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Thunderbird Entertainment generating record revenue as demand for content skyrockets

Snapshot

The Vancouver-based global multi-platform entertainment company produces award-winning scripted, unscripted and animated programming for the world’s leading digital platforms

Thunderbird Entertainment Group Inc -

Quick facts: Thunderbird Entertainment Group Inc

Price: 3.9 CAD

TSX-V:TBRD
Market: TSX-V
Market Cap: $187.92 m
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  • Produces award-winning, high-quality content with a track record of robust viewership
  • 18 television programs currently in various stages of production
  • A repeatable and scalable business model with proven earnings history
  • Experienced management team in the media and entertainment sector

What Thunderbird Entertainment does:

Thunderbird Entertainment Group (CVE:TBRD) (OTCMKTS:THBRF) is building global entertainment brands for the world’s biggest broadcasters and streaming giants.

The Vancouver-based global multi-platform entertainment company produces award-winning scripted, unscripted and animated programming for the world’s leading digital platforms, as well as for Canadian and international broadcasters such as Netflix, Amazon Prime and Disney.

Its underlying ethos is to make the world a better place, according to its CEO Jennifer Twiner McCarron.

The company has three divisions: Kids and Family, Factual,and Scripted. Thunderbird also has a division based in the United Kingdom dedicated to establishing partnerships with production companies to develop the company’s intellectual property.

The group is behind popular titles such as ‘The Last Kids on Earth,’ ‘$ave My Reno,’ ‘Highway Thru Hell’ and the award-winning CBC sitcom ‘Kim’s Convenience.’

Thunderbird’s executive team and board of directors reads like a who’s who of the Canadian entertainment industry. CEO Twiner McCarron is a creative at heart, an Emmy-award winner and one of the leading women in the animation sector.

The company's board is stacked with names like film mogul and philanthropist Frank Giustra, noted investor Frank Holmes and Paul Sparkes, a former executive at CTVglobemedia (now Bell Media).

With around 47 million shares outstanding and a C$59 million market capitalization, the Canadian company is poised to take on entertainment industry heavyweights like Lionsgate and Entertainment One as consumers search for new content.

How is it doing:

In February, Thunderbird Entertainment reported financial results for its fiscal second quarter ended December 31, 2020, revealing revenue and earnings that roughly doubled year-over-year. 

The media company posted revenue of C$28 million and C$47.7 million, respectively, for the three and six month periods ended December 31, representing increases of 98% and 56% year-over-year. Its adjusted EBITDA was C$5.2 million and C$10 million over the same periods, compared to C$2 million and C$5.7 million at the same stages in fiscal 2020.

Thunderbird attributed the increases to major growth within its Kids and Family Division, Atomic Cartoons. During the quarter, the division was in various stages of production on 13 animated series and two feature-length animated productions, including co-producing Mighty Express with Spin Master for Netflix, LEGO Star Wars Holiday Special for Disney+ and Molly of Denali for GBH/ PBS KIDS.

Earlier in the year, the company announced the creation of a new Global Distribution and Consumer Products Division, with industry veteran Richard Goldsmith joining Thunderbird and Atomic Cartoons, the company’s Kids and Family Division, to lead the new venture

The company said that in this newly-created role as president of Global Distribution and Consumer Products, Goldsmith will oversee worldwide content distribution and the development of innovative consumer products and experiences that expand and enrich audience engagement across all Thunderbird properties.

As well, in late 2020, Thunderbird Entertainment said its Great Pacific Media division is developing a premium scripted drama series based on the father of the American Space Program and former Nazi scientist Wernher von Braun.

Entitled "Von Braun: Dreamer of Space, Engineer of War," the series works off Canadian author Michael Neufeld’s definitive biography about von Braun - a man who became an American hero yet was also one of the most controversial figures ever to join NASA. 

What the broker says:

In a recent note to clients, Canaccord Genuity analysts upped its price target to $5.00 from S3.25 and reiterated a Buy rating following the company’s fiscal second-quarter results.

Analysts Aravinda Galappatthige and Matthew Lee wrote that the media company’s C$28 million in quarterly revenue was “well ahead” of its own C$19.3 million forecast — the fourth straight quarter Thunderbird has beaten expectations and its largest margin yet. EPS was C$0.03, ahead of Canaccord’s projected $C0.

“Thunderbird has a very deep pipeline,” the analysts wrote. “In our view, the results over the last four quarters highlight the solid underlying funnel of production opportunities at TBRD, and the company’s growing profile in the industry. ... We believe the company is seeing particular success with some of its key kids franchises including Last Kids on Earth (for Netflix), Hello Ninja (Netflix) as well as some of the service work being done on The Lego Star Wars specials for Disney+ and Trolls: Trollstopia for Peacock.”

Thunderbird is also set up well for potential acquisitions, the firm wrote.

“The company’s net cash position stood at $18 million as of Q2/21, which we believe could be used toward making acquisitions to spur further growth,” the analysts wrote. “In particular, we believe the company is looking at the potential for international expansion, which we view as prudent given the demand from streaming platforms.”

Inflection points:

  • Atomic developing a video game based on The Last Kids On Earth in conjunction with Outright Games, scheduled to be released in 2021
  • Continued build-out of content library across all three verticals
  • Invested funds in developing 25 additional titles

What the boss says:

“We’re really lucky to be working in content,” Thunderbird CEO Jennifer Twiner McCarron recently told Proactive. “People need it more than ever - it’s a healthy escape. The company is doing such high work in factual and kid’s content. With all of the new players coming online and places to sell our content, it’s never been a better time to be in this business.”

Contact Sean at sean@proactiveinvestors.com  

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Thunderbird Entertainment creates new Global Distribution and Consumer...

Thunderbird Entertainment (CVE: TBRD-OTC: THBRF) Chief Creative Officer, Matthew Berkowitz and Richard Goldsmith, the new President, Global Distribution and Consumer Products joined Steve Darling from Proactive to talk about this new division. Berkowitz telling Proactive this new...

on 12/1/21

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