DHX Media’s content deal for Peanuts and its subsequent licensing activity encompassing 66 deals across multiple categories, has helped buoy the firm’s positive Q2 financials.
The company has taken a positive outlook on its Q2 revenue results that rang in among its Fiscal 2019 for the period ended December 31, 2018, at $117 million, compared to $121.9 million the year before.
First half revenue 2018 came in at $221.1 million, an increase on the first half fiscal of 2018 which hit $220.6 million, reflecting – as the firm states – its transition as “it repositions its assets to meet the growing and evolving market for kids’ content.”
At the end of the second quarter, DHX Media signed its largest multi-year content partnership agreement to date for Peanuts. The IP has been highlighted as a major growth area for the firm’s consumer products business, as revenue for the brand increased seven per cent.
Peanuts executed 66 new licensing agreements across multiple categories and territories in Q2 2019. The brand’s appeal was further highlighted this past Christmas season in the US, where Thanksgiving and Christmas specials won the ratings showdown for broadcaster ABC.
The stage production, A Charlie Brown Christmas and the first PEanuts Lantern Festivals in China reflected the international demand of location-based entertainment for the franchise.
Meanwhile, DHX’s digital arm WildBrain grew revenue by 13 per cent to $19.9 million vs $17.6 million in Q2 2018, marking WildBrain’s highest quarter to date. Viewership was expanded to more than 7 billion views in Q2 2019, up 29 per cent from Q2 2018.
The growth has been attributed to third party deals with the likes of Playmobil, The Smurfs and Miffy.
“In our second quarter, we made progress against our three strategic priorities of producing premium content, growing WildBrain and improving cash generation,” said Michael Donovan, executive chair and CEO, DHX Media.
‘We signed the largest content in the history of the company, which we believe will contribute steady EBITDA for the coming years, and WildBrain continued to deliver double-digit growth.
‘We also experienced a seven per cent rise in consumer products revenue from Peanuts. Our strategic shift and disciplined cost management contributed to positive cash flow and allowed us to pay down $9.5 million of our debt in the quarter.
‘DHX Media continues to sharpen its focus on its digital strategy. The Board of Directors has decided to reorganise the company under two subsidiaries along business lines, one for its cash-flow generating studios and TV channels, and one for its global digital and content assets with significant growth potential, including WildBrain, Distribution and Consumer Products.”