After a turbulent few years marked by a stock market delisting and major downsizing in 2023, executives at IDW Media Holdings expressed hope that a turnaround is now underway. The remarks were made by CEO Davidi Jonas and CFO Andrew DeBaker during a conference call discussing results for the fiscal year ended October 31, 2024.
In the year, the company was able to reduce its net loss from $4.9 million in fiscal 2023 to $1.4 million, largely through cost cuts, including the departure of four executives in September. (Two more layoffs at the company were confirmed by the Beat several days after the conference call.) Overall, through layoffs and other measures, IDW cut its selling, general, and administrative costs by $2.3 million last year.
Total revenue was basically flat, slipping from $26.7 million to $26.5 million. IDW’s publishing segment, whose properties include the Top Shelf and IDW imprints, generated $26.4 million of the company’s overall revenue, down slightly from $26.6 million in fiscal 2023. Book sales increased by $781,000 in the year, while comics sales rose $386,000, offset by higher returns and a decrease in games revenue. Sales in the entertainment division, which in fiscal 2022 had sales over $10 million, had revenue of $91,000 and $64,000 in fiscal 2024 and 2023, respectively.
IDW generates sales in its entertainment division through development of its comics and graphic novels into films and streaming series. Though its annual report listed four works that are under development consideration, both executives cautioned against expecting a windfall from a new deal. Rather, Jonas and DeBaker said, immediate attention will be devoted to growing its comics and graphic novel business.
That business, however, is not without its challenges. The executives noted that it was still too early to say what the fallout from the Diamond Comic Distributors bankruptcy will be. The annual report did note, however, that IDW’s distributor and Diamond's largest creditor, Penguin Random House, had paid IDW for items ordered by Diamond.
PRH has told IDW that it does not know how much money it may be able to collect from Diamond, although it “informally indicated” to IDW that, according to the terms of the contract between the two parties, “the significant majority of such uncollected amounts will be debited by PRH from future payments from PRH to IDW.” At present, per the report, IDW cannot determine when or if PRH will debit any amounts against future payments, and it will work to minimize the impact of any lower payments "to the extent possible."
This article has been updated with further information.
