News

4Kids to End Its Fox Programming Block in December

In its financial statement for the third quarter of 2008 which ran from July 1 to September 30, Sonic X. Fox had originally scheduled the block to run through September of next year. To back out of the contract, 4Kids had to settle with Fox for an undisclosed amount.

The relationship between 4Kids and Fox The CW Network to run original and licensed cartoons over a five-hour Saturday morning block and sell ads to be aired during that time. According to 4Kids CEO Alfred E. Kahn, the dissolution of the Fox contract will allow 4Kids "to focus resources" on its CW programming going into 2009.

4Kids' quarterly results included an increase in net revenues to US$17.8 million, compared to US$12.2 million over the same term last year. $7.3 million of the new revenue came from sales of the Chaotic trading card game. However, 4Kids still experienced a net loss of US$5.3 million (compared to US$4.2 million last year).

For the year to date, net revenues were US$49.4 million, up from US$39.1 million, but net losses have also increased. In the first nine months of 2007, 4Kids lost US$6.6 million; this year, that figure was up to US$17.2 million. Kahn attributed this to "the increase in selling, general, and istrative expenses and cost of goods sold in the Trading Card and Game Distribution Segment of our business, coupled with decreased licensing and broadcast revenues." However, he said he was confident that in the last quarter of the year, the company will return to profitability, and that the outlook for 2009 will be positive as sales and licensing revenue related to Chaotic, franchise, and now holds the licensing, broadcast, and merchandise rights to it through 2015.