HALIFAX — WildBrain Ltd. warns that its revenue will be negatively affected this year by YouTube’s recently introduced new rules for advertising aimed at children under age 13.
In the first few weeks of the company’s fiscal third quarter, its WildBrain Spark operation experienced a 40 per cent decline in revenue compared with the same period last year as YouTube’s new rules went into effect in January.
Prior to the change, WildBrain Spark’s revenue for the second quarter ended Dec. 31 had been up 21 per cent year-over-year, rising to $24.2 million, while views were up 36 per cent to more than 9.9 billion.
WildBrain’s overall second-quarter revenue was $122.1 million, up four per cent from $117.0 million a year earlier.
Its net loss was $2.3 million or two cents per share, compared with a year-earlier loss of $17.9 million or 13 cents per share.
This improved bottom line was partly due to a $22.4-million positive impact from unrealized foreign exchange gain and $5.7 million from higher gross margins.
This report by The Canadian Press was first published Feb. 13, 2020.
Companies in this story: (TSX:WILD)
The Canadian Press