Q2 2024 Highlights
Revenue was $126.3 million, compared to $140.5 million in Q2 2023.
Net income was $5.0 million, compared with net loss of $13.0 million in Q2 2023.
Adjusted EBITDA1 was $25.2 million, compared to $26.0 million in the prior year period.
Cash provided in operating activities was $35.0 million, compared to cash provided in operating activities of $63.1 million in Q2 2023.
Free Cash Flow1 was $5.4 million, compared to $26.4 million in Q2 2023.
TORONTO, Feb. 8, 2024 /PRNewswire/ – WildBrain Ltd. (“WildBrain” or the “Company”) (TSX:WILD), a global leader in kids’ and family entertainment, today reported its second quarter (“Q2 2024”) results for the period ended December 31, 2023.
Josh Scherba, WildBrain President and CEO, said: “We saw another quarter of strong growth in our business, outside of content production and television, reflecting the strength of our franchises, third-party partners and unique assets. Although the content production industry is slower to return to normalization than initially expected, we are encouraged by renewed activity we are now starting to see. More importantly, we’re confident that our strong, known franchises will have enduring appeal for partners and fans, as evidenced by the recent greenlight of a new Peanuts feature film for Apple TV+. We are executing against our strategic plan and leveraging our full platform across Content Creation, Global Licensing and Audience Engagement and remain committed to simplifying our business and focusing on these core capabilities, while also improving our balance sheet and driving shareholder value.”
Nick Gawne, WildBrain CFO, added: “As a result of the slower than anticipated normalization of the content production market and the subsequent impact on our studio business, we have adjusted our Fiscal Year 2024 outlook. We now expect revenue to be down approximately 8% to 12% year over year and expect Adjusted EBITDA to be down approximately 5% to 10% year over year. The adjustment in our outlook is driven by the ongoing reduction in production in our content studios, but we are confident in our content production outlook for Fiscal Year 2025 and 2026, with over 60% and 50% of our pipeline greenlit, respectively. This level of pipeline visibility reflects a return to normal operational levels of our studio and is a positive indicator for our business going forward. We continue to make progress on our key financial goals of addressing our 2024 convertible debentures and reducing our leverage, including through the potential sale of non-core assets.”
Q2 2024 Performance – Executing on Priorities
PRIORITIES
HIGHLIGHTS
Focus on Key Brands & Partnerships
The second of four seasonal CG-animated Strawberry Shortcake specials premiered on Netflix in December for the holiday season and we announced multiple new licensing partnerships, including new apparel and toy lines; a Crisco baking promotion; kids’ podcasts; and location-based character appearances for fans.
A third season of our hit series, Sonic Prime, produced in partnership with SEGA, debuted on Netflix on January 11. As with seasons one and two, the series premiered in the top-ten on the platform, globally.
Subsequent to the quarter, our sixth new Peanuts family special, Welcome Home, Franklin, was announced for premiere on Apple TV+ on February 16, following the announcement in November of the greenlight of a new Peanuts feature film by Apple TV+.
Season 2 of popular animated preschool series Brave Bunnies, was launched with a wave of international distribution deals for both Seasons 1 and 2, including with leading platforms Milkshake! (UK), Rai Yoyo (Italy) and TeleTOON+ (Poland), CNC Media International (South Korea) and Stan (Australia), adding to the list of platforms in more than 80 countries airing the series.
Deliver Sustainable Growth
Impacted by the challenges in the content production market, we now expect revenue to be down approximately 8% to 12% year over year and expect Adjusted EBITDA to be down approximately 5% to 10% year over year in Fiscal Year 2024.
Looking ahead, we are confident in our content production outlook for Fiscal Year 2025 and 2026, with over 60% and 50% of our pipeline greenlit, respectively.
Improve Balance Sheet
Committed to financial discipline, reducing leverage and consistent free cash flow generation. Target leverage of under 4x by the end of Fiscal Year 2024.
Q2 2024 Financial Highlights
Financial Highlights
(in millions of Cdn$)
Three Months ended
December 31,
2023
2022
Revenue
$126.3
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