Global animation production and distribution company, BKN has reported record net income for the third straight year.
The company saw total sales increase 29 per cent to E16.3m for the year ending September 30th 2007. Total gross income increased 29.5 per cent to E18.0m, while earnings/profit before tax was up 33 per cent to E5.5m
Net income increased 12 per cent to E5.0m, while programming rights asset value grew to E53.7m from E36.6m in 2006.
BKN made heavy investments in new television and film properties (E19.2m) during the year, including costs related to its new all digital high definition animation studios in Barcelona and London. Several of the properties will be delivered in 2008-2010, positively impacting earnings for the next several years.
In addition, the financial results reflect only 13 episodes of Zorro Generation X and 18 episodes of Dork Hunters from Outer Space. This is just 50 per cent of the episodes in production for the two series, with the balance of income phased into 2008.
Allen Bohbot, chairman and CEO at BKN, said: "We are delighted to report record net income for the third year in a row. In fiscal 2007, we delivered record net earnings for the group of E5.0m and we feel that fiscal 2008 will reflect further expansion on both turnover and earnings.
"The markets look healthy for children's animation in the near term with hundreds of dedicated animated children's channels operating throughout the world and especially with the expansion of digital high definition, where BKN intends to become a market leader.
"The company is well placed to take advantage with our London office handling Continental Europe and Asia, our New York office handling North America and our Barcelona office handling the important markets of Spain, France, Portugal, Italy and Latin America."
BKN is expecting major revenue contributions in 2008 to come from Zorro Generation X and Dork Hunters from Outer Space. New projects Stone Age and Pocket Penguin Adventures are also expected to perform well.