4Kids' losses steady despite big revenue dip
By Staff -- Playthings, 11/9/2009 9:39:00 AM
NEW YORK—4Kids Entertainment saw its revenue plummet 59 percent in 2009’s third quarter on its way to a $5 million loss for the period.
Net revenues for the three months ended Sept. 30, totaled $7.3 million, down from $17.8 million for the same period in 2008. The company’s net loss attributable to 4Kids Entertainment for the quarter was $5.0 million, or $0.37 per diluted share, as compared to a net loss of $5.3 million, or $0.40 per diluted share, for the same period in 2008.
“Business conditions remained challenging for the company during the third quarter as reflected in our results,” said Alfred R. Kahn, 4Kids’ chairman and CEO. “However, we closed on two deals over the last six weeks which we believe are big positives for 4Kids. The sale of the Teenage Mutant Ninja Turtles property to Nickelodeon not only compensated 4Kids for the early termination of its representation agreement but also provided the company with a substantial infusion of cash. Our NFL trading card game license also provides the company with an opportunity to use our online platform for a new trading card game.”
The “substantial infusion of cash” from the sale of the TNMT property to Nickelodeon was $9.8 million.
For the nine months ended September 30, 2009, net revenues totaled $21.9 million, compared to $49.4 million for the same period in 2008. The company’s net loss attributable to 4Kids Entertainment for the nine months ended on Sept. 30 was $20.8 million, or $1.56 per diluted share, as compared to a net loss of $17.2 million, or $1.31 per diluted share, for the same period in 2008.
"We are encouraged by the increase in our television ratings thus far for the 2009-2010 broadcast season, compared with the same period during the 2008-2009 broadcast season. We are hopeful that sales of toys and games and licensed merchandise in the coming holiday season will be stronger than last year’s sales numbers and that the company’s fourth quarter licensing revenue will likewise benefit," concluded Kahn.
On Nov. 17, a Chaotic video game will be released for all of the major game console systems.
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