×
You will be redirected back to your article in seconds

Publishing buy cuts Nelvana profits

Revs up to $17.5 mil, prod'n co. eyeing Cinar

TORONTO — Kids’ TV production house Nelvana reported a huge drop in its second quarter earnings Friday, which analysts say is the short-term cost of its latest book publishing acquisition.

Earnings for the second quarter ended June 30 were C$100,000 ($68,000), down from $952,000 for the second quarter of 1999. Nelvana attributed the drop, in part, to the cost of financing its $74 million April purchase of U.S. kids’ book publisher Klutz.

“Ultimately, as the company benefits from a higher revenue base, we’re going to see a material increase in performance,” predicted entertainment analyst Adam Shine of CIBC World Markets in Montreal, who categorized the company’s performance in the quarter as solid, despite the drop in earnings.

Nelvana’s revenues for the quarter were up sharply, at $17.5 million, almost double the year-earlier result. Company benefited from the inclusion of six weeks of Klutz’s revenues, as well as revenues per episode nearly double those of a year ago and ongoing increases in merchandising revenues, Shine noted.

Eyeing Cinar

Nelvana execs are among those with an eye on the assets of embattled Montreal-based animation company Cinar Corp. While Nelvana lacks the muscle of rumored competitors Disney, Nickelodeon (whose parent company is Viacom), AOL Time Warner, or even CanWest Global or Alliance Atlantis, Shine notes that the fit with Nelvana would be very strong, once outstanding legal and fiscal issues are settled.

More Biz

  • Louis Tomlinson Signs With Arista (EXCLUSIVE)

    Louis Tomlinson Signs With Arista (EXCLUSIVE)

    One Direction’s Louis Tomlinson has signed with Arista, sources tell Variety. While the singer was formerly linked with Epic Records in 2017, he is signed directly to Simon Cowell’s Syco label and will move within the Sony Music family to Arista. Tomlinson teased a new single on Feb. 2, posting on Twitter, “Just heard the [...]

  • Jussie Smollett

    Jussie Smollett's Bail Set at $100,000, Must Surrender Passport

    UPDATED: A Chicago judge set a $100,000 bond for Jussie Smollett on Thursday, as the “Empire” actor made his first court appearance. Smollett faces one felony count of filing a false police report. Police allege that Smollett staged a Jan. 29 attack, telling detectives that he was accosted by two men who used racial and [...]

  • Michael Jackson Estate Accuses HBO of

    Michael Jackson Estate Sues HBO for Non-Disparagement Contract Breach

    The estate of Michael Jackson sued HBO on Thursday, accusing the cable channel of violating a non-disparagement clause by agreeing to run “Leaving Neverland,” a documentary accusing Jackson of sexual abuse. The suit seeks to compel HBO to litigate the matter in a public arbitration process, and claims that the estate could be awarded $100 [...]

  • Allison Kaye

    Scooter Braun Names Allison Kaye Partner at Ithaca Holdings (EXCLUSIVE)

    On the back of a history-making debut by Ariana Grande, who claims the top three songs on the Billboard Hot 100 chart this week (tying the Beatles), Scooter Braun has appointed his longtime deputy Allison Kaye to partner at Ithaca Holdings LLC, which houses SB Projects. She was previously president of music at the 12-year-old [...]

  • Tidal Launches $1 Million Program to

    Tidal Launches Unplugged, $1 Million Program to Support Emerging Musicians

    Tidal, the streaming platform headed by Jay-Z, today announced the launch of a million-dollar artist grant program intended to support emerging musicians. Called Tidal Unplugged and funded by a donation from venture capitalists and philanthropists Mark Lampert and Robert Nelsen, the program will kick off March 1 in Detroit, where Lampert’s grandfather started his musical career. [...]

  • Patti Smith, Sharon Van Etten Lead

    Patti Smith, Sharon Van Etten, Lead Initial Lineup for Renovated Webster Hall

    New York’s classic venue Webster Hall, which will reopen this spring after a months-long renovation, has announced the first run of shows after its relaunch: Patti Smith and Her Band, Broken Social Scene, MGMT, Empire of the Sun, Old Dominion, Sharon Van Etten, Built to Spill, Real Estate, Chromeo and Big Thief are among the [...]

More From Our Brands

Access exclusive content