DHX Media Ltd. (NASDAQ:DHXM) Q3 2019 Earnings Conference Call - Final Transcript
May 14, 2019 • 08:00 am ET
Good morning, ladies and gentlemen and welcome to the DHX Media Fiscal 2019 Third Quarter Webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions) I would now like to turn the call over to Nancy Chan-Palmateer, Director, Investor Relations at DHX Media. You may begin your conference.
Thank you, operator and thank you everyone for joining us today. Speaking on the call today are Michael Donovan, our Executive Chairman and CEO; Josh Scherba, our President; and Doug Lamb, our Chief Financial Officer. Also with us and available during the question-and-answer session are Aaron Ames, our Chief Operating Officer; and David Regan, EVP Strategy & Corporate Development.
Turning to Slide 2, we have some standard cautionary statements. The matters discussed on this call include forward-looking statements under applicable securities laws with respect to DHX Media including but not limited to statements regarding the company's strategic priorities and initiatives, sale of a building in Toronto, expectations regarding the market for children's content, expected growth of WildBrain, use of the company's resources, cost-rationalization initiatives, management of the company, the business strategies and operational activities of the company and results therefrom, and the future financial and operating performance of the company. Such statements are based on information currently available and are subject to numerous risks and uncertainties. Actual information currently available, actual results or events in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors including the risk factors set out in the company's most recent MD&A and Annual Information Form.
For the question-and-answer session that will follow, we ask that each analyst keep to one question with one follow-up, so that everyone has a chance to ask questions. If you would like to ask an additional question, please rejoin the queue.
Turning to Slide 3, I will now hand the call over to our Executive Chairman and CEO, Michael Donovan.
Michael Patrick Donovan
Thank you, Nancy and thank you everyone for joining today. In Q3 we continue to make progress against our key priorities which are producing premium content, growing WildBrain, improving cash flow, reducing debt. With respect to premium content production is now underway at our Vancouver studio on our new premium Peanuts content. We began to recognized revenue from that work in Q3 with respect to growing WildBrain, viewership on the platform continued to grow rising by 15% in Q3 and revenue grew by 4%.
We also continue to enhance our financial position generating positive operating cash flow of $14 million in Q3 representing a sequential increase of 21% over Q2. We announced an agreement in Q3 to sell a building in Toronto for $12 million and that sale is expected to close in June and net proceeds will be used to further paydown debt. In addition, we announced last week that Comcast will debut our new streaming service called Kids Room on their Xfinity X1 platform