4Kids Posts Million-Dollar Loss in 2006
4Kids Entertainment lost $2.3 million in the fourth quarter of 2006 on revenues of $18.3 million, the company announced today. That compares to a $500,000 profit on revenues of $23.5 million in the same quarter of 2005.
For the year, 4Kids lost $1 million on revenues of $71.8 million, compared to 2005 earnings of $5.1 million on revenues of $80.6 million.
The company blames the drops on declining licensing revenue from Teenage Mutant Ninja Turtles and Yu-Gi-Oh! and falling sales revenues at 4Kids TV.
Chairman Alfred Kahn says the company has instituted a number of cost-cutting activities, but it is also negotiating a multi-year extension of its agreement with Fox to carry 4Kids TV. Kahn also noted that the company has cash and investments of $111 million and carries no debt.
[Source: Business Wire]