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BEVERLY HILLS, Calif., May 15, 2024 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American: TOON) today provided a business update for the first quarter ended March 31, 2024.

Andy Heyward, Chairman & CEO of Kartoon Studios, stated: “Following a transformative 2023 where we established a foundation for long-term growth and sustainable profitability, we reduced operational losses in the first quarter of 2024, and now project profitability in Q2 2025, as the animated brands and channels continue to expand and grow. Our Chief Financial Officer Brian Parisi's rapid implementation of strict cost discipline since joining us in September 2023 continues to positively affect our bottom line.”

Parisi commented: “We are confident recent actions will drive Kartoon Studios toward profitability in 2025. In the first quarter of 2024, we further reduced direct operating costs, which declined by over 60% compared to the same period last year, and sequentially by 29% from the fourth quarter of 2023. To further help move towards profitability, we continued to manage General & Administrative expenses, with costs declining by 18% over the same period last year, and sequentially by 16% from the fourth quarter of 2023. With the implementation of AI in production, we will continue to see margins increase and opportunities to expand our catalog of evergreen animation. Concurrent with the above, the Company maintains a healthy balance sheet with no Long-Term Debt.”