Wildbrain Ltd ((TSE:WILD)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The recent earnings call for WildBrain Ltd. was marked by a generally optimistic sentiment, despite some challenges. The company highlighted strong growth in licensing and successful brand strategies, particularly with Strawberry Shortcake and Peanuts. However, they also noted challenges in content creation revenue and a strategic exit from the Television business. Overall, the sentiment leaned towards optimism with a focus on future growth opportunities.
Significant Growth in Licensing
Licensing revenue for WildBrain surged by 33% year-over-year, with Strawberry Shortcake alone growing nearly 200%. This remarkable growth has made Strawberry Shortcake a major contributor to the Licensing segment, showcasing the brand’s strong market appeal and strategic positioning.
Peanuts Brand Success
The Peanuts brand experienced widespread demand across various categories and geographies, establishing a new baseline for success. Notably, the brand saw exceptional performance in Asia, particularly in China, highlighting its global appeal and potential for further expansion.
Audience Engagement Growth
WildBrain’s AVOD and FAST channels witnessed a 55% growth in Q4, reaching 5.7 billion minutes. This expansion has extended the reach of their intellectual properties and opened new monetization opportunities, reinforcing the company’s digital strategy.
Media Solutions and Digital Strategy
The company sees strong potential for growth in its Media Solutions division, supported by a growing pipeline and differentiated market capabilities. This strategic focus is expected to drive future revenue and enhance WildBrain’s digital presence.
Strong Financial Performance
WildBrain reported a fiscal 2025 revenue of $523 million, marking a 13% increase year-over-year. Excluding the Television segment, revenue was $487 million, up 14% year-over-year. Adjusted EBITDA also rose by 5%, reflecting the company’s robust financial health.
Content Creation Revenue Decline
Despite overall growth, WildBrain faced a decline in Content Creation and Audience Engagement revenue, which was $203 million, down 5% year-over-year. Q4 revenue in this segment also saw a 12% decrease, indicating areas for improvement.
Television Revenue and Exit
Television revenue for the year was $36 million, with WildBrain making a strategic decision to exit the Canadian broadcast business. This move follows channel removals and aligns with the company’s shift towards digital platforms.
Distribution Revenue Timing Issues
The company experienced a decrease in Q4 revenue due to distribution revenue timing shifts, which contributed to a headwind in Adjusted EBITDA. This issue highlights the need for improved revenue timing management.
Forward-Looking Guidance
Looking ahead, WildBrain presented a strong outlook for fiscal 2026, expecting revenue growth between 15% to 20% and adjusted EBITDA growth of 15% to 20%, excluding the Television segment. Key growth drivers include a 33% increase in global licensing revenue, with significant contributions from Strawberry Shortcake and Peanuts. The company is also focusing on digital platforms and expects its Media Solutions division to potentially double its revenue next year.
In summary, WildBrain Ltd.’s earnings call conveyed an optimistic outlook, driven by strong licensing growth and strategic brand management. Despite challenges in content creation and a strategic exit from the Television business, the company remains focused on leveraging digital opportunities and expanding its global reach, particularly in Asia. With a promising forecast for fiscal 2026, WildBrain is poised for continued growth and success.