Genius Brands International, Inc. (“Genius Brands”) (NASDAQ: GNUS),
a global brand management company that creates, produces,
broadcasts, and licenses entertainment content for children, today
provided a business update and filed its 10Q financial report for
the third quarter ended September 30, 2022.
The company achieved significant top line revenue growth in the
3rd quarter of 2022, as well as a substantial reduction in
operating expenses as a percentage of revenue, as a result of
synergies and efficiencies from the acquisitions of WOW Unlimited
Media Inc. (“WOW”), Ameba channel, and the investment in the German
children’s media giant, YFE. Specifically, revenue for the third
quarter of 2022 increased by 951% to $19.7 million, compared to
$1.9 million for the same quarter last year. Results continue to be
positively impacted by the WOW acquisition completed earlier this
year, which delivered in-house animation production capabilities
through WOW’s Mainframe Studios, while expanding Genius Brands’
distribution platform through WOW’s Frederator Network, generating
1 billion views per month, and over 2,500 advertiser supported
channels, making it the largest animation-focused multi-channel
network on YouTube. In addition to Shaq’s
Garage/Baby Shaq, already in production
through independent partners, Mainframe Studios adds new in house
production capacity with seven series in production for Netflix,
YouTube Kids and elsewhere. The company also expects increasing
benefit from the significant synergies, efficiencies and economies
of scale of the combined organizations.
Mainframe Studios is progressing with production on the largest
production commitment in its history, a 4-year, $39 million
contract, initiated last year to produce an animated series for a
leading subscription video-on-demand (SVOD) network and a global
consumer products company, which is expected to be announced in the
first half of 2023. The company also continues to advance on a
number of other global collaborations which it believes will
support further revenue growth and profitability in 2023, with
production services on hit titles including CocoMelon (shorts),
Barbie: It Takes Two, Octonauts: Above & Beyond (recently
nominated for two Children’s and Family Emmys), as well as original
IP titles including DreamWorks Team Zenko Go, The Guava Juice Show
and Frederator Studios’ Bee and PuppyCat.
Concurrently, Kartoon Channel! has continued to grow both
domestically in the United States and around the world in the 3rd
quarter, growing both its content catalog and its global
distribution footprint. The app saw 124% growth in monthly unique
viewers from Q2 to Q3. Kartoon Channel! expects to continue
steadily adding both new ad-supported and subscription viewers,
under a disciplined and profit-driven model, fueled by its brand
positioning of being a safe viewing platform for children. In
addition, Kartoon Channel! extended its Spafax Inflight
Entertainment partnership, already available on Jet Blue, adding
British Airways and Qatar Airways, among others. Internationally
during the 3rd quarter, Kartoon Channel! Worldwide has added its
program service in Germany, Australia, New Zealand and the
Philippines.
Looking ahead, the Company expects to turn cash flow positive in
2023. To that end, Genius Board of Directors member, Tony
Thomopoulos, former President of ABC Broadcasting, United Artists
Pictures, and Steven Spielberg’s Amblin Television, was recently
assigned operational oversite of profitability for each of the
company’s business units.
The company remains highly encouraged by the outlook for its
upcoming production and consumer products programs Shaq’s
Garage/Baby Shaq, and its recently announced series, Wolfgang
Puck’s Secret Chef Academy. The company signed a 20-year deal with
Disney and Marvel in June to license Stan Lee’s likeness in
upcoming entertainment, and looks forward to announcing meaningful
updates on the Stan Lee Universe brand leading up to his 100th
birthday on December 28th.
The assets in house, as well as those being developed, are
expected to contribute to long-term revenue growth, as the Company
advances towards its goal of positive cash flow and sustainable,
growing profitability in 2023 and beyond.
As of September 30, 2022, Genius Brands had current assets of
$143.6 million, working capital of $32.4 million, and total
stockholders’ equity of $128.5 million. The Company believes it is
well funded, and has significant capital for the foreseeable
future, to support its goal of turning cash flow positive in
2023.
Complete financial results are available in the Company’s Form
10-Q, which has been filed with the Securities and Exchange
Commission, and is available on the Company’s website:
https://ir.gnusbrands.com/sec-filings
About Genius Brands InternationalGenius Brands
International, Inc. (Nasdaq: GNUS) is a leading global kids media
company developing, producing, marketing, and licensing branded
children’s entertainment properties and consumer products for media
and retail distribution. The Company’s IP portfolio of
family-friendly content features the Stan
Lee brand, Stan Lee’s Superhero Kindergarten, starring
Arnold Schwarzenegger, on Kartoon Channel!; Shaq’s Garage,
starring Shaquille O’Neal, coming to Kartoon Channel!; Rainbow
Rangers on Kartoon Channel! and Netflix; Llama Llama,
starring Jennifer Garner, on Netflix and more. Genius Brands also
acquired Canada’s WOW! Unlimited Media (TSX-V: WOW), which includes
2,500 channels under the Channel Federator Network, and has also
made a strategic investment in Germany’s Your Family Entertainment
AG (FRA:RTV), one of Europe’s largest distributors and broadcasters
of high-quality programs for children and families.
Genius Brands’ Kartoon Channel! is a globally
distributed entertainment platform with 100% penetration in the
U.S. television market and international expansion with launches in
key markets around the world. The channel is available in the U.S.
via a broad range of distribution platforms, including Comcast,
Cox, DISH, Amazon Prime, Amazon Fire, Apple
TV, Apple iOS, Android TV, Android Mobil, Google
Play, Roku, YouTube, KartoonChannel.com, Samsung Smart and LG
TVs, the JetBlue Inflight platform and more. Genius Brands is now
rolling out the subscription based Kartoon Channel! Kidaverse,
featuring metaversal content and exclusive titles.
For additional information, please
visit www.gnusbrands.com.
Forward Looking Statements: Certain statements
in this press release constitute "forward-looking statements"
within the meaning of the federal securities laws. Words such as
"may," "might," "will," "should," "believe," "expect,"
"anticipate," "estimate," "continue," "predict," "forecast,"
"project," "plan," "intend" or similar expressions, or statements
regarding intent, belief, or current expectations, are
forward-looking statements. While the Company believes these
forward-looking statements are reasonable, undue reliance should
not be placed on any such forward-looking statements, which are
based on information available to us on the date of this release.
These forward looking statements are based upon current estimates
and assumptions and are subject to various risks and uncertainties,
including without limitation, our ability to generate revenue or
achieve profitability; our ability to obtain additional financing
on acceptable terms, if at all; the potential issuance of a
significant number of shares, which will dilute our equity holders;
fluctuations in the results of our operations from period to
period; general economic and financial conditions; our ability to
anticipate changes in popular culture, media and movies, fashion
and technology; competitive pressure from other distributors of
content and within the retail market; our reliance on and
relationships with third-party production and animation studios;
our ability to market and advertise our products; our reliance on
third-parties to promote our products; our ability to keep pace
with technological advances; our ability to protect our
intellectual property and those other risk factors set forth in the
“Risk Factors” section of the Company’s most recent Annual Report
on Form 10-K and in the Company's subsequent filings with the
Securities and Exchange Commission (the "SEC"). Thus, actual
results could be materially different. The Company expressly
disclaims any obligation to update or alter statements whether as a
result of new information, future events or otherwise, except as
required by law.
MEDIA CONTACT :
pr@gnusbrands.com
INVESTOR RELATIONS
CONTACT:ir@gnusbrands.com
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