As a publicly traded company, IDW Media Holdings reports its earnings, or in this case, losses to the public. IDW’s Q4 2019 financial report was released last week and things aren’t looking too hot. IDW Media Holdings lost $26.4 million in 2019 as a whole. The comic book branch IDW Publishing lost $5.2 million in 2019. Revenue from the comic book market was down from 2018 to $20.1 million. IDW Entertainment, which handles TV and movies, lost $19.8 million in 2019.
IDW Media Holdings Chairman and CEO Howard Jonas was optimistic, stating that they’re looking at listing the company on a national stock exchange to boost investment.
With our improving financial and operational outlook, we are exploring listing IDW on a national stock exchange to enhance our visibility, increase liquidity in the market for our stock, and broaden our shareholder base. In conjunction with the up-list, we intend to raise additional growth capital to further strengthen our balance sheet and to pursue the abundant growth opportunities afforded by the intensifying competition among streaming services for original content.
Jonas projects that the company will be profitable come 2021.
In the fourth quarter of fiscal 2019, revenue was boosted by delivery of ‘V Wars’ and the majority of the ‘October Faction” episodes to Netflix, while the legacy production finance agreements utilized for these shows and production cost overages resulted in significant losses. The remaining impact of these legacy deals will be recognized in the first quarter fiscal 2020 results reflecting the delivery of the balance of ‘October Faction’ episodes to Netflix.
Looking ahead, IDW Entertainment is delivering season one of ‘Locke & Key’ to Netflix and we expect that it will contribute to our bottom line in the first half of fiscal 2020.
IDW is on track to attain steadily profitable operations in 2021 and beyond with prospective upside from potential renewals of IDW Entertainment’s current line-up, from our previously announced deal with Cineflix and SyFy for distribution of ‘Wynonna Earp’, from new deals that the IDW Entertainment team is developing from its IP pipeline and from our focus on complete franchise monetization through merchandising, games, video on demand, and other fandom-driven channels. We are working to ensure that all divisions of IDW operate profitably by fiscal 2021.
2021 can’t come fast enough for the company.