Summary of WildBrain's Conference Call Company Overview - **Company**: WildBrain - **Transaction**: Sale of 41% interest in Peanuts to Sony Music Entertainment Japan and Sony Pictures Entertainment for CAD 630 million [3][4] Key Points and Arguments 1. **Transaction Impact**: The sale will result in a debt-free balance sheet, saving approximately CAD 50 million in annual interest payments and leaving over CAD 40 million in cash surplus [4][24] 2. **Strategic Focus**: The transaction allows WildBrain to reinvest in high-margin franchises like Strawberry Shortcake and Teletubbies, as well as in digital content and advertising technologies [4][10] 3. **Valuation**: The transaction represents a 23 times fiscal 2025 attributable EBITDA multiple, highlighting the strength of the Peanuts franchise and the value created during WildBrain's ownership [3][4] 4. **Future Growth**: WildBrain aims to leverage its Flywheel strategy to enhance its wholly-owned brands, focusing on premium storytelling and global licensing [5][11] 5. **Financial Restructuring**: The company has undergone significant restructuring, including debt refinancing and winding down its legacy television business, which has reshaped its operating and financial profile [6][24] 6. **Guidance Update**: Fiscal 2026 guidance has been paused until the resegmentation of financial reporting is complete [7][8] 7. **Ownership Benefits**: WildBrain retains 100% ownership of Strawberry Shortcake, which is expected to generate higher returns compared to Peanuts due to full economic participation [9][12] 8. **Market Dynamics**: The kids' media landscape is shifting towards digital platforms like YouTube and FAST, with traditional linear TV viewership declining significantly [18][19] 9. **Advertising Opportunities**: WildBrain's extensive reach on digital platforms positions it well to capture advertising revenue in a fragmented market [19][20] 10. **Content Creation**: The company is focused on producing both premium and lower-cost digital-first content, with a strong pipeline including a Peanuts feature film for Apple [21][22] Additional Important Insights - **Retail Sales Potential**: Strawberry Shortcake's retail sales potential is estimated at CAD 800 million, while Teletubbies is projected at CAD 1 billion [15][16] - **Licensing Agency**: WildBrain CPLG is one of the largest independent licensing agencies, enhancing the company's ability to manage both owned and third-party brands [16][17] - **AI Integration**: WildBrain is exploring AI tools to improve production efficiency and reduce costs, which could enhance returns on franchise content [22][24] - **Long-term Strategy**: The company plans to maintain a clean balance sheet while exploring share buybacks and strategic acquisitions to drive growth [24][25] This summary encapsulates the key aspects of WildBrain's conference call, focusing on the company's strategic direction, financial implications of the recent transaction, and future growth opportunities in the evolving media landscape.

Core Insights - WildBrain Ltd. reported its Q1 2026 results, highlighting strong growth in its Global Licensing business and a strategic exit from its Television operations to focus on higher-margin opportunities [3][4][5]. Q1 Operational Highlights - The Global Licensing business achieved a 29% year-over-year revenue increase, reaching $81.1 million, driven by brands like Peanuts, Strawberry Shortcake, and Teletubbies [8]. - Content Creation and Audience Engagement revenue decreased by 3% to $39.8 million, reflecting growth in production but softness in content distribution [9]. Q1 Financial Highlights - Total revenue for Q1 2026 was $125.5 million, a 13% increase from $111.0 million in Q1 2025. Excluding Television, revenue was $120.8 million, up 16% year-over-year [6][7]. - Net loss attributable to shareholders was $32.6 million, compared to a loss of $10.6 million in Q1 2025. Excluding Television, the net loss was $31.4 million, compared to $15.1 million in Q1 2025 [11]. - Adjusted EBITDA increased by 37% to $20.9 million, with a 53% increase to $17.4 million when excluding Television [10][12]. Fiscal Year 2026 Outlook - The company expects strong growth in Global Licensing, projecting a 29% year-over-year increase in revenue, and reaffirmed its outlook for Fiscal Year 2026 [6][13]. - Revenue is anticipated to be between $560 million and $590 million, with Adjusted EBITDA expected to be approximately $80 million to $85 million, reflecting a growth of 15% to 20% [13].

Core Viewpoint - WildBrain Ltd. will announce its Fiscal 2025 Q4 and Full Year financial results on September 25, 2025, followed by a conference call on September 26, 2025, to discuss these results [1]. Group 1: Financial Results Announcement - The company will report its financial results after market close on September 25, 2025 [1]. - A conference call is scheduled for 10:00 a.m. ET on September 26, 2025, where management will discuss the results [1]. Group 2: Conference Call Details - The conference call can be accessed online or by phone, with specific dialing instructions provided for North America and international participants [2]. - A replay of the call will be available until October 26, 2025, using a designated access code [2]. Group 3: Company Overview - WildBrain is a leader in kids' and family entertainment, managing a vast library of approximately 14,000 half-hours of content, including popular franchises like Peanuts and Teletubbies [4]. - The company focuses on content creation, audience engagement, and global licensing, aiming to create exceptional entertainment experiences [4]. - WildBrain's content is widely available on platforms like YouTube, where it has achieved approximately 1.5 trillion minutes of watch time [5].