DHX Media Ltd. (doing business as WildBrain), which is headquartered in Halifax, reported a first quarter net loss of $16 million (12 cents per share) on revenue of $112.3 million in the first quarter of fiscal 2019-20, which ended on Sept. 30.
During the same quarter in fiscal 2018-19 DHX reported a net loss of $2.4 million (two cents per share) on revenue of $104 million.
This year’s first quarter net loss was affected by one-time reorganization charges and a non-cash foreign exchange loss, according to management.
Cash flow from operations increased to $18.7 million in the quarter compared to negative cash flow of $10 million in the first quarter last year. Management said $7.6 million was paid down on its term loan in the first quarter of fiscal 2019-20 from excess cash flow.
Adjusted earnings before, interest, taxes, depreciation and amortization increased to $19.6 million compared to $17.3 million in the same quarter last year 2019.
On Sept. 23 DHX Media announced its intention to change its corporate name to WildBrain, and to rebrand its ad-based video-on-demand business, previously called WildBrain, to WildBrain Spark.
The corporate name change is subject to shareholder approval at the company’s next annual meeting, the company is reporting as DHX Media and refers to its ad-based video-on-demand business as WildBrain in its first quarter financial statements.
Streaming platform WildBrain Spark’s views grew 66 per cent to more than 12 billion in the first quarter. WildBrain Spark’s revenue increased 37 per cent to $22.1 million versus $16.2 million in the same quarter last year.
After the end of the first quarter, DHX announced a $60 million rights offering of which $50 million will be used to reduce the term loan and the remaining balance will be used for working capital, according the company.
DHX Media (WildBrain) describes itself as a global kids' and family content and brands company. The company’s new CEO Eric Ellenbogen said in a statement. “In the six months since taking on my advisory position and two months now as CEO, I've become more energized and enthused about the untapped opportunities across our portfolio of assets. It will take time and investment to fully unlock this value, but I couldn't be more optimistic about our future."
In the first quarter, distribution revenue (excluding WildBrain Spark) rose 78 per cent to $15.6 million compared with $8.8 million a year ago, driven by a large library deal with CBS All Access, which the DHX described as a “major new entrant in the streaming space, demonstrating the variability in revenue by quarter depending on timing of deals.”
DHX (WildBrain) maintains a library of more than 13,000 half-hours of filmed entertainment. It is home to such brands as Peanuts, Teletubbies, Strawberry Shortcake, Caillou, Inspector Gadget and Degrassi.
The company states that its shows are seen in more than 150 countries on more than 500 telecasters and streaming platforms. WildBrain Spark is one of the largest networks of kids' channels on YouTube, with more than 109 million subscribers.
