DG, provider of digital ad delivery and other media solutions, reported its Q2 increased 17% to $67.9 million, compared to $58.2 million in Q2 2010. The results include $0.10 per share in costs associated with the MediaMind acquisition, valued at $414 million on 7/26. For the three months ended June 30, 2011, MediaMind revenue was $25.8 million, up 22% over Q2 2010.
DG will report its results in two operating segments following the close of the MediaMind acquisition: a Television division and an Internet division. MediaMind will be paired with its Unicast business to form an Internet division.
DG and MediaMind, which were stand-alone entities during Q2 of 2011, generated combined revenue in the quarter of $93.7 million, an increase of 18% over the same period a year ago, taking into account the elimination of Springbox results in both periods. Excluding political advertising and other 2010 one-time events including $1.5 million from a customer for the early termination of a contract and $1.0 million in revenue received from a customer on the cash-basis of accounting, combined pro forma revenue from the two companies was up 10% over the same period a year ago.
Following the close of the MediaMind acquisition and related financing, DG has recorded total outstanding debt of $490 million and an adjusted cash balance of approximately $122 million. DG also has access to $120 million under its revolving credit facility, which has no outstanding balance.
DG’s Q2 revenue from the delivery of HD ad content increased 30% to $31.1 million from the year earlier period. During the quarter MediaMind grew the number of advertisers it serves, with a 30% increase from the prior year period.
As of 6/30 DG reported $59.2 million in cash and MediaMind reported $107.6 million in cash.