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The company with a large stake in Chaotic, the 4Kids TV Network, has turned a massive loss for it’s Q2 reports according to some news sources. A $13.8million loss has been reported as the final figure of the quarter – a figure which is truly staggering when the company only made $4.4 million sales in the same time period.
Extenuating circumstances
It seem’s 4Kids has been quick to blame a number of exceptional circumstances for this loss. Firstly it points out that over half the loss ($7.25 million) was due to a loss made in the sale of an Auction rate security – something that would usually have been a safe bet if it wasn’t for the volatile financial market.
Chaotic Sales
Blame has also been placed on Chaotic. A change in how they charge retailers and distributers for the products of our favorite TCG means that they have not recieved income that they would usually have done. Because they have moved the price model to a ‘pay on scan’ system they are yet to see monies returned for the $2.6 million worth of Chaotic products they have shipped in that time period.
The good news is that 4Kids CEO, Al Khan, said that sales of products of the Chaotic TCG had almost doubled since the Cartoon Network started syndicating episodes.
From what I can see they are disturbing figures but the Auction rate security sale will be a one off and losses are happening all over the industry so we shouldn’t be too worried. What will be interesting is seeing how the sales of the TCG are going once profits from the new sales model start coming in, and seeing if the effect of the Cartoon Network will continue or level/drop off.
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Tags: 4kids, Chaotic News, chaotic profits, chaotic tcg