TORONTO — Nelvana Ltd., Canada’s biggest animation production company, has reported sharply lower revenue and profit in the traditionally weak first quarter.
Toronto-based Nelvana said Tuesday that profit for the three months ended March 31 fell to C$44,000 ($31,790), compared with C$1.3 million ($967,427) a year earlier. Revenue dropped to $5.7 million from $10.4 million.
The company said revenue from delivery of two episodes each of “Rupert” and “Little Bear” was not recognized in the first quarter under its accounting policy. Last year, revenue for the delivery of the series “Little Bear” and “The Neverending Story” was recognized in the first quarter. Nelvana also wrote off about $722,500 from the value of live-action series in its program library.
Nelvana said it expects to deliver at least 117 proprietary episodes and 18 animated service episodes this year.