NEW YORK — Harvey Entertainment Co. lost $183,000 in the first quarter, compared to a profit of $473,000 a year earlier, reflecting a dip in revenues and higher costs related to the creation of new licensing and character development departments.
Harvey recently won back the right from Universal Studios Inc. to control licensing and merchandising of its characters, which include “Casper” and “Richie Rich.” It is setting up a consumer products department to deal with that. Partly as a result, administrative expenses almost doubled in the first quarter to $1.38 million.
“We believe that controlling these important avenues of exploitation will lead to increased revenues and exposure for all the Harvey characters,” Harvey chairman Jeff Montgomery said in a statement.
Harvey’s revenues fell 21% in the quarter to $1.78 million.