The following is a summary of the Thunderbird Entertainment Group Inc. (THBRF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Thunderbird Entertainment's Q2 revenue decreased from $47.9 million to $44.5 million. For the first six months of the fiscal year, it dropped from $91.7 million to $78.1 million.
The company returned to profitability in Q2 2024, with net income of $0.6 million, which is an improvement of $0.9 million from the previous year.
Free cash flow declined from $7.8 million to $0.4 million for the three months ended December 31 and from $12.2 million to negative $2 million for the six months ended December 31, primarily due to repayment of interim production financing, share repurchases, and investments in animation content creation.
Adjusted EBITDA decreased from $4.3 million to $3.9 million for Q2, and from $8.4 million to $6.4 million for the first six months of the fiscal year.
Business Progress:
The company expects over 20% growth in adjusted EBITDA for fiscal 2024, despite a slower-than-expected revenue recovery in the content creation market.
Revenue expectations for the remainder of the fiscal year are to remain flat year-over-year, but service revenue is expected to moderately increase.
Thunderbird has implemented cost reduction activities aiming to save over $3 million in overall cost reductions for fiscal 2024.
An additional 29 hours of Intellectual Property (IP) is expected to be delivered in the second half of the fiscal year, making a total IP delivery of 53 hours for the year.
Thunderbird expects positive free cash flow by the end of the fiscal year as it returns to regular rhythm pre-strikes, with a focus on high-quality content production.
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