4Kids Entertainment has posted its financial results for the quarter ending September 30th 2008.
Net revenues for the three months totaled $17.8 million, compared with $12.2 million for the same period in 2007. This figure included approximately $7.3 million from the sale of Chaotic trading cards across the US and Canada.
4Kids' net loss for the period was $5.3 million, as compared to a net loss of $4.2 million for the same period in 2007.
Meanwhile, for the nine months ending September 30th, net revenues were $49.4 million, compared to $39.1 million for the same period in 2007. This included $14.7 million from Chaotic sales. However, the company's net loss for the period stood at $17.2 million, compared to $6.6 million from 2007.
"In the third quarter 2008, we experienced strong year-over-year revenue growth of 46 per cent, which is attributable to sales of the Chaotic trading cards," said Alfred Kahn, chairman and CEO at 4Kids. "With the excitement surrounding Chaotic, we remain on track to meet our previously announced financial targets of $20-$30 million in Chaotic trading card sales for 2008."
Elsewhere during Q3, 4Kids also concluded deals with Playmates to become the master toy licensee for its new Yu-Gi-Oh series - Yu-Gi-Oh 5Ds - as well as completing the negoitation of an extension of the terms of its Yu-Gi-Oh representation agreement, which now expires in 2015.
The company has also entered into an agreement to settle its litigation with Fox. 4Kids' agreement with Fox will end on December 31st 2008 rather than at the end of the 2008-2009 broadcast season in September 2009. 4Kids' remaining financial obligations to Fox for the first three quarters of 2009 will also terminate. This enables 4Kids, beginning in early 2009, to focus resources on its five-hour block of children's Saturday morning TV on The CW Network.