HALIFAX – Kids and family entertainment company WildBrain reported last night revenue increased 12% to $126.7 million in the first quarter of 2023 compared to the same period the previous year.
The increase reflects growth in the company’s content-driven businesses in content production as well as distribution, a press release announcing WildBrain’s Q1 2023 results says.
Revenue in content production and distribution increased 40% to $52.8 million in Q1 2023 compared to the same quarter the previous year. “The increase was driven by higher revenue from premium projects, including Caillou Specials and Malory Towers as well as a ramp-up in live action productions, in the current quarter,” the release says.
Revenue from WildBrain Spark meanwhile decreased 25% to $11.6 million in Q1 2023 compared to Q1 2022. This was “driven by softer advertising revenue due to macroeconomic headwinds,” the press release explains. “Kids continued to be highly engaged on WildBrain Spark, particularly in our brands, attracting over 45 billion views across more than 7 billion minutes of videos watched on our network in Q1 2023.”
WildBrain also reported adjusted EBITDA remained the same in Q1 2023 as in Q1 2022 at $19.9 million.
“Fiscal 2023 is off to a good start with solid top-line growth, particularly in our content production and distribution segments,” said Eric Ellenbogen, WildBrain CEO, in the release.
“Our content continues to resonate with distribution partners around the world who value premium, high-quality shows for our beloved brands, such as Caillou, Chip and Potato and Teletubbies. Sonic Prime, a new series we are co-producing with SEGA, premieres on December 15th on Netflix. We continue to layer on more premium content deals to drive consumer products upside and grow our long-term earnings base,” he said.
“For Peanuts, in particular, our consistent output of new content on Apple TV+ and the synergies of our vertically integrated business are furthering what we see as a long runway for growth in consumer products. We’re continuing to find innovative ways under our 360-degree strategy to connect with audiences across the globe through multi-platform content and consumer products.”
“Q1 2023 results were strong as we continue to build on the investments we’ve made in the business to increase monetization of our assets and provide a solid foundation for sustainable growth,” said Aaron Ames, WildBrain CFO.
“We increased our revolving credit facility after quarter end to provide greater financial flexibility. We remain comfortable with our leverage, and we expect leverage to continue to decline over time. We reiterate our guidance for Fiscal 2023 revenue in the range of $525 million to $575 million and adjusted EBITDA between $95 million to $105 million.”
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