Profits at Oscar-nominated Kilkenny animation studio increase to €1.33m

Gordon Deegan

Pre-tax profits at the five-time Oscar nominated animation studios, Cartoon Saloon increased by 45 per cent in 2023 to €1.33 million.

New consolidated accounts show that revenues at the Kilkenny-based Cartoon Saloon Ltd recorded an increase in profits despite revenues decreasing by 22 per cent from €15.1 million to €11.72 million.

Last year, Cartoon Saloon celebrated its 25th anniversary in business and staged events throughout the year to mark the milestone.

The pre-tax profits of €1.33 million follow pre-tax profits of €915,481 in 2022.

In recent years, the company has benefited from the boom in content demand from streaming services such as Netflix, Apple+, and Disney+.

The directors note however that like other companies in the animation industry, the company faces risks and uncertainties which mostly result from uncertainty in demand for a particular product as well as the ability to compete successfully with other producers in the market.

The directors state that “they are confident that the company has the ability to compete successfully and grow its market share”.

As the revenues contracted in 2023, numbers employed reduced from 185 to 145 made up of 142 in operations and three in management.

Staff costs reduced from €9.32 million to €7.7 million.

The company’s revenues were made up of €11.44 million in animation services and €280,988 in sales of merchandise.

The group recorded an operating profit of €1.16 million as it also benefited from €252,000 from the share of profits in associated companies.

The profits were also hit by the loss of €229,726 in investment income offset by gains of €162,421.

The group recorded post tax profits of €1.12 million after incurring a corporation tax charge of €201,073.

Accumulated profits at the company totalled €7.18 million while the company’s cash fund increased from €1.08 million to €3.2 million.

The directors did not recommend the payment of a dividend.

The profit takes account of non-cash depreciation costs of €208,416.

The directors are listed as Paul Young, Tomm Moore and Nora Twomey.

Directors’ pay totalled €571,310 made up of €270,000 in remuneration and €301,310 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’.