WildBrain Q2 Earnings Call Highlights

Core Insights - WildBrain is undergoing a significant transformation with the sale of its 41% stake in Peanuts for $630 million, which is expected to eliminate debt and provide approximately CAD 40 million in cash proceeds after expenses [3][7][17] - The company is focusing on a more streamlined operating structure and plans to reinvest in its franchises, digital monetization, and infrastructure modernization following the transaction [2][7][20] Financial Performance - In Q2, WildBrain reported continuing operations revenue of CAD 72 million, an 11% increase year-over-year, and adjusted EBITDA of CAD 15 million, up 30% [5][23] - The net loss for the quarter was CAD 20 million, a significant improvement from a CAD 86 million loss in the prior period [5][23] - Discontinued operations revenue was CAD 132 million, reflecting an 83% year-over-year increase, driven by the Peanuts library renewal with Apple TV [17] Licensing and Digital Engagement - Strong performance was noted in licensing, particularly with Strawberry Shortcake and Teletubbies, with Strawberry Shortcake retail sales around $200 million in the trailing twelve months [6][9] - WildBrain CPLG, the licensing agency, also experienced growth, supported by expanded partnerships [11] - Digital engagement remains robust, with FAST viewership increasing by 46% to 24 billion minutes, and YouTube watch time for Teletubbies up 11% year-over-year [14][10] Strategic Focus and Future Outlook - Management has paused fiscal 2026 guidance to assess transformation investments related to the Peanuts sale, with plans to resume guidance for fiscal 2027 [18][20] - The company aims to leverage its strengthened balance sheet and capital reallocation to enhance profitability and sustainable EBITDA growth in the future [20]