Vancouver: A lackluster California market continues to throw cold water on what would otherwise be a stellar financial year for Rainmaker Entertainment Group. The Vancouver company is showing strong growth from its home-base operations, but the l.a. division is flat.
For the quarter ended Sept. 30, revenue increased 33% to $9.2 million from $6.9 million for the same period last year. However, earnings dropped 45% to $550,000 (or four cents per share).
The Vancouver digital visual effects division continues to be a major contributor to revenues, and in fact, seems to be carrying the company at the moment.
During the quarter, it handled the big-budget, shot-in-Vancouver mow Max Q (premiered on abc Thursday, Nov. 19), which indicates the size of project Rainmaker is able to handle, though significant fees flowed through to subcontractors.
In the most recent three months, the l.a. facility completed visual effects assignments on four features, including Warner’s Soldier and Jack Frost, Paramount’s A Simple Plan and Disney’s Mumford.
The digital post and transfer division is up 7% in the quarter to $2.9 million in revenue, while new media recorded revenues of $538,000.
The third quarter is also the first report to include the acquisition of Vancouver production company Pacific Motion Pictures, which generated production services and distribution revenue of $258,000, derived from the licensing of a pair of newly released Hallmark Entertainment television movies to cbc.
Rainmaker’s year-to-date tallies for the nine months ended Sept. 30 show that company revenue has increased 19% to $22 million from $18.5 million for the same period last year. The company’s net earnings for the nine-month period dropped to $1.1 million (nine cents per share) from $2.4 million (20 cents per share). Ian Edwards