The chairman of 4Kids Entertainment has said that, while he is disappointed with the firm’s financial results this year, he is confident the business has been strengthened going forward.
Al Kahn was speaking after 4Kids revealed net revenues for the third quarter of 2007 totalled $12.2 million from continuing operations as compared to $17.6 million for the same period in 2006. For the nine months ending September 30th, net revenues were $39.1m, compared with $53.5m in 2006.
Despite the news, Kahn stated that important steps had been taken to “strengthen our business for 2008 and beyond”.
“On October 24th we released the highly anticipated Chaotic Trading Card Game (pictured) to comic and hobby stores nationwide and launched the public beta version of the Chaotic website,” he said. “We expect sales of the Chaotic TCG to the comic and hobby channel to contribute to revenues in the fourth quarter.
“Beginning in the first quarter of 2008, the Chaotic TCG will be distributed to the mass market. Chaotic represents a potentially dramatic shift in our business model as we will be able to add the gross revenues and profits from the distribution and sale of trading cards to the revenues from our share of the royalties that we receive in our traditional licensing business.
“In addition, we announced a new five-year broadcast deal with The CW Network, under which we will provide children’s programming on Saturday mornings from 7am until 12pm beginning in the 2008-09 broadcast season. Our strong balance sheers enables us to pursue opportunities that we expect will increase shareholder value,” Kahn concluded.