New York City-based 4Kids Entertainment reported a downturn in Q1 over the same period last year. Net revenues in the first quarter totalled US$14.9 million, compared to US$19.3 million in 2006. The company’s net loss for the quarter was US$200,000 as compared to a net gain of US$1.5 million last year.
According to chairman and CEO Al Kahn, the increase in Teenage Mutant Ninja Turtles and Cabbage Patch Kids licensing revenues could not compensate for decreased turnover from properties including Yu-Gi-Oh! and Winx Club, and lower than expected revenues from newer properties.
Although the company undertook cost-cutting measures during Q1, Kahn believes the purchase of the trading card company TC Digital Games offset any savings. 4Kids is banking on the upcoming release of the Chaotic trading card game to comic and hobby stores in late June, and the launch of the Chaotic website, to turn fortunes around.
Kahn is also expected to announce a slate of new animated series for the 2007/8 4KidsTV broadcast season in the coming weeks.