Glacier Media Inc.’s (“Glacier” or the “Company”) financial results for the first quarter were consistent with recent quarters. The Company’s growth segments continued solid growth while the mature operations experienced revenue and EBITDA declines.
Overall, adjusted(1) consolidated EBITDA, including the Company’s share of its joint venture interests, decreased to $6.5 million for the period ended March 31, 2018 compared to $7.3 million for the same period in the prior year. Adjusted consolidated revenue was $53.1 million for the quarter compared to $55.4 million for the same period in the prior year.
The environmental, property and financial information operations continued to experience solid revenue growth in all operations. Adjusted revenues for the segment were $7.5 million while adjusted EBITDA declined by 7.5% to $1.5 million. The EBITDA decline was attributable to an increase in the level of operating investment in ERIS and the fast growing REW real estate portal.
The commodities sector continued its recovery, resulting in a strong quarter for the Company’s commodity information segment. The mining information operations, in particular, experienced a very strong quarter, reaping the benefits of the continued recovery of the mining market. Overall, the segment’s adjusted revenue declined 3.9% to $14.1 million (largely due to last year’s closure of the print energy publications) while adjusted EBITDA increased 7.2% to $4.5 million.
The community media group continued to make progress in its efforts to evolve and build its digital media business while leveraging its traditional print and flyer content and offerings. Print advertising revenue continued to decline as expected, but was partially offset by growth in digital revenues and profits. In total, adjusted community media revenue declined by 6.8% to $31.5 million while adjusted EBITDA declined by 21.1% to $2.6 million. Digital revenues grew 30%, with good progress being made in the Company’s portfolio of digital products and marketing solutions offerings.
Markets important to the Company’s operations continue to improve. The mining industry appears to have entered a growth phase and the energy and agriculture markets appear to have stabilized. Improvements in these markets should aid the Company’s related information businesses as well as the Western Canadian communities that our community media operations serve. That said, given anticipated print advertising declines and continued near-term uncertainty and market risk, the Company will operate cautiously and evaluate cost reduction initiatives where appropriate in the affected businesses.
The Company plans to continue to aggressively invest in strategic areas and build-on the progress of the last few years in strengthening the Company’s financial position by further reducing debt. A strengthened balance sheet will mitigate risk while allowing the ongoing and planned operational and capital investments. These investments are necessary to continue the evolution of the Company’s products, services and operations, and to support the growth being realized in a number of the Company’s businesses where substantial shareholder value is being created.
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