Genius Brands International, a global brand management company that creates, produces, broadcasts, and licenses entertainment content for children announced that they have recorded a 217 per cent increase in revenue to $7.9 million in 2021 versus $2.5 million for 2020. The company also announced that it has completed the acquisition (the “Transaction”) of WOW! Unlimited Media Inc.
“The Transaction is expected to provide immediate and continuing financial benefits with strong future revenue expected, and significant contracted bookings through 2022 and into 2023. WOW! estimates 2021 revenue of approximately $64.2 million USD, a 31 per cent increase over the same period last year, net income of approximately $2.8 million USD, and approximately $6.3 million USD of EBITDA for the year ending 31 December 2021, a 279 per cent increase over 2020,” Genius Brands shared in an official statement.
“The acquisition of WOW! represents a transformational event for Genius Brands as we execute our strategy to establish the Company as a foremost producer, broadcaster, and licensor of high-quality children’s entertainment and children’s consumer products. The acquisition is expected to provide a number of immediate benefits, as it is expected to result in increased revenues and is expected to be accretive,” said Genius Brands CEO and Chairman Andy Heyward.
Heyward further mentioned, “The acquisition is also expected to provide synergies with our existing business, as well as our growing global channel system. We look forward to leveraging the production capabilities of WOW!’s Mainframe Studios Inc., as well as their Frederator Networks’ established distribution platform on YouTube, as we align it with the global growth of Kartoon Channel! Worldwide. WOW!’s Canadian production facilities, Mainframe Studios, is expected to enable us to drive significant margin expansion and trim costs by transferring our current animation production from China. Our belief is that there are very few asset classes with the proven and enduring value of animated children’s programs. Closing of the acquisition is a significant milestone for Genius Brands, representing the culmination of several months of tremendous effort by all those involved.”
“We expect the combination of our two organizations to create a global leader in children’s entertainment. Under the leadership of Michael Hefferon, president and chief creative officer, and Kim Dent Wilder, EVP, our Vancouver headquartered Mainframe Studios Inc. is expected to continue to deliver the highest quality animation production to our networks, partners and clients. Mainframe Studios Inc. is expected to also continue to be a producer and supplier of Canadian content shows to both domestic and international clients. Frederator Studios is expected to continue to deliver its unique brand of animation production through the continued management of Kevin Kolde, production head, and Isabel Bailin, development director, with exciting new projects in production and development,” WOW! CEO and chairman Michael Hirsh said.
The company has filed its Form 10-K for the year ending 31 December 2021, and provided a business update in the form of a letter to shareholders from the company’s chairman and CEO, which is available on the blog section of the company’s website.
Other key highlights are:
- WOW! achieved revenue of USD $64.2 million for 2021 (Based on unaudited financial results of WOW! Unlimited Media for the year-ended 31 December 2021. Conversion of CAD to USD based on the exchange rate as of 4 April 2022. WOW’s audited financials are expected to be completed by the end of April 2022, in accordance with IFRS)
- Acquired a controlling stake in Your Family Entertainment
- Net cash, cash equivalents and marketable securities of over $116 million as of 31 December 2021
- Kartoon Channel! growing its viewership and now carried on virtually every major platform
- Kartoon Channel! Kidaverse on track to launch on 15 April
- Kartoon Channel! Worldwide now available in 67 countries
- Stan Lee Universe/Stan Lee Centennial expected to rollout in 2022 concurrent with his 100th birthday
- Stan Lee’s Superhero Kindergarten growing its global audience
- Moving rapidly towards the launch of Shaq’s Garage animated series featuring Shaquille O’Neal
- Season three of Rainbow Rangers in production
- Continued expansion of senior management team with appointment of industry leaders from Disney, Netflix and Warner Brothers