A  significant bump in television revenue buoyed Boat Rocker Media’s second quarter results for fiscal 2023, despite reporting a net income loss for the period.

The Toronto-headquartered company reported total revenue earnings of $128.7 million for Q2, up 96.7% from $65.4 million in the same period in fiscal 2022. The majority of revenue earned in the quarter – $102 million – came from television revenue, up 178% year-over-year.

The increase was attributed to a variance in production deliverables, according to Boat Rocker’s financial reports. Whereas television revenue in Q2 2022 saw the delivery of 82 half-hours of unscripted content, Q2 2023 saw the delivery of two separate premium scripted dramas, accounting for the revenue surge. Boat Rocker’s Apple TV+ series Invasion (pictured) is set to launch its second season on Aug. 23.

Despite the revenue bump, Boat Rocker reported a net loss of $5.8 million for Q2 2023, compared to a net income of $4.6 million in the previous year’s Q2. It also reported a 33% decrease in adjusted EBITDA, coming to $5.4 million, which was attributed to a production-related adjustment in its financial reporting.

The revenue gains were slightly offset by decreases across Boat Rocker’s other segments – kids and family, and representation from its management company Untitled Entertainment.

Kids and family revenue saw a 2% dip in revenue for the quarter, coming to $18.7 million compared to $19.1 million in Q2 2022. The slight decrease was attributed to lower distribution sales during the quarter.

The company’s representation segment saw a 16% decrease year-over-year, coming to $8.1 million in Q2 2023 compared to $9.6 million in the previous period. The revenue loss was attributed to the timing of projects for Untitled’s clientele.

Boat Rocker CEO John Young addressed the impact of the dual WGA and SAG-AFTRA strikes in the U.S. on the company’s representation segment during a call with investors on Wednesday (Aug. 9).

Young acknowledged that while the actors’ strike will have a negative impact on the segment, clients will still bring in revenue through non-union work, including commercials and brand deals. He also noted that the outcome of the strikes may help the business, if the resulting deals include higher residuals and pay for clients.

Year-to-date overall revenue for Boat Rocker came to $208.5 million, up 85.7% year-over-year from $112.3 million. Adjusted EBITDA increased by 73.2% to hit $3.7 million between Q1 and Q2, compared to $2.1 million in 2022.

The company has predicted “modest adjusted EBITDA growth,” in its outlook for the remainder of the fiscal year, noting that prolonged strikes will impact television and representation revenues for 2023 and potentially 2024.

“Although the strikes make for a more challenging 2023, our diversified business, healthy balance sheet, and recently streamlined studio operations enable us to stay flexible, resilient, and an effective partner for content creators and buyers internationally,” said Young in a statement.

Image courtesy of Apple TV+