The following is a summary of the WildBrain Ltd. (WLDBF) Q3 2024 Earnings Call Transcript:
Financial Performance:
WildBrain reported Q3 consolidated revenue of $100 million, a 29% decrease, primarily due to reduced output in studio business.
Gross margins increased by over 250 basis points as global licensing and audience engagement became a higher proportion of total revenues.
The company demonstrated a net loss of $15 million, mainly due to lower gross margin dollars and a reduction in the change of fair value and embedded derivatives.
Free cash flow for the quarter was negative $3 million, showing an improvement from the previous year's negative free cash flow of $5 million.
Business Progress:
The company has several projects greenlit for fiscal 2025 and 2026, with a significant increase in hiring for its Vancouver studio.
A global premiere of the new series Yo Gabba GabbaLand! is expected in Q3 2024.
YouTube networks watched over 60 billion minutes of videos in Q3, up 30% from last year.
The progress into Fast and non-YouTube AVOD channels across various platforms has demonstrated consistent growth.
The content library saw a growth of over 85 channels and increased U.S. viewership from 300 million minutes in 2019 to over 5.5 billion minutes in 2023.
The company plans to seed the licensing market for its Gabba brand and sees significant potential in the China market for Teletubbies.
The company revealed plans to reduce leverage, simplify company structure and address the convertible on a timely basis.
More details: WildBrain Ltd. IR
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