Genius Brands International, Inc. a global brand management company that creates, produces, broadcasts, and licenses entertainment content for children, reported financial results and provided a business update for the first quarter ended 31 March 2022.The Company has now achieved 10 consecutive quarters of year-over-year revenue growth. Revenues increased 35 percent in the first quarter of 2022, compared to the same period last year.
On 6 April 2022, the company completed its planned acquisition of WOW! Unlimited Media (WOW!), the Canadian animation sub-contract producer of animated programming including Coco Melon, Barbie’s Dream House, and Madagascar, a Little Wild, as well as operator of the Frederator Channel. The Frederator Channel is You Tube’s largest animation-focused Multi Channel Network with over one billion views per month.
As a result of the acquisition closing on 7 April 2022, WOW!’s results were not included in the Company’s first quarter 2022 results. Revenues for the combined companies on a pro forma basis, increased 53 per cent to $19.4 million in the first quarter of 2022, compared to $12.7 million for the same period last year. On a standalone basis, WOW! achieved approximately $1 million of net income and approximately $2 million of EBITDA for the first quarter of 2022.
Having completed the WOW! acquisition, the Company is now focused on maximizing operating synergies and expects to benefit from significant economies of scale to drive profitability. Meanwhile, the Company has maintained a solid balance sheet with a substantial cash position to internally fund growth.
The Company also recorded a $5.4 million gain during the quarter on its investment in Your Family Entertainment (YFE), the German children’s media and broadcast company. The Company is integrating YFE with Kartoon Channel! to expand the combined content offering under the Kartoon Channel! Worldwide brand.
During the first quarter of 2022, the Company additionally:
- Launched Kartoon Channel! onto The Roku Channel, reaching an estimated 80 million people in the US alone. Kartoon Channel! is now carried on most major platforms
- Expanded the global footprint of Kartoon Channel! Worldwide across Latin America, the Middle East & North Africa, which is now available in over 67 countries
- Began the initial rollout of the Company’s commercial free SVOD service Kartoon Channel! Kidaverse following the acquisition of Canadian SVOD streamer Ameba TV
- Increased viewership for Stan Lee’s Superhero Kindergarten, which launched in China with Alibaba on their kids Youku platform.
The Company is executing on its strategy to establish Genius Brands as the foremost producer, broadcaster, and licensor of high-quality children’s entertainment and children’s consumer products. Unlike Disney+ and Netflix, both of which have historically been pure subscription services Genius maintains and is building both ad supported and subscription supported services.
Additionally, both Kartoon Channel! and Kartoon Channel! Kidaverse are available through one app, which offers both Video-on-Demand and linear fast programmed products, with a continuously growing viewer and subscriber base. Kartoon Channel! continues to be the top user rated streaming service in its class in the Apple app store.