Says it is looking for strategic partnerships for Canadian TV channel
VANCOUVER – Kids and youth entertainment company Wow! Unlimited reported second quarter revenue of $26.6 million for the period ended June 30, 2019, up 63% over Q2 2018.
However, net loss was $2.4 million in the quarter, as compared to a loss of $2.1 million in the same quarter a year ago. The net loss in the first half was $5.7 million, as compared to a loss of $2.2 million a year ago.
Based in Vancouver and helmed by Nelvana founder Michael Hirsch, Wow’s key assets include digital animation network Frederator Networks, which consists of an animation production company Frederator Studios, as well as VOD channels on digital platforms such as YouTube, plus animation production studios Mainframe Studios.
The company also noted in the Q2 release that it will take ownership of Bell Media’s Comedy Gold as of Friday, August 30th. It acquired the channel in 2018 for $6.87 million. Bell is a minority partner in Wow, too. While the company had originally stated it wanted to launch a new kids focused channel, it’s not clear at this time what Wow intends to do with it.
“Management is exploring strategic partnerships to structure a financially attractive business plan for a potential WOW!-branded linear channel,” reads the company’s Wednesday afternoon Q2 press release.
As for the rest of the results, the company’s animation production backlog was $71.9 million and animation production segment revenue was $6.9 million in Q2, “bolstered by the continued production of the Costume Quest Christmas Special, Barbie Dreamhouse Adventures, season 2, Made by Maddie, the Octonauts specials, and Octonauts, season 5,” says the release.
Also noteworthy is that on June 8, 2019, the company announced a key channel affiliate, ADME, “would repatriate certain of its YouTube channels from Frederator; Frederator would continue to distribute and manage certain other ADME channels and it will have the opportunity to distribute and manage certain new ADME YouTube channels as they are developed,” reads the release.
“As of June 30, 2019, ADME channels represented approximately 85% of overall viewership on the Channel Frederator Network. Pursuant to the agreement, on July 31, 2019, Frederator transferred to ADME channels representing approximately 40% of the viewership of the ADME owned channels. While the ADME-owned channels contribute a significant portion of the Networks and Platforms revenues, they do not represent a significant portion of the Company’s overall profitability. Further, given the nature of their content i.e. crafts and hobbies, the loss of ADME channels do not affect the Company's core objectives on YouTube – those of finding great animation talent and IP, and using the platform to build audiences for its animated shorts and series.”
Frederator Network had 3,129 channels as at June 30, 2019.
