HALIFAX — Kids and family entertainment company WildBrain yesterday reported financial results for its fourth quarter and full-year fiscal 2021, which saw the company enjoy revenue growth but experience an overall net loss for the year ended June 30, 2021.
For the fourth quarter of 2021, WildBrain’s revenue increased 21% to $112.6 million compared to Q4 2020. Its full-year revenue grew 6% from fiscal 2020 to $452.5 million.
WildBrain said in a press release its Q4 revenue growth was “driven by the deal with Apple TV+ for the Yo Gabba Gabba! library, ongoing recovery in Spark and the strength of our Consumer Products business.”
The company’s Q4 2021 net income totalled $11.4 million, an increase from the $4 million net income it reported in Q4 2020. However, it reported a net loss of $7.1 million for fiscal 2021, which is an improvement over the net loss of $236 million it experienced in its fiscal 2020 year.
WildBrain’s adjusted EBITDA in Q4 2021 increased 3% to $19.2 million, compared to Q4 2020. Its fiscal 2021 adjusted EBITDA increased to $83.1 million, up from $81.8 million in fiscal 2020.
“Fiscal 2021 was a turning point for WildBrain. We’re seeing returns from our focus on creativity, digital media and IP and activating some of our key brands, which will further fuel our cash flow while driving consumer products upside,” said WildBrain CEO Eric Ellenbogen, in the press release.
“Among these activities are our Sonic Prime partnership with SEGA and Netflix, holistic agreements with the emoji company and Moose Toys on new IP, and our expanded Peanuts partnership with Apple TV+.”
Ellenbogen also made reference to WildBrain’s recent deal with Apple TV+ for the Yo Gabba Gabba! library and its relaunch of Strawberry Shortcake with a new animated series.
“Overall, we expect growth to accelerate as we move through Fiscal 2022 and beyond as these new deals and franchises play out in our numbers. We’re investing our increased revenues in new content for WildBrain Spark to drive audience engagement and also in marketing to drive our brands. We’re just beginning to switch on the IP in our vault and to leverage WildBrain’s unique, 360-degree capabilities in content, distribution, audience delivery and licensing to maximize the profitability of our assets.”
As with recent quarters, WildBrain emphasized the performance of its consumer products segment and WildBrain Spark AVOD business when reporting its year-end financial results in its press release. Its management discussion and analysis (MD&A) document filed with Sedar provides some financial information about WildBrain’s broadcasting business, which includes Family Channel, Family Jr, Télémagino and Family CHRGD.
The company’s Canadian television broadcasting revenue decreased 11% to $12.1 million in Q4 2021, compared to $13.5 million in Q4 2020, “which was largely due to a $2.0 million equity recoupment earned in Q4 2020 arising from an investment made in a new series for our Family Channel,” reads the MD&A.
For full-year fiscal 2021, WildBrain’s TV broadcasting revenue decreased 6% to $46.5 million, compared to fiscal 2020, “reflecting subscriber erosion in line with the broader linear TV market and included $2.0 million equity recoupment earned in Q4 2020,” the MD&A says. “Subscriber revenue as a percentage of total revenue was at 88%, or $41.0 million (Fiscal 2020 – 85%, or $42.0 million), while advertising, promotion, digital and other revenues were 12%, or $5.5 million (Fiscal 2020 – 15%, or $7.6 million).”
WildBrain’s content production and distribution revenue increased 12% to $44.6 million in the fourth quarter of 2021, compared to Q4 2020.
Content production and distribution revenue for fiscal 2021 grew 27% to $185.1 million, from fiscal 2020, “which reflected a growing roster of premium productions that also drove associated library deals,” the release says.
The company’s AVOD business, WildBrain Spark, saw a revenue increase of 81% to $11.7 million in Q4 2021, compared to Q4 2020, which the company said reflected ongoing recovery in advertising revenue. WildBrain Spark’s fiscal 2021 revenue decreased to $45.8 million from $62.3 million in fiscal 2020 “due to the impacts of COVID-19 as well as YouTube’s policy changes on advertising on kids and family content made in early January 2020,” the release says.
“We expect Spark to return to growth in Fiscal 2022 as advertising rates continue to improve and we drive growth in monetizing the significant audience on our AVOD network. While there will be seasonality across the year, Q1 2022 revenue is forecast to increase at least 60%, compared with the same prior year quarter.”
WildBrain’s consumer products revenue increased 33% to $44.2 million in Q4 2021, compared to Q4 2020. “Higher revenue in Q4 2021 was due to the strength of the Peanuts brand, complemented by the quality and reach of the new content we are bringing to market starting with the first series, Snoopy in Space, that debuted in November 2019. We are in the early stages of a prolific rollout of new Peanuts content over the coming years, which is expected to drive consumer products globally,” the release says.
For fiscal 2021, consumer products revenue increased to $175.2 million from $168.6 million in fiscal 2020, “reflecting the enduring vitality of the Peanuts franchise as well as increased commissions and growth in new business from our licensing agency WildBrain CPLG.”
For more on WildBrain’s Q4 and fiscal 2021 financial results, please click here.
