LeapFrog Inks Deal with Lions Gate - Analyst Blog
14 Novembro 2012 - 2:10PM
Zacks
Educational entertainment leader, LeapFrog Enterprises
Inc. (LF), recently penned a new multi-year agreement with
Lions Gate Entertainment Corp. (LGF) to develop,
produce and distribute four brand new animated DVD and digital
movies. The movies, featuring updated characters, new adventures
and new subject learning syllabus, are slated to be released in
early 2014.
Lions Gate is a film studio engaged in the production and
distribution of motion pictures for theater and straight-to-video
release and also television programming for cable and broadcast
networks. The company has a strong track record of producing small
and mid-budget specialty films.
The partnership is not new to LeapFrog. The company joined forces
with Lions Gate way back in 2008. Since then, the companies have
released 12 animated DVDs that featured well-liked LeapFrog
characters such as Scout & Friends, Leap, Lily and Tad. The new
treaty portrays their commitment to children for entertaining yet
educational movies which are apt for their age.
With the signing of the new agreement, LeapFrog has extended the
distribution rights of Lions Gate on its movie catalog. Lions Gate
now possesses the worldwide distribution rights to both physical
and digital content from the new movies. In addition, LeapFrog has
preserved its rights to distribute the new content on its own
proprietary digital platforms.
As a matter of fact, the new agreement immediately follows
LeapFrog’s recent announcement of two new programs – Magnificent
Museum of Opposite Words, and Adventures in Shapeville Park. Both
are due to be launched in January 2013.
We remain impressed with LeapFrog’s core strategy to boost its
educational entertainment platform. Earlier this month the
company added Barbie to its award winning learning platform through
the collaboration with the world's largest toy company –
Mattel Inc. (MAT). Till date, the company’s strong
home entertainment section has sold roughly nine million units.
Emeryville, California-based LeapFrog recently reported earnings of
60 cents per share in the third quarter of 2012, which breezed past
the Zacks Consensus Estimate of 41 cents. With this, the company
achieved the record of nine consecutive quarters of higher
earnings. At the end of the quarter, LeapFrog's products were
available in over 45 countries and used by teachers in around
100,000 U.S. classrooms.
We are maintaining our long-term Outperform recommendation on
LeapFrog. It carries a short term Zacks #2 Rank (Buy).
LEAPFROG ENTRPS (LF): Free Stock Analysis Report
LIONS GATE ETMT (LGF): Free Stock Analysis Report
MATTEL INC (MAT): Free Stock Analysis Report
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