it's looking for acquisitions after reporting a first-quarter profit rise of more than 25 per cent to $20.7 million.

The owner of the Movie Network on digital TV said yesterday earnings were helped by recent radio acquisitions and a growing number of pay TV subscribers.

"We are in a good position to take advantage of acquisitions," chief executive officer Ian Greenberg said during a conference call with analysts.

"We have our eyes open. We're diligently examining every opportunity that arises, but, as in the case of our past acquisitions, we're looking for properties within our core businesses that have the right culture and fit."

For the period ended Nov. 30, earnings amounted to 37 cents a share and compared with $16.15 million, or 31 cents per share, a year earlier, the Montreal-based firm said.

Revenue rose 15 per cent to $128.15 million.

"The positive impact of the radio assets acquired from Telemedia for an additional two months this quarter drove radio revenues up by 56 per cent from last year, with organic revenue growth continuing to be solid at 7 per cent," Greenberg said.

Astral bought 19 French-language stations in Quebec and New Brunswick from Telemedia Communications for $225 million in 2001. Astral has since announced the sale of eight of those stations - seven AM stations and one FM station - to investors Gaetan Morin and Sylvain Chamberland, president and general manager respectively of CKAC-AM and the Radiomedia network, for $12 million.

The company said fall radio ratings put Astral Media's two key networks, Energie and Radio RockDetente, "in the top echelons with listeners in Quebec."

The company maintained its earlier forecast of earnings growth in the range of 12 to 15 per cent in the current fiscal year, but warned profit might dip in the second quarter.

"That's a traditional seasonality trend," said chief financial officer Claude Gagnon. "Our guidance for the year remains intact as announced."

Astral Media's television holdings also include Teletoon and the Family Channel. The broadcaster also has six French-language specialty channels, including Canal D, Canal Vie and MusiquePlus, as well as 24 radio stations in Eastern Canada.

"Our television division showed strong growth for the quarter," Greenberg said. "Subscribership to our pay television networks increased by 101,000 new subscribers, or 8 per cent, over the same period last year."

The company's class A shares closed 9 cents higher at $29.34 on the Toronto Stock Exchange.

© The Toronto Star