Strong Licensing Revenue Growth
Licensing revenue grew by 44% year-over-year, driven by strong performances from Peanuts, Strawberry Shortcake, and Teletubbies. Strawberry Shortcake revenue increased by over 200%, and the brand surpassed US$150 million in retail sales over the last 12 months.
Successful Global Campaign with Peanuts and Starbucks
Peanuts partnered with Starbucks for a global IP activation, resulting in merchandise selling out in the first week in most markets, demonstrating strong brand appeal.
Increased Contribution from Owned Brands
Owned brands as a percentage of continuing operations revenue increased from just over 50% to over 70%, indicating a successful focus on core brands.
Positive Cash Flow and Improved Leverage
Free cash flow was positive $13 million, up from negative $3 million in the same quarter last year. Year-to-date free cash flow was positive $67 million, and leverage decreased to 4.4x from 5.3x.
Return to Growth in Content Creation and Audience Engagement
Content Creation and Audience Engagement revenue increased by 40% year-over-year, with new productions for Netflix and Apple TV+ underway.