DHX Media signs CAA-Global Brand Group to represent Peanuts Worldwide in China and Asia (outside Japan) in a deal that it expects to boost the brand’s revenue in the region 35 percent over the next five years, CEO Michael Donovan told analysts.

The pact, which runs through 2023, will increase revenue from the region in the “low single digits” of millions of dollars in the first year, CFO Douglas Lamb said. Those areas currently account for about 10% of Peanuts’ annual revenue

Sony Creative Products (SCP), whose affiliate Sony Music Entertainment earlier this year acquired 39% of Peanuts Worldwide, signed a 10-year extension of its representation of Peanuts in Japan; it began handling licensing there in 2010. DHX plans to produce new premium Peanuts long-form content and short-form videos for its WildBrain YouTube network. It recently released short-form videos on WildBrain featuring Snoopy.

The plan for new Peanuts content comes as DHX sharpens its focus on streaming services as part a recently completed strategic review. New programming is being developed for Strawberry Shortcake, which DHX acquired along with Peanuts from Iconix last year. It will continue to deliver programming for cable channels, having launched “Mega Man” on Cartoon Network in the U.S. in August.

DHX also is overhauling programming for “Teletubbies,” which fell short of expectations in the U.S. on Nickelodeon, but was successful in international markets, most notably in the UK, Donovan said. Teletubbies will be relaunched in the U.S. during the next 1-2 years on the WildBrain network, Donovan said.

“We had to reimagine our programming top to bottom and we should have done it year ago, but we are doing so now,” Donovan said.

To help fund production, DHX suspended its quarterly dividend, which will free up $10 million annually to invest in WildBrain and pay down debt, the company said. DHX’s long-term debt and obligations under finance leases was $756.5 million as of June 30, down from $983 million a year earlier.

DHX’s net loss in Q4 ended June 30 widened to $21.6 million from $18.3 million.  Revenue rose 11 percent in revenue to $97.4 million, driven by its Peanuts and WildBrain businesses. Minus Peanuts, DHX’s Q4 revenue would have decreased 37.3 percent to $63.8 million.

WildBrain revenue increased 68 percent to $57.3 million in the year ended June 30. It took over management of YouTube channels for several properties including Chuggington, Popeye and StoryBots.

Contact:

DHX Media, Douglas Lamb, CFO,902-423-0260, douglas.lamb@dhx.com