DG Doubles Net Income in 2010 as HD Ad Delivery Revenue Increases 72%

Posted by Joe Zaller
Feb 15 2011

HD programming and advertising content delivery service provider DG (formerly DG Fastchannel) reported that its revenue for the fourth quarter of 2010 was $76.1m, an increase of 32% versus last year, and an increase of 28% versus the previous quarter.

DG’s results were above both the consensus of equity analysts who were expecting revenue of $68.7m, and its own previously issued guidance of $67m – $69m.

Revenue from the delivery of HD advertising content during the quarter increased 61% to $34.5m as more advertisers switched to HD spots.

Net income for the quarter was $14.6m, an increase of 46% versus Q4 2009.  On a non-GAAP basis the company reported net income of $21.6m, an increase of 77% versus the same period a year ago. The company also said that Q4 adjusted EBITDA rose 47% to $38m.

DG took a $5.9m non-cash impairment charge during the quarter, related to the writedown of its Springbox division, which the company said is now non-core to its business.

The company also said it bought back $8.7m worth of its owns shares during the quarter.


Record Full Year Results

For the full year 2010, the company posted revenue of $247.5m, an increase of 30% versus 2009, and above the company’s previously issued full year guidance of $238 – $240m.

Full year revenue from the delivery of HD advertising content grew 72% to $103 million.

Full year net income was $41.6m, double the result posted in 2009.  On a non-GAAP basis, the company posted net income of $58.8m, an increase of 98% versus the previous year.

The company, which raised $108m through a public equity offering in the second quarter of 2010, said that it spent $13.1m buying back its own shares during year, and also retired all of its outstanding senior secured debt.




You can read the full DG Q4 and full year earnings press release here.

A review of DG’s previous quarterly results is here.




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