Vancouver animation studio Rainmaker Entertainment Inc. (TSX:RNK) has reported decreased revenue and significant losses from operations in 2011.
Rainmaker’s loss from operations was $2,844,956, an increase of $1,988,012 compared with 2010.
The company’s revenue fell $644,859 to $18,827,454 in 2011.
However, earnings for the year were $3,347,738, an improvement of $2,416,600 compared with 2010.
A significant proportion of production capacity at the studio in 2011 was tied to the feature film Escape from Planet Earth, according to a press release from the company.
The project is scheduled to end in the second quarter with only minor services provided for the remainder of the year. The revenue from the film in 2011 was $8,298,480 and is anticipated to be approximately 50% of that for 2012.
“The company needs to generate additional revenue from its feature film work-for-hire business. In the meantime, [it] is actively reducing operating costs,” the press release stated.
“If the company is not able to accomplish these goals, further losses from operations are anticipated in 2012. Management is working with its board of directors to improve company performance.”
