Kartoon Channel!'s Streaming Business Achieved Profitability in the First Quarter of 2024 and Continues Growth; User Rankings in Apple App Store Now Beat Disney+; Operational Efficiencies Expected to Drive Company-Wide Profitability Direct Operating Costs Reduced by Over 60% in the First Quarter of 2024 Compared to Same Period in 2023; 29% Reduction Sequentially Compared to the Fourth Quarter of 2023 Flagship Brand, "Stan Lee Universe," Grows Across Multiple Sectors: New Store on Amazon; New Partnership with World's Largest Digital Collectibles Platform, "VeVe" for Collectibles; and New YouTube Channel, 'Stan Lee Presents,' Debuts with Over 300,000 Subscribers, Driving Revenues and Enhancing Global Fan Engagement, with Marvel Mastermind Company Launches New AI Initiative Using Nvidia Omniverse, Revolutionizing Animation Pipeline; Mega-Brand to be Announced in Q2 2024 Company Takes in Cash to Enhance Liquidity as Catalogue of Animated Cartoon Characters Continues to Grow BEVERLY HILLS, Calif., May 15, 2024 (GLOBE NEWSWIRE) -- Kartoon Studios (NYSE: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." "With the media disruptions from the writers and actors strikes now behind us, we are excited about the traction each of our operating subsidiaries are experiencing," continued Heyward. "Specifically, newly greenlit projects are projected to generate over $40 million of revenue within our Canadian production arm, Mainframe Studios, including PB&J for PBS, Super Kitties for Disney Channel, and new episodes of the hit, Unicorn Academy, currently one of the most viewed children's series on Netflix, while the sales pipeline continues its rapid expansion with further orders expected this year. In the first quarter of 2024, our direct-to-consumer streaming services, including Kartoon Channel!, achieved profitability, driven by sustained subscriber growth and streamlined operations, showing month-over-month improvements continuing throughout the quarter and projected to continue growing. Available on a wide array of platforms, Kartoon Channel! has achieved extraordinary domestic penetration, reaching nearly 100% of U.S. television households, as its growth continues. Since its launch less than four years ago, Kartoon Channel! has rapidly emerged as a top platform for children's entertainment, featuring a wide range of safe, family-friendly programming with thousands of episodes. Our streaming app boasts extensive market penetration and top-notch quality, as evidenced by a 4.9 out of 5 stars rating on the Apple app store, making us the leading children's streaming service with user rankings now ahead of Disney+, YouTube Kids, Netflix, PBS Kids, and Cartoon Network. Concurrently, our subscription service of Kartoon Channel!, including distribution on Amazon Prime Video Channels, continues to grow and has become increasingly profitable." "Launching a kid's streaming service was not easy, but we achieved profitability in record time, and believe this will be an ongoing driver of growth and profitability for years to come," stated Todd Steinman, President of Toon Media Networks & Chief AI Officer. Heyward added: "Further expanding our global presence, Kartoon Channel! Worldwide, under the leadership of Paul Robinson, former Managing Director of Disney Channel Worldwide, continues to grow across international markets. As Paul did years ago, when rolling out Disney Channel to become the pre-eminent kids broadcast service of its time, he has now brought the same talents and relationships to bear for Kartoon Channel! Worldwide, and the seeds have been planted to become the dominant global children's service in the world. Overall, the strategies and ...