Nelvana strategy hits gold

Cartoon co nets $3.4 mil in earnings for '97, up 34% for fiscal '96

TORONTO — If Nelvana’s fourth-quarter and year-end results are anything to go by, the animation company’s strategic shift to increased inhouse animation and away from third-party service work appears to be paying off.

Net earnings for the year ended Dec. 31 were C$4.9 million ($3.4 million, 61¢ per share), a 34% increase from the $2.61 million (50¢ per share) in fiscal 1996.

The net profit margin increased to 9%, compared with 6% in ’96. There was a 9% reduction in total revenue to $39.6 million, compared with $43.8 million for 1996.

For the fourth quarter, net earnings were $2.26 million (39¢ per share), up 22% from $1.84 million (35¢) for the fourth quarter of 1996. Total revenue decreased 7% to $16.5 million from $17.7 million in the prior year. The decrease reflects an 82% decline in production services revenue and was partially offset by an 87% increase in production and distribution revenue.

The company announced its decision to focus exclusively on proprietary production in April, and for the year, proprietary production deliveries were up 68%, to 116 half hour episodes, while service deliveries dropped to 18, down sharply from 69 in 1996.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety