Peanuts Worldwide signed 66 consumer products licensing agreements in Q2 ended Dec. 31 and is readying Apple TV programming for later this year, DHX Media executives said in releasing earnings.

DHX’s share of Peanuts-related consumer product revenue rose 7% during the quarter, Executive Chairman-CEO Michael Donovan said.  DHX owns 41% of Peanuts Worldwide, while Sony has 39% and the estate of creator Charles Schulz, 20%.

DHX recorded its first revenue from the Apple agreement in Q2 as it develops a new Peanuts series, shorts and specials. DHX is creating STEM-based short-form content for Apple as part of multi-year alliance between Peanuts and the National Aeronautics and Space Administration (NASA) that is designed to yield consumer products this year as NASA marks the 50th anniversary of the Apollo 10 and 11 missions.

DHX is cutting annual production to 20 shows from 26 as it focuses on “those that we think have the greatest potential, particularly with respect to consumer products,” Donovan said. It sold a studio in Halifax and is focusing production on its facilities in Vancouver. DHX also is developing new content for Strawberry Shortcake, which Donovan called “a very high priority for us.” The timing for releasing new Strawberry Shortcake content hasn’t been set, a DHX spokesman said. DHX acquired Strawberry Shortcake along with Peanuts Worldwide from Iconix in 2017.

DHX swung to a $17.9 million net loss in Q2 ended Dec. 31 from a $7.4 million profit a year earlier as it recorded $14.1 million on non-cash unrealized foreign exchange losses. It also took a $1.9 write-down on film, TV and library content. Total revenue declined 3.3% to $117 million. DHX’s Wildbrain YouTube Network showed a 13% increase in revenue to $19.9 million as it signed agreements to manage content for The Smurfs, Miffy and PlayMobil.

DHX’s licensing agency CPLG’s Q2 profit rose 19.1% to $902,000 as revenue increased 4.8% to $4.3 million. The agency signed several new agreements in the quarter including one that will take Andrew Lloyd Webber’s “The Phantom of the Opera”, “CATS” and “Starlight Express” into consumer products. CPLG also recently signed to represent Emoji Co. in Russia, France and Germany, and with MGM’s animated feature filmThe Addams Family in EMEA.

Contact:

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