DHX Media’s net income rose 21.6% to $7.4 million Q2 ended Dec. 30 as revenue rose 55% to $121.9 million, partly driven by sales of Peanuts-related products. Merchandising and Licensing revenue jumped to $42.7 million from $8.3 as sales of Peanuts products offset a continued decline in Teletubbies-related business in the U.S. Consumer Products accounted for 40% of DHX’s Q2 revenue, up from 17% a year earlier.

DHX acquired the Peanuts and Strawberry Shortcake properties from Iconix Global Brands last year in a $349 million deal. Acquired brands represented 32% of DHX’s Q2 sales.

“The Peanuts acquisition is working, and there is plenty of runway to extend the brand,” CEO Dana Landry told analysts.

DHX is developing new Peanuts content, although the timing for releasing it hasn’t been set.

Meanwhile, DHX is “retooling” Teletubbies for the U.S. market, Landry said. While sales of Teletubbies products have been strong in the UK and Germany and there is “big potential” for the property in China, business in the U.S. has come up short, and “we are reimagining it for the U.S.,” Landry said.

DHX posted $7 million in distribution and consumer product royalty revenue in Q2, much of which stems from its agreement with Mattel relating to program production of Bob the Builder and Fireman Sam.

DHX’s CPLG licensing agency posted a 37.3% decline in Q2 profit to $459,000 as revenue slid 10.6% to $4.1 million, due partly to the downturn in the Teletubbies business.

Contact:

DHX Media, Dana Landry, CEO, 902-423-0260, dana.landry@dhxmedia.com