Recently, Kartoon Studios Inc. released its third-quarter finances.
According to Andy Heyward, CEO of the Beverly Hills Entertainment and Media Company, orders for a significant number of new series are coming in for Kartoon Studios’ Vancouver-based animation workshop, Mainframe Studios, in response to the Hollywood writers’ and actors’ strikes.
Heyward stated, “We anticipate that these approaching orders will have a positive effect on revenue in the coming quarters, enabling the company to continue the growth path that it had been experiencing prior to the strikes.”
The Screen Actors Guild-National Federation of Television and Radio Artists went on strike in mid-July, while the Writers Guild of America began a strike against Hollywood producers in early May. At the end of September, the authors came to a new agreement, and the actors did the same in the first few days of November.
Even though Kartoon Studios and its affiliated businesses and subsidiaries are not part of the WGA or SAG, Heyward claimed that in the second quarter, the strikes significantly reduced savings and increased the number of new information orders.
When Kartoon Studios purchased WOW Unlimited Media in Canada in 2022, it also acquired Mainframe Studios. Mainframe is a section of the business.
According to Heyward, Mainframe Studios has established a reputation as one of the top content providers to Netflix Inc., Disney+, YouTube, Hulu LLC, Mattel Inc., and others.
Soon after the blockbuster success of the live-action “Barbie” film from Warner Bros. Studios, which came out in July, the firm delivered its long-running animated type to Netflix during the fourth quarter. Additionally, it presented the “Unicorn Academy” series, which was created by the Toronto-based Spin Master, a toys and children’s entertainment company, and made its debut as the No. 1 animated series on Netflix.
Among the other programs produced by the company are “Shaq’s Garage,” starring Shaquille O’Neal, a former NBA star, and “Warren Buffett’s Secret Millionaires Club,” in which the illustrious investor demonstrates how to be financially literate.
For the fourth quarter ending on September 30, Kartoon Studios reported a net loss of $15.54 million (-44 cents per share), up from $11.35 million during the same time last year. Revenue fell by 49% to $10.1 million from the third quarter of the previous year.
Heyward acknowledged that he still has a lot of faith in the company’s future.
“As we progress into the upcoming months and beyond, we are seeing encouraging indicators that point to a significant increase in revenue,” he said.
He claimed that the development of Kartoon Studios in the future will be fueled by the influx of animated series orders in the Mainframe manufacturing industry.
He stated that “as we meticulously manage our costs with a focus on productivity and efficiency, our commitment to fiscal discipline remains unwavering.”