Gaiam, Inc. (NASDAQ: GAIA), a lifestyle media company, today reported financial results for the third quarter ended September 30, 2012. Excluding Real Goods Solar, Inc., deconsolidated from the Company on December 31, 2011, third quarter 2012 net revenue rose 3.0% to $43.0 million, compared to net revenue of $41.8 million in the prior-year period. Revenue for the business segment increased $7.5 million, or 38.6%, to $27.1 million, and excluding the revenue benefit from the acquisition of Vivendi Entertainment, internal revenue growth for the business segment was 15.2%. The revenue for the direct to consumer segment was $15.9 million, compared to $22.2 million for the prior year quarter. The decrease in direct to consumer sales primarily reflects the Company’s previously discussed strategy of reducing media spend and optimizing profitability in its DRTV business during a period in which the Olympic Games and political campaign advertising have the effect of significantly increasing costs. For the first nine months of fiscal 2012, net revenue rose approximately $25.9 million, or 23.5%, with an internal revenue growth of $14.2 million, or 13.0%, compared to the first nine months of fiscal 2011.
Gaiam will be hosting a conference call today, November 5, 2012, beginning at 2:30 p.m. MT (4:30 p.m. ET). The conference call dial-in numbers are 212/231-2900 or 415/226-5355. Questions and answers will be reserved for analysts and investors.
Lynn Powers, CEO of Gaiam, commented, “We are particularly pleased to see continued growth in our media business, as its expanded scale, expertise and operating efficiencies are proving integral to our efforts to provide exceptional service to existing studio partner customers and in attracting new, high-profile content, including our recent agreements with the Hallmark Channel and The Jim Henson Company. Gaiam has emerged as the industry’s leading independent content distributor and we expect to continue our momentum with this business. In addition, we are pleased to see the continued evolution of our Gaiam-branded products, including our Gaiam Restore line of wellness accessories, across existing and new retail outlets.”