IDT, Fox Join Forces9 Jun, 2005 By: Jessica Wolf
IDT Corporation, parent company of Anchor Bay Entertainment, has inked a theatrical distribution partnership with Twentieth Century Fox, announcing the deal on the heels of its third-quarter financial statements.
IDT announced third quarter fiscal revenues for the period ended April 30 increased 7.3 percent over last year to $606.7 million, but declined 1.9 percent over the second quarter. The company posted an overall net loss of $14.3 million for the 2005 third quarter, compared to a net loss of $76.8 million in the 2004 fiscal third.
The company also announced revenues were up 15 percent for the first nine months of the fiscal year, thanks mostly to the company's telecom and entertainment divisions.
Income for the IDT Entertainment, which includes Anchor Bay, was $3.1 million for the three-month period, up from $2.4 million the previous year. IDT's Telecom division income hit $12.1 million, a $6 million drop from the comparable 2004 third quarter.
The performance of the entertainment division was mainly driven by the home video distribution business, company executives said during the quarterly earnings call. IDT executives also said that broadcast and theatrical revenue for the U.S. and international markets and foreign home video deals will bring in another $10 million to $11 million over the next two quarters for the company. Anchor Bay retains all domestic home entertainment distribution rights.
IDT specifically singled out to strong retail sales of Anchor Bay TV DVD releases in the third-quarter and revenue from selling Showtime Networks the cable broadcast rights to IDT production company New Arc Entertainment's “Masters of Horror” series, which will hit DVD in the fourth quarter of this year.
The theatrical distribution deal between Fox and IDT is a two-year, multi-picture deal that will provide theatrical releases for CG-animated films in the works at IDT Entertainment production company arms.
IDT Entertainment's subsidiaries include animation studios Film Roman, Mainframe Entertainment, and DKP Studios, live-action production company New Arc, as well as distribution companies Anchor Bay Entertainment, Manga Entertainment and IDT Entertainment Sales.
"IDT Entertainment has taken an important step towards its goal of producing and arranging distribution for its quality feature films," Jim Courter, IDT's CEO said, touting the Fox distribution deal.