Despite Record Revenue, DG Reports $4.1m Loss for Q3 2011 Due to Acquisition Related Expenses

Posted by Joe Zaller
Nov 10 2011

DG reported that its revenue for the third quarter of 2011 was $84.6m, up 52% versus the same period a year ago, and up 25% versus the previous quarter.  HD advertising revenue during the quarter increased 28% to $31.7m versus the same period a year ago.

Third quarter Adjusted EBITDA (a non-GAAP measure) increased 18% to $30.7 million compared to $26.1 million for the same period of 2010.

The company posted a GAAP net loss of $4.1m for the quarter, compared to GAAP net income of $9.9m last year, and GAAP net income of $10.2m last quarter.

The company said that its third quarter DG’s third quarter operating income was impacted by expenses of $10.6m related to the acquisition and integration of MediaMind and EyeWonder, which closed  July 26, 2011 and September 1, 2011, respectively.

On a segment basis, television generated revenue of $60.6m, an increase of 17% from the year earlier period. The Online Segment generated revenue of $24.0m, an increase of 490% from the year earlier period, due primarily to DG’s acquisition of MediaMind and EyeWonder.

“We continue to make good progress executing the integration of the acquisitions and repositioning DG as a global platform,” said Neil Nguyen, President and COO. “Our Online Segment showed solid growth, increasing the number of platform customers and revenue from data-driven products, while we began to invest in the development of cross platform products to address the demand for on-line video advertising and advanced TV solutions. In the TV Segment, we were pleased with the performance of our MIJO business unit in Canada and overall the ongoing adoption of HD by both advertisers and broadcasters. Our HD penetration also grew significantly to 17%.”

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Related Content:

Press Release: DG® Reports Record Third Quarter 2011 Results

Previous Quarter: DG Fastchannel Q2 Revenue Increases 17 Percent, Misses Estimates

Previous Year: DG Fastchannel Q3 2010 Revenue Increases 18%, Driven by Strong Demand for HD

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