4Kids Ent.'s revenue in the third quarter 2008 was up about 46 percent, largely due to sales of the CHAOTIC trading cards. The global children's entertainment and merchandising licensing organization also announced a litigation settlement with Fox.
The new settlement agreement means that 4Kids' block of Saturday morning television on the network will end on December 31, 2008, rather than at the end of the 2008-2009 broadcast season in September 2009.
Alfred R. Kahn, Chairman and CEO of 4Kids also said that the company's financial obligation to Fox for the first three quarters of 2009 will also terminate. "We believe that the settlement is favorable for both companies and enables 4Kids, beginning in early 2009, to focus resources on our five-hour block of children's Saturday morning television on The CW Network," he said.
Net revenues for the three months ended September 30, 2008 totaled $17.8 million, compared to $12.2 million for the same period in 2007. Revenue for the third quarter of 2008 included approximately $7.3 million from the sale of CHAOTIC trading cards at major retailers and comic and hobby stores across the U.S. and Canada.
For the nine months ended September 30, 2008, net revenues totaled $49.4 million, compared to $39.1 million for the same period in 2007. Revenue for the nine month period ended September 30, 2008 included approximately $14.7 million from the sale of CHAOTIC trading cards. The company's net loss for the nine months ended September 30, 2008 was $(17.2) million, or $(1.31) per diluted share, as compared to $(6.6) million, or $(0.50) per diluted share for the same period in 2007.
Kahn said the company expects to sell $20-30 million worth of CHAOTIC trading cards in 2008.
4Kids also concluded deals with Playmates to serve as the master licensee to their new YU-GI-OH! 5D'S series.
"Although we are continuing to invest significantly in content creation and our digital platforms, 4Kids.tv and Chaoticgame.com, we currently expect to return to profitability in the fourth quarter of this year. We are hopeful that some of our newer properties, including DINOSAUR KING, ROLLBOTS and GOGORIKI will help strengthen our licensing business in 2009 and that the momentum behind CHAOTIC will continue," Kahn concluded.
