In concluding its strategic review, DHX Media has inked an agency deal with CAA Global Brand Management Group (CAA-GBG) for Peanuts in Asia, with plans to focus more on investing in WildBrain and developing premium originals.<\/p>\n
The five-year, multi-million-dollar agreement with CAA-GBG follows DHX’s previously announced sale of a minority stake in Peanuts to Sony for $178 million. Among several other changes, the company has also suspended its quarterly dividend, effective immediately, resulting in approximately $10 million in annual funds that can be used to expand WildBrain and pay down debt.<\/p>\n
\u201cThe strategic review marked the end of an important stage in the evolution of DHX Media,\u201d said Michael Donovan, the executive chair and CEO of DHX Media. \u201cIn the first stage of the company, we grew rapidly by acquisition to assemble a world-leading library of children\u2019s and family content. In the second stage, we began to upgrade the necessary team, systems and processes to monetize that portfolio in the global market.<\/p>\n
“We are well-positioned to enter our next stage of growth, focused on what we identified during the strategic review as the two largest opportunities for kids\u2019 and family content: accelerating investment in our WildBrain network to capitalize on the rising popularity of kids\u2019 content on YouTube; and better leveraging our IP portfolio to produce premium originals for major streaming services. We believe this refocusing of our strategy will allow us to deliver significant growth, while generating free cash flow to pay down debt.\u201d<\/p>\n
He continued: \u201cWe are going to continue to invest in WildBrain, where we see tremendous potential for value-creation and continued double-digit growth. We are also going to take a highly targeted approach to developing premium content for streaming services and key broadcasters, focusing on kids\u2019 shows with [the] greatest consumer products potential.\u201d<\/p>\n
Also as part of the strategic review, DHX recently appointed a new CEO, CFO, COO, president and CCO.<\/p>\n
Operational processes changes include reducing the company’s overall facilities footprint by 35,000 square feet; realigning the DHX Brands team into franchise and classic brand management; reducing the development slate and production pipeline to focus on key, high-profile properties; and rebuilding the company’s budgeting process.<\/p>\n
Structural adjustments include staff reductions and rationalizations; combining the Vancouver animation production from two studio facilities into one; consolidating the DHX Brands and Peanuts Worldwide operations in the U.S; and bringing agency representation on Peanuts in-house to CPLG for the U.K., France, the Middle East, Greece and Turkey.<\/p>\n
Results from these changes contributed to the company generating positive cash flow of $37.8 million for fiscal 2018, excluding one-time acquisition and related refinancing costs of $24.4 million.<\/p>\n
\u201cRevenue in fiscal 2018 increased by 45 percent to $434.4 million, primarily driven by Peanuts and continued strong growth in WildBrain,\u201d stated Donovan. \u201cDuring the course of the last year, we made great progress in realizing operational efficiencies and refocusing our production business. As the company exits the strategic review and internal review…we have realigned our strategy to capitalize on key macro trends in the industry. These trends include the rising demand from the global streaming market for premium original programming and the increasing popularity of kids\u2019 content on YouTube, which is driving rapid growth in our WildBrain platform. We believe this significant refocusing of our strategy and efforts will allow us to deliver growth, while generating free cash flow to pay down debt.\u201d<\/p>\n
Doug Lamb, the CFO of DHX Media, added: \u201cReducing leverage is one of our key priorities. The Sony transaction was a significant step in that direction and ensures we have the financial flexibility to maintain investment in growth. Our operations are providing improving free cash flow. In combination with cash savings from the quarterly dividend suspension, that provides additional funds for debt repayment.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
In concluding its strategic review, DHX Media has inked an agency deal with CAA Global Brand Management Group (CAA-GBG) for Peanuts in Asia, with plans to focus more on investing in WildBrain and developing premium originals.<\/p>\n","protected":false},"author":479,"featured_media":14988,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":0,"footnotes":""},"categories":[21],"tags":[178,1481],"class_list":["post-14987","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-top-stories","tag-dhx-media","tag-peanuts","pmpro-has-access"],"yoast_head":"\n