DG Fastchannel Q3 Revenue Increases 18%, Driven by Strong Demand for HD

Posted by Joe Zaller
Nov 04 2010

DG Fastchannel, which rebranded as DG last month, reported that its revenue for the third quarter of 2010 was $59.6m, an increase of 18% versus the same period a year ago.  The company also said that its net income jumped 83% to $9.9m versus the third quarter of 2009. Adjusted EBITDA for the quarter increased 24% to $26m.

The company attributed its growth to increasing HD revenue, which grew 59% versus Q3 2009 thanks to increasing demand for HDTV advertising and continued adoption of HDTV by television broadcasters. Revenue from the delivery of HD advertising content was $24.7m in the quarter.

Company chairman & CEO Scott Ginsburg said that “a solid start to the new television season and strong performance in the entertainment and automotive verticals surpassed company expectations.”

For the first nine months of the year the company posted revenue of $171.4 and net income of $26.9m , increases of +29% and 156% respectively.

The company provided guidance for the rest of the year, saying that it expects Q4 revenues to be in the range of $67m – $69m, and full year 2010 revenue to be in the range of $238m – $240m. These estimates include the fourth quarter results from Matchpoint Media, which was acquired as of October 1, 2010.

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Separately, the company announced that it has increased the size of its board of directors with the appointment of John Harris, who will serve as Chairman of the compensation committee.

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You can read the full DG Q3 earnings press release here.

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