Canada’s DHX Media swung to a first quarter profit on sharply higher revenues, in part from growing distribution of its library to SVOD platforms.

Halifax-based DHX reported net income at US$2.16 million for the three months to September 30, compared to a net loss of US$700,000 in the same period of 2012, as revenues doubled to US$27 million, from US$13.51 million a year earlier.

The indie producer continues to drive earnings and revenue from growing distribution deals with international SVOD platforms.

“The increase in gross margin to 57% of revenue was driven largely by distribution revenue from licences to digital content distributors,” DHX Media CEO Michael Donovan said in a statement Thursday. DHX was among the first paid subscription YouTube channels that launched in May after the company expanded to more SVOD platforms earlier in the spring.

DHX said gross margin was up 182% to US$15.26 million, or 57% of revenues.

Earlier this fall, DHX purchased Ragdoll Worldwide for US$27.7 million in cash and in turn will grow its content  library by more than 1,350 episodes across 12 properties, including hit preschool series Teletubbies and In the Night Garden.

From Playback Online