New York City-based 4Kids Entertainment’s net revenues for the second quarter totaled US$4.4 million, marking a US$12.1 million drop from the same period in 2008.
The financial results for the company were released today, noting year-to-date revenues of US$14.6 million, which were off more than 50% from the first six months of 2008 when the company generated US$31.6 million.
For his part, CEO Al Kahn said part of the performance was attributable to a non-recurring loss of US$7.25 million on the sale of one of its auction rate securities and that Chaotic trading card sales contributed no revenue in the second quarter. According to Kahn, US$2.6 million worth of Chaotic trading card sales have been shipped in Q2,but income can’t be recorded until they’re sold through at retail.
On that note, Kahn said sales of Chaotic trading cards in the US have steadily increased since the debut of animated series Chaotic on Cartoon Network in June, and over the past eight weeks, the property’s trading card sales in the US have more than doubled.
As widely reported last week, 4Kids has retained financial advisor Montgomery & Co. to re-evaluate its business strategy, which could potentially involve asset sales, alliances with strategic partners and/or a sale of the company outright.