The current boom in demand for content from streaming services helped revenues surge by €2 million to €13.4 million at five-time Oscar nominated animation studios, Cartoon Saloon in 2021.
New consolidated accounts show that revenues at the Kilkenny based Cartoon Saloon Ltd increased by €2m or 17.5% from €11.4m to €13.4m in 2021.
During the same period pre-tax profits declined by 21% from €2m to €1.58m and the main factor behind the drop in pre-tax profits was investment income declining by €262,969 from €462,261 in 2020 to €197,292 in 2021.
A €1.17m increase in staff costs to €7.5m also contributed to a €297,000 decline in operating profits from €1.297m in 2020 to €1m in 2021.
The business benefited from a €420,000 share in profit in associated businesses in 2021.
The studio today has a crew of over 200 artists and technicians in production and project development and directors said that the business "has continued to achieve steady growth in recent years".
The directors said that the €13.4m in revenues achieved allowed the firm "to generate significant profits in a challenging industry".
The largest contributor to Cartoon Saloon Ltd's revenues was work on Cartoon Saloon co-founder and director, the Nora Twomey-directed My Father's Dragon work for Netflix.
The accounts show that Cartoon Saloon Ltd provided services to the value of €7.8m to connected firm, My Father’s Dragon Productions in 2021 and this followed €5.82m under the same heading in 2020.
In total, the Cartoon Saloon provided services to the value of €12m to connected companies in 2021.
The directors state that "they are confident that the group has the ability to compete successfully and grow its market share and continued to streamline cost base as appropriate to ensure that it remains competitive".
A breakdown of revenues shows that Cartoon Saloon generated €13.06m from animation services, €280,226 from merchandise sales and €55,229 from royalty/rights income.
Co-founding directors, Paul Young, Tomm Moore and Nora Twomey invoiced Cartoon Saloon for subcontracted work to the value of €344,220 during 2021.
The accounts show that a large proportion of costs relate to freelance consultants who shared €2.34m in 2021 compared to €642,955 under that heading in 2020.
The amount Cartoon Saloon paid out in charity contributions more than tripled to €61,006 in 2021.
The studios in 2021 landed its 5th Oscar nomination for its hand-drawn film, Wolfwalkers which is currently available on Apple+ TV.
In 2021, the firm received a boost when WarnerMedia Kids & Family greenlit 'Silly Sundays’ for its new Cartoonito preschool block on HBO Max and Cartoon Network.
The Cartoon Saloon show is due to premiere this year.
Numbers employed by Cartoon Saloon increased from 144 to 165 in 2021 as staff costs rose from €6.33m to €7.5m.
Accumulated profits at the company totalled €5.48m while the company’s cash fund declined from €3.02m to €1.87m.
The profit takes account of non-cash depreciation costs of €244,721.
The studios have previously received Oscar nominations for 'Late Afternoon’, ‘The Breadwinner’, ‘Song of the Sea’, and ‘The Secret of Kells’.
Reporting by Gordon Deegan
