VANCOUVER — On the same day it reported its second quarter 2020 financial results, Wow! Unlimited Media announced Thursday its Frederator Networks subsidiary is undergoing a leadership reorganization.
Frederator founder and CEO Fred Seibert is leaving Wow to return to independent production. Wow’s CEO, Michael Hirsh, will take over as CEO of Frederator, which includes Channel Frederator Network and the Frederator Studios animation production company. Wow’s COO, Neil Chakravarti, will become COO of Frederator. These leadership changes take effect immediately.
Seibert will continue to work with the company on current and future projects as an independent producer, staying involved as an executive producer on current Frederator projects Castlevania and Bee & PuppyCat to ensure a successful transition, says the news release announcing the leadership changes.
“I’m happy to have brought Frederator into the Wow! family where I know it will continue to grow and thrive. I am looking forward to returning to my roots as an independent cartoon producer who’s constantly searching — and finding! — unique talents with original voices,” said Seibert in the release.
“As we look to the future, we will continue to provide fans with beloved Frederator franchises, alongside new and exciting content from the over 3,000-strong Channel Frederator Network,” added Hirsh.
In a separate news release, Wow reported its revenue dropped by almost 57% to $11.5 million in the second quarter of 2020, compared to the $26.6 million in revenue it reported in the same quarter of 2019. The company’s consolidated revenue for Q2 2020 included $4.2 million generated by Wow’s networks and platforms segment and $7.3 million by its animation production segment. Revenues in the quarter were bolstered by the continued production of the 70-minute animated film Barbie Princess Adventure (expected to start streaming on Netflix on September 1), an additional 60-minute animated Barbie film, the Made by Maddie series, a new Madagascar: A Little Wild animated series, plus the Octonauts specials and Octonauts seasons five through eight, says the release.
Wow’s operating EBITDA was a loss of $664,000 in the second quarter of 2020, compared to an operating EBITDA loss of $625,000 in the second quarter of 2019. The company’s net loss for Q2 2020 was $3.4 million, compared in a $2.4 million net loss in Q2 2019.
The company says its production pipeline continues to be strong, with more than 200 half-hours of episodic animation and seven animated movie specials currently in production or contracted and scheduled. As of June 30, 2020, Wow’s animation production backlog was $64.3 million.
“The Covid-19 crisis continues to pose challenges for businesses and individuals alike and Wow! is adapting its business model to face the future. During the quarter, Wow! took steps to restructure and rationalize its Frederator operations in New York, as a result of which we anticipate EBITDA savings of over $2.0 million on an annualized basis,” added Hirsh.
