Kartoon Studios Provides Business Update for the Third Quarter of 2023

Affiliate, Mainframe Studios Benefitting from Post-Strike Content Demand and New Orders; Robust Pipeline of New Content Expected in the Coming Quarters

Company Expects to Resume Growth Trajectory Following Industry Slowdown

Kartoon Channel! Anticipates First Ever Break-Even EBITDA in Fourth Quarter of 2023, a First Since Its Launch

New CFO Brian Parisi Brings Strong Track Record from the NFL and Live Nation, Focused on Value Creation, as well as Growing Revenues and Driving Sustainable Earnings

BEVERLY HILLS, Calif., Nov. 17, 2023 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE American:TOON) today provided a business update for the third quarter of 2023.

Andy Heyward, Chairman & CEO of Kartoon Studios, stated, “Following the settlement of the Writers Guild of America (WGA) and Screen Actors Guild (SAG) disputes, we are witnessing a turnaround from the recent industry-wide slowdown of program orders by broadcasters and streaming networks, which impacted Mainframe Studios. Even though Kartoon Studios and its related companies and subsidiaries aren't part of WGA or SAG, the strikes had a noticeable impact on the entire industry in the third quarter, with a marked decrease in spending and new content orders. Now, there is significant pent-up demand, and we are benefiting from a substantial increase in activities. We are already seeing orders coming into Mainframe for a meaningful number of new content series. We anticipate these forthcoming orders will positively impact revenue in upcoming quarters, allowing the Company to resume the growth trajectory that it had been experiencing prior to the strikes. Animation is a timeless and reliable performer that is a staple for broadcasters and streamers alike. Mainframe Studios, Kartoon Studios’ affiliated work-for-hire and original content production studio based in Vancouver, Canada, has become an integral part of our company and our future success. Mainframe Studios has built a well-earned reputation as one of the premier content suppliers to Netflix, Disney+, YouTube, Hulu, Mattel, Spin Master, and others, which we are very confident will continue, as they deliver reliable and top-performing brands. During this recent quarter, we delivered our longstanding production of BARBIE to Netflix, shortly after the blockbuster success of the live Barbie movie. We also delivered our UNICORN ACADEMY series produced for Spin Master, which debuted as the #1 ANIMATED SERIES ON NETFLIX. Concurrently, as a result of the US ad market regaining momentum, we are also seeing an uptick in business at our Beacon Media Group subsidiary, which is a leader in buying children’s media for many of the top toy companies in the world and has been winning new clients and increasing its buying base, and revenues.”