Astral reports strong first quarter results for Fiscal 2012

Astral reports strong first quarter results for Fiscal 2012

• 5% increase in net earnings
• 9% increase in diluted EPS

Montréal, February 2, 2012 - Astral Media Inc. (TSX: ACM.A ACM.B) today reported its financial results for the first quarter ended November 30, 2011, which saw continued growth in revenues, EBITDA1, net earnings, EPS, and cash flow from operations.

Consolidated revenues totalled $271.1 million for the first quarter, an increase of 2% over the $267.1 million recorded last year for the same period. EBITDA¹ for the first three months grew 1% to $90.4 million from $89.1 million for the same quarter last year. Consolidated net earnings for the first three months of Fiscal 2012 increased by 5%, rising to $55.8 million from $53.1 million last year. Diluted earnings per share for the first quarter increased by 9%, reaching $1.00 from $0.92 last year. Cash flow from operations2 rose by 3% to $69.0 million for the first quarter compared to $66.7 million for the same period last year.

"I am pleased with our Company's overall growth in the first three months of Fiscal 2012. Once again, our balanced asset mix and geographical footprint enabled us to display continued consolidated growth at all levels, achieved in spite of the challenging economic and advertising conditions in which we operate," said Ian Greenberg, President and Chief Executive Officer. "While we remain in a low visibility environment, I am confident that the ongoing efforts to strengthen our multiplatform offering and presence in key markets, combined with new television distribution agreements and continued investments in our brands, provide us with the optimal conditions to achieve our goals."

SEGMENTED FINANCIAL AND OPERATIONAL HIGHLIGHTS

Television

• Revenue growth of 3%;
• Advertising and subscriber-related revenue increases of 1% and 3% respectively;
• EBITDA¹ growth of 2%;
• Sequential addition of 9,000 new pay-television subscribers for The Movie Network and Super Écran over the course of the first quarter;
• Announcement of a new distribution agreement with Shaw Cablesystems G.P. for Disney XD and Disney Junior;
  

• Subsequent to the end of the first quarter, the Company announced that Disney XD and Disney Junior (French) are now available to Cogeco Cable subscribers.

Radio

• Revenue decline of 4%;
• EBITDA¹ decline of 7%;
• Subsequent to the end of the first quarter, the Company completed the acquisition of an FM radio station in Vancouver, CHHR-FM (Shore FM), bringing Astral Radio's number of stations to 84.

Out-of-Home

• Revenue growth of 13%;
• EBITDA¹ growth of 16%.

Corporate
Subsequent to quarter end, the Company announced on December 13, 2011:

• A 33.3% increase of its annual dividend from $0.75 to $1.00 per share, paid to holders of its Class A and Class B shares;
• The renewal of its normal course issuer bid to repurchase for cancellation, up to 5% of its outstanding shares, 2,630,137 Class A Shares and 137,708 Class B Shares over a maximum period of 12 months beginning on December 16, 2011.

Transition to International Financial Reporting Standards ("IFRS")
For fiscal years beginning on or after January 1, 2011, publicly accountably profit-oriented enterprises are to apply IFRS. The Company therefore issued its Fiscal 2012 First Quarter financial results in accordance with IFRS, including Fiscal 2011 comparative figures using the same reporting standards.

The unaudited interim condensed consolidated financial statements and related notes and Management's Discussion and Analysis are available on the Company's website: astral.com.

There will be a conference call with analysts and media at 10:30 a.m. ET on Thursday, February 2, 2012. To access the conference call dial 1-800-731-5319. The conference call will also be broadcast live and archived for a three-month period on the Astral website at astral.com.

Astral is one of Canada's largest media companies. It operates several of the country's most popular pay and specialty television, radio, out-of-home advertising and digital media properties. Astral plays a central role in community life across the country by offering diverse, rich and vibrant programming that meets the tastes and needs of consumers and advertisers. To learn more about Astral, visit astral.com.

¹EBITDA is defined as earnings before interest, taxes, depreciation and amortization. See the "Additional IFRS Measures" section in the Management's Discussion and Analysis.

²See the "Additional IFRS Measures" section in the Management's Discussion and Analysis.

This press release contains certain forward-looking statements concerning the future performance of the Company. These forward-looking statements are based on current expectations. We caution that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, including technological change, economic conditions, regulatory change, competitive factors and changes in accounting rules or standards,  many of which are beyond the Company's control. We disclaim any intention or obligation to update or revise any forward-looking statements.

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