DHX Media swung to a $2.4 million net loss in Q1 ended Sept. 30 due largely to its having a smaller interest in the operations of Peanuts Worldwide. DHX’s revenue rose 5.4% to $104 million.

DHX sold a 39% stake in Peanuts to Sony earlier this year, reducing its interest to 41% with the Schultz family controlling the remaining 20%.

In Q1, Peanuts-related sales grew 12% as total merchandising and licensing revenue jumped 11% to $40 million. A Peanuts hotel opened in Kobe, Japan and a café in Sao Paulo, Brazil, while the UK chain Mothercare launched a baby apparel DTR, with plans for a second collection in the spring. Peanuts Worldwide is nearing a “number of major agreements to grow” the brand, DHX President Josh Scherba told analysts without disclosing details.

DHX is developing short-form Peanuts content for its WildBrain YouTube network and has “larger content plans,” Scherba said. WildBrain’s Q1 revenue increased 45% in Q1 to $11 million.

In addition to Peanuts, DHX is producing a new series, “Rev and Roll,” with China’s Alpha Group with plans to launch it next year in Canada (on DHX’s Family Channel) and China. Alpha Group is the master toy licensee. DHX also will release the preschool animated series “Chip and Potato” on Netflix in 2019.

Meanwhile, DHX’s CPLG agent business posted a $632,000 loss in Q1, reversing a $2.4 million profit a year earlier as revenue declined 50% to $2.5 million. CPLG has signed several agreements in recent months to represent Archie Comics, Dr. Seuss and Line Friends.

DHX’s content revenue rose 10.6% to $88 million as profit increased 7.6% to $21.2 million.

Contact:

DHX Media, Douglas Lamb, CFO, 902-423-0260