Genius Brands Announces 885% Increase in Revenue for Q1 2023
Kartoon Channel!’s “SHAQ’S GARAGE” Set to Premier
June 5 Exclusively on Pluto TV
Company’s Kartoon Channel! and Ameba Services
Report Significant SVOD Streaming Growth
Strategic Initiative to Streamline Operations
Resulting in a Material Reduction in Annualized Expenses
Reports $114.3 Million in Current Assets, Working Capital of $23.5
Million and Total Stockholders’ Equity of $91.3 Million
BEVERLY HILLS, Calif., May 22, 2023 (GLOBE NEWSWIRE) -- Genius Brands International, Inc. (“Genius Brands”) (NASDAQ: GNUS), a global brand management company that creates and licenses multimedia entertainment content for children, today provided a business update for the three months ended March 31, 2023 (“Q1 2023”).
Q1 2023 revenue increased 885% to $14.2 million, compared to $1.4 million for the same period last year. The Company also announced it has begun implementing a comprehensive cost cutting plan, aimed at streamlining operations and continuing the path to profitability. Expense reductions include personnel costs, production spend, lease, and vendor expenses As of March 31, 2023, Genius Brands had current assets of $114.3 million, working capital of $23.5 million, and total stockholders’ equity of $91.3 million.
The Company reports that Kartoon Channel!’s Shaq’s Garage, starring and executive produced by the legendary Shaquille O’Neal, will premiere June 5th on Pluto TV, the leading free streaming television service. The debut will include 26 original 11-minute episodes that will be supported by a variety of companion content, influencer collaborations and a comprehensive social marketing campaign. Additionally, Genius Brands is developing a full-scale consumer products retail program for “Shaq’s Garage.”
Unlike many streaming companies reporting declining subscriptions, Genius Networks’ subscription base has increased 6% since the 4th quarter of 2022 and subscriber watch time is up 15% for the same period. Total trial conversions increased 13% from the end of last year. Genius Networks has also developed a customer acquisition framework by identifying optimal subscription platforms and utilizing data driven, agile media execution that reduced customer acquisition costs by more than 75% since 2022. The year-over-year efficiencies in customer acquisition provide the ability to significantly reduce overall marketing and advertising budgets while growing subscribers and revenue.
The flagpole STAN LEE and STAN LEE CENTENNIAL will kick-off with a documentary on the life of Stan Lee, premiering the opening weekend of the Tribeca Film Festival June 10th, and to be subsequently released on Disney+ June 16th. The Company will also roll out a comprehensive licensing program for Bee and Puppycat, the lead property in the Company’s partnership with Toho Studios of Japan, prior to the Licensing Expo in Las Vegas June 13 - 15.
About Genius Brands International
Genius Brands International, Inc. (Nasdaq: GNUS) is a leading global kids media company developing, producing, marketing and licensing branded children’s entertainment properties and consumer products for media and retail distribution. The Company’s IP portfolio of family-friendly content features the Stan Lee brand, Stan Lee’s Superhero Kindergarten, starring Arnold Schwarzenegger, on Kartoon Channel!; Shaq’s Garage, starring Shaquille O’Neal, coming to Pluto TV; Rainbow Rangers on Kartoon Channel! and Netflix; Llama Llama, starring Jennifer Garner, on Netflix and more. In 2022, Genius Brands acquired Canada’s WOW! Unlimited Media (TSX-V: WOW), which includes 2,500 channels under the Channel Frederator Network, and also made a strategic investment in Germany’s Your Family Entertainment AG (FRA:RTV), one of Europe’s largest distributors and broadcasters of high-quality programs for children and families.
Genius Networks consists of Kartoon Channel!, Frederator Network and Ameba. Kartoon Channel! is a globally distributed entertainment platform with penetration in a vast majority of the U.S. television market and international expansion with launches in key markets around the world.
Kartoon Channel! is available across multiple platforms, including iOS, Android Mobile, Web, Amazon Prime Video, Apple TV, Amazon Fire, Roku and The Roku Channel, Pluto, Comcast, Cox, Dish, Sling TV, Android TV, Tubi, Xumo, Samsung and LG Smart TVs. Frederator Network owns and operates the largest global animation network on YouTube, with channels that boast over 2000 exclusive creators and influencers, garnering on average over a billion views every month. Ameba is a children's video streaming service that is full of active, engaging and intelligent programming.
For additional information, please visit www.gnusbrands.com.
Forward Looking Statements: Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation, our ability to generate revenue or achieve profitability; our ability to obtain additional financing on acceptable terms, if at all; the potential issuance of a significant number of shares, which will dilute our equity holders; fluctuations in the results of our operations from period to period; general economic and financial conditions; our ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; our reliance on and relationships with third-party production and animation studios; our ability to market and advertise our products; our reliance on third-parties to promote our products; our ability to keep pace with technological advances; our ability to protect our intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and in the Company's subsequent filings with the Securities and Exchange Commission (the "SEC"). Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.
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Released May 22, 2023