Kartoon Studios Reports Strong Business Results with 8.2% Sequential Revenue Growth for Q4 2024, Marking Third Consecutive Quarterly Increase
Operating Expenses Decreased by 57.4% in 2024; Operating Loss Improved by 76.5% in 2024
Kartoon Channel Continues Growth in Viewers, Platforms, Revenue, and Profitability While Continuing to Lead All Streamers in Viewer Rankings in Apple App Store
The Company's Family and Kids' Ad Unit, Beacon Media Group, Achieved Profitability in 2024 with High-Efficiency Ads and Data-Driven Strategies, Poised for Continuing Growth in 2025
Upcoming Animated Series, Hundred Acre Wood's Winnie and Friends, and Stan Lee Universe's The Excelsiors, Poised for Broad Launches in 2025 and 2026
BEVERLY HILLS, Calif., March 31, 2025 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE:TOON) today provided a business update for the fourth quarter of 2024, highlighting continued momentum in revenue growth across all units, substantial improvements in cost efficiency and noteworthy progress toward profitability expected in 2025.
Key Financial Highlights for Q4 2024:
Total Revenue: Third consecutive quarter of revenue growth; Total revenue increased by 8.2% compared to Q3 2024 and 7.0% compared to Q4 2023, driven by consistent growth across all divisions.
Production Services Revenue: Surged by 44.7% in Q4 2024 compared to Q4 2023, reflecting strong demand for premium animation content at Mainframe animation production subsidiary.
Total Operating Expenses: Decreased by 66.0% in Q4 2024 compared to Q4 2023 and by 57.4% for the full year 2024 compared to 2023. This decrease in operating expenses reflects the effectiveness of continuing operational efficiency initiatives.
General & Administrative (G&A) Expenses: Decreased by 39.2% in Q4 2024 compared to Q4 2023 and by 28.6% for the full year 2024 compared to 2023.
Loss from Operations: Improved by 88.0% in Q4 2024 compared to Q4 2023 and by 76.5% for the full year 2024 compared to 2023, continuing the path towards profitability in 2025.
"In 2024, Kartoon Studios made significant progress across all core business segments and towards overall profitability in 2025 and beyond," said Andy Heyward, CEO of Kartoon Studios. "Virtually all of our operating units have reached profitability, including tentpole children's broadcaster, Kartoon Channel, tentpole family and kids advertising unit, Beacon Media, and Frederator Networks."
Mainframe Studios, Kartoon Studios' largest revenue-generating unit, achieved a 44.7% revenue increase in Q4 2024 compared to Q4 2023, driven by strong demand for high-quality animation and a surge in contracted projects, across a wide breadth of clients, including Disney, Netflix, Sony Kids, PBS, Australian Broadcasting Company (ABC), Canadian Broadcasting Company (CBC), Mattel, and Spin Master Toys among others. Over 90% of its 2025 revenue target is already contracted, with a backlog of orders into 2026 expected to surpass 2025 levels. Mainframe Studios produces hit shows like Barbie, Coco Melon, Super Kitties, and Unicorn Academy and has consistently delivered highly successful children's programs. As global demand for high-quality animation continues to grow, Mainframe's ability to provide feature-film quality animation positions it as a cornerstone of Kartoon Studios' long-term growth strategy, and profitability in 2025.
Kartoon Channel! and Frederator Networks (Toon Media Networks) delivered strong results and profit in 2024, significantly building upon 2023 through higher subscription revenues, distribution expansion, increasing advertising revenue, and high-performance diverse content offerings now including Peppa Pig, Super Mario Brothers, Shaq's Garage, Yu Gi Oh, Gummy Bears, Rainbow Rangers, Roblox Rumble, and Minecraft: Journey to the End.
Kartoon Channel! remains the #1 ranked streamer in the Apple app store, rated by users, besting YouTube Kids, Netflix, Disney+, and others, and continues to grow each quarter based on its unrelenting focus on children's safety. Kartoon Channel is now available in the US as well as 61 international markets, reaching more than 1.5 billion viewers worldwide across FAST Channels, VOD, and Smart TV, on platforms including Samsung+, Amazon Prime, Amazon Fire, Android, Tubi, Pluto, Roku, Google, Apple TV, Apple iOs, Comcast cable, Cox cable, and Star TV among others. Its emphasis on exclusive series, localized content, and ad-supported models drove substantial revenue growth. Meanwhile, the Company's Frederator Networks, also turned profitable in 2024 and is now one of the largest global animation networks, generating billions of views across YouTube and viral hits on TikTok and other platforms. Its 2,000 exclusive creators and portfolio of original animated series on YouTube were instrumental in driving ad revenues. By focusing on short-form social media content to broaden reach and merchandising, Frederator's originals attracted a loyal and engaged audience. Looking ahead to 2025, the network plans to expand its e-commerce capabilities on YouTube and social media by offering branded merchandise and digital collectibles, unlocking new revenue streams, and further enhancing profitability.
Mr. Heyward continued: "The expansion of Kartoon Channel! and Frederator Networks has executed a global content strategy that resonates with audiences worldwide, built on safety for children. As we enter new markets in Asia, Europe, and Latin America in 2025, we are now present in over 61 territories and have built significant pipelines for our content for the future. We are confident that our international growth strategy, always promoting safe and positive content, will strengthen revenue streams and solidify our position as a leader in children's entertainment for years to come."
Meanwhile, creative development is focused on Kartoon Studios' upcoming worldwide launch of the animated ...