The current boom in demand for content from streaming services helped revenues surge by 20% to €16.03m at five-time Oscar nominated animation studios, Cartoon Saloon in 2022.
New consolidated accounts show that revenues at the Kilkenny based Cartoon Saloon Ltd increased by €2.6m from €13.4m to €16.03m in 2022.
During the same period pre-tax profits declined by 42% from €1.58m to €915,481 and the main factor behind the drop in profits was expansion costs.
Staff numbers increased by 20 to 185 with the result that staff costs rose by €1.8m to €9.32m
Profits were also hit as investment income declined from €420,000 in 2021 to €245,000 in 2022.
The profits were also hit by the group share of an associate's losses which totalled €194,061 and net interest payments of €57,596.
The group recorded post tax profits of €702,326 after incurring a corporation tax charge of €213,155.
The accounts show that a large contributor to the group'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 €2.6m to connected firm, My Father’s Dragon Productions in 2022 and this followed €7.8m under the same heading in 2021.
In total, the Cartoon Saloon provided services to the value of €10.9m to connected companies in 2022 that also include €4.3m to Minotaur Productions DAC and €3.2m to Tito Productions DAC..
The directors state that "they are confident that the group has the ability to compete successfully and grow its market share and continues to streamline its cost base as appropriate to ensure that it remains competitive".
A breakdown of revenues shows that Cartoon Saloon generated €15.67m from animation services, €273,534 from merchandise sales and €85,166 from royalty/rights income.
Co-founding directors, Paul Young, Tomm Moore and Nora Twomey invoiced Cartoon Saloon for subcontracted work to the value of €338,270 during 2022.
The accounts show that a large proportion of costs relate to freelance consultants who shared €1.84m in 2022 compared to €2.34m under that heading in 2021.
Accumulated profits at the company totalled €6.15m while the company’s cash fund declined from €1.87m to €1.08m.
The profit takes account of non-cash depreciation costs of €244,193. Directors’ pay increased sharply to €761,877 made up of €270,000 in remuneration and €491,877 in pension contributions.
The studios have previously received Oscar nominations for 'Wolfwalkers’ 'Late Afternoon’, ‘The Breadwinner’, ‘Song of the Sea’, and ‘The Secret of Kells’.
Reporting by Gordon Deegan
