Grom Social’s Top Draw Animation Subsidiary Ramps Up Production as Demand for Premium Content Grows in Post-Pandemic World
Grom Social Enterprises, Inc. (NASDAQ:GROM) announced that its subsidiary, Top Draw Animation, is increasing production in response to rising demand for animated content as the entertainment industry reopens. Following a 45% increase in revenues and 58% increase in gross profits in Q1 compared to last year, Top Draw plans to utilize its unused production capacity in the second half of 2021. The company has also reinstated its animators training program to support production growth. CEO Darren Marks emphasized the potential for meaningful revenue opportunities from their growing suite of services and original content.
- Q1 revenues increased by 45% compared to last year.
- Gross profits rose by 58% year-over-year.
- Top Draw Animation is increasing production to meet rising demand.
- Unused production capacity available for new and ongoing projects.
- Company faces risks from significant expenses in expanding service lines.
- No assurance of achieving profitability due to market conditions.
Slate of Projects from Global Entertainment Brands Entrust Top Draw Animation with their Most Iconic and Beloved Intellectual Properties
Boca Raton, FL, June 18, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Grom Social Enterprises, Inc. (NASDAQ:GROM), the emerging entertainment and social media company for kids and families, today announced that its wholly-owned subsidiary, Top Draw Animation, is ramping up production at its state-of-the-art animation studio in the Philippines to address the growing demand for the animated content it produces on behalf of several leading global entertainment companies. Additionally, as the entertainment industry reopens and the global pandemic slows, Top Draw has reinstated its animators training program – suspended during the crisis – to cultivate the next generation of animation pros and meet the increase in animation production.
Top Draw Animation is a centerpiece of Grom Social Enterprises, Inc., which also operates: Grom Social, a safe social media app for kids under 13; Grom Educational, a supplier of web filtering solutions; and Curiosity Ink Media, a producer and developer of original kid-friendly content, which Grom recently entered into an agreement to acquire. Top Draw Animation continues its upward climb after its parent company posted Q-1 revenues and gross profits up
Top Draw is a leading supplier of premium animation seen all over the world and programming information for the content it produces is shared only by its clients. For Top Draw, unused production capacity remains for the second half of 2021, which Grom expects it to fulfill with the renewal of existing projects/series, as well as new animation assignments. The renewed demand for animation production signifies the return to normalcy following months of slowed-down content production and orders.
“Top Draw’s commitment to delivering top-shelf production for audiences everywhere is reflected in both our first quarter growth and the increasing demand for premium animation, which our clients heavily rely upon to entertain families,” explains Russell Hicks, Top Draw’s newly installed President and Nickelodeon veteran. “Top Draw couldn’t be happier to bring our state-of-the-art studio back into full swing and deliver top shelf content which brings much needed joy to audiences everywhere.”
Darren Marks, CEO of Grom, adds, “The combination of new Grom executives, re-energized animation production, growing demand for safe social media for kids, requisite educational web-filtering and the influx of original IP from Curiosity Ink Media, make Grom Social Enterprises perfectly poised to be an important pipeline for escapist, brand-safe entertainment for the whole family. Collectively and individually, these assets serve as a gateway to meaningful revenue opportunities and attractive gross margins to deliver long-term, sustainable value for our shareholders.”
About Top Draw Animation, Inc.
TDA is an award-winning producer of top-quality 2D animation for television markets around the world and for leading companies such as Disney Television Animation, DreamWorks Television and Nickelodeon. The company employs over 400 artists in its 37,000 square foot, state-of-the-art studio in Manila, the Philippines and has accumulated an impressive portfolio of TV animation totaling more than 2,000 half hours. For more information please visit our website at www.topdrawanimation.com
About Grom Social Enterprises, Inc.
Grom Social Enterprises, Inc. (OTCQB: GRMM) is a leading social media platform and original content provider of entertainment for children under 13 years of age; providing safe and secure digital environments for kids that can be monitored by their parents or guardians. The Company has several operating subsidiaries, including Grom Social, which delivers its content through mobile and desktop environments (web portal and apps) that entertain children, let them interact with friends, access relevant news, and play proprietary games, while teaching them about being a good digital citizen. The Company owns and operates Top Draw Animation, Inc., which produces award-winning animation content for some of the largest international media companies in the world. Grom Social Enterprises also includes Grom Educational Services, which has provided web filtering services for K-12 schools, government and private business. For more information, please visit gromsocial.com.
Safe Harbor Statement
This press release may contain forward-looking statements about Grom Social Enterprises activities that are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues and any payment of dividends on our common stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods, and other risks set forth in the Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors. Among other matters, the Company may not be able to sustain growth or achieve profitability based upon many factors including, but not limited to general stock market conditions. We have incurred and will continue to incur significant expenses in the expansion of our existing and new service lines, noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long-term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations where we will be providing services, the impact of which cannot be predicted at this time. All forward-looking statements speak only as of the date of this press release. We undertake no obligation to update any forward-looking statements or other information contained herein. Stockholders and potential investors should not place undue reliance on these forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in or suggested by the forward-looking statements in this report are reasonable, we cannot assure stockholders and potential investors that these plans, intentions or expectations will be achieved. Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise.
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