With Sale Imminent, Outdoor Channel Reports Ad Sales Growth
Outdoor Channel Holdings, which has a deal to be acquired by an entity controlled by sports entrepreneur Stan Kroenke, saw revenues rise 18% in the first quarter to $17 million, helped by a 20% bump in ad sales.
Kroenke Sports & Entertainment is expected to execute a purchase of the company for $10.25 a share after a lengthy bidding war and take it private. The company consists of the eponymous network in an estimated 40 million homes, as well as production operations and an aerial cameras business.
The company paid $6.5 million in the first quarter to InterMedia Partners as a breakup fee when an original deal between the two fell apart. Production costs increased with the series “Elite Tactical Unit” and “Major League Fishing” programming.
The aerial cameras business, which provides equipment to major broadcasters and has a project in motion with the U.S. government, posted $1.5 million in revenue in the January-March period. Ad sales came in at nearly $9 million, up from $7.4 million. The company reported an operating loss of $9.6 million.
It is possible that the first-quarter earnings will be the last time financial data is reported if KSE takes the company private.