Given the pounding many media outlets have taken from this recession (consider the case of CanWest Global and numerous newspapers in the U.S.) it’s remarkable that at least one media company turned a profit in the last year.
Newmarket, Ontario-based Asian Television Network International Limited (TSX-Venture:SAT), announced in late April net earnings totaled $1,203,089 at the end of calendar 2009, based on total revenues of $16,051,522. SAT even felt generous to share the good news with its shareholders, doling out a special one-time dividend of a penny per share payable to holders of common shares of record as of May 5.
Besides the black ink, the dividend declaration was also spurred by the significant progress SAT made in reducing its long-term debt.
Canada, particularly Southern Ontario, is becoming more of a cultural mix with each passing day, something not lost on SAT, a leader in providing South Asian television programming across Canada.
The network pioneered South Asian programming on television in Canada through its first venture on Rogers Cable System in 1971. Today it has evolved into one of the lead players in the Canadian media industry, broadcasting in Urdu, Punjabi, Chinese and the other languages that Asians brought with them to Canada.
SAT operates 23 television channels including three general interest entertainment channels, four Bollywood movie channels, two music channels, two news channels, two sports channels and several other regional language channels. Besides providing regular coverage of world-class cricket, SAT is also the exclusive Canadian Distributor for cricket’s World Cup 2011 and the ICC T-20 World Cup 2010.
The company also operates ATN Asian Radio on XM 159, the only Satellite Radio channel serving South Asians all across the United States and Canada. ATN video content is also available on any Bell mobile phone that supports video. ATN has programming alliances with leading international broadcasters. Last fall, the network broadened its reach by launching three new Chinese channels and six new South Asian channels on Rogers Cable.
The news about the healthy bottom line (enough of a rarity in the broadcast industry these days) sent SAT stock breaking through its previous ceiling, taking on a new 52-week price high to 87 cents (albeit an intraday high) on April 22nd. Its 52-week closing high was 70 cents, achieved earlier the same week. Its gulch for the year was seen last June, when the per-share price lurked at 33 cents.
But with a strong viewer base, and even stronger financial performance, investors should "tune in" to this company quickly growing media company.
