Company posts 24% revenue gain for Q2
MONTREAL — Nelvana posted significant gains in both net earnings and revenue for the second quarter, the Toronto-based production company announced Thursday.
Earnings increased 53% to C$1.28 million ($840,000) or C$0.18 ($0.12) per share, up from C$830,000 ($550,000) or C$0.15 ($0.10) per share for the same period a year earlier. The average number of shares outstanding increased 23% since last year.
Revenue for the quarter increased 24% to $6 million, compared to $5 million a year earlier. During the second quarter, co-productions accounted for 61% of the episodes delivered, compared to 27% the year before. The increased number of co-productions allowed Nelvana to deliver 28 proprietary episodes during the quarter, up from 22 last year, but it also resulted in lower revenue per episode for the company.
Shows delivered during the quarter included three episodes of the fourth season of “Little Bear,” seven episodes of the second series of “Franklin,” six “Blazing Dragons” installments, two “Sam & Max” episodes, six episodes of “Stickin’ Around,” and four episodes of “Bob & Margaret,” which airs on Comedy Central in the U.S. and is set to make its Canadian primetime bow this fall on Global Television. The Canadian family-fare producer and distributor is on track to deliver at least 170 proprie-tary episodes and one feature film this year, a 46% increase over last year.
“We are extremely pleased by our continued earnings momentum and the progress we made on several fronts in the first half of the year,” said Michael Hirsh, co-CEO of Nelvana. “During the period, we successfully completed the construction and set-up of our new 3D CGI facility and received tremendous initial response from Disney and CBC on ‘Rolie Polie Olie,’ our first 3D production.”
Revenue from merchandising activities in the second quarter increased 14% to $530,000, compared to revenue of $460,000 during the first quarter of last year.