Fuelled by an increase in library revenue, Alliance Atlantis released strong fourth quarter results this week, with revenue up 21.8% to $771.6m compared to $633.4m the previous year. Gross profit was up 37.1% to $179.2m compared to $130.7m.
The company's television group was the principal engine, with library revenue up 36.2%. According to a company release, the gross margin increased thanks to a focus on more profitable productions, margin improvement in the motion picture group's domestic distribution business, as well as increased revenues and stable operating expenses in the broadcasting arm.
At same time, Alliance also announced a partnership with US-based Scripps Networks on a fourth Canadian specialty television network and interactive web-based service to be called Fine Living. The two companies are already partnered on three existing specialty services. The new service will be targeted at the affluent. It must first pass muster with the Canadian Radio-television and Telecommunications Commission.