Record Profit for BKN

LONDON, November 27: BKN International has released
its financial results for the year ended September 30, 2007, reporting record
net income for the third year in a row, with revenues up 29 percent to 16.3
million euros.

Profit before tax at the kids’ entertainment
company was up 33 percent to 5.5 million euros and net profit increased 12
percent to 5 million euros. EBITDA, meanwhile, jumped 47 percent to 9.1 million
euros.

In addition, BKN reported that its programming
rights’ asset value increased to 53.7 million euros from 36.6 million euros in
2006.

Commenting on the results, Allen Bohbot, the
chairman and CEO of BKN, noted: “The markets look healthy for children's
animation in the near term with hundreds of dedicated animated children's
channels operating throughout the world and especially with the expansion of
digital high definition, where BKN intends to become a market leader. The company
is strategically well placed to take advantage with our London office handling
Continental Europe and Asia, our New York office handling North America and our
Barcelona office handling the important markets of Spain, France, Portugal,
Italy and Latin America. We expect major revenue contributors in 2008 to come
from Zorro—Generation Z and Dork Hunters from
Outer Space as we only delivered 50 percent of those episodes
in fiscal 2007. In addition, we expect to see revenues from the new 2008
projects which will begin delivery in the second half entitled Stone Age
and Pocket Penguin Adventures.”

Bohbot continued: “We are optimistic about the
prospects for video streaming over the Internet. In this past fiscal year, the
value of the Internet for video streaming has truly expanded. BKN has a
philosophy of carefully choosing its partners in this new space and has entered
into deals only in the more mature U.S. market. Unlike many of our local
competitors, BKN holds the worldwide copyrights to the major properties in its
portfolio of animated properties in perpetuity and accordingly, we are in a
unique position to expand into this market when we feel the timing is right to
do so. For the first time in fiscal 2007, the company reported revenue from
this segment of 468,000 euros (3 percent of turnover).”

—By Mansha Daswani