11:31 AM EDT, 05/23/2024 (MT Newswires) -- Thunderbird Entertainment Group ( THBRF ) on Thursday said it swung to profit in its fiscal third quarter despite a slower than anticipated recovery in the content creation market.

The company reported a profit of $5,000, or nil per share, in the quarter ended March 31, compared with a loss of $2.3 million, or $0.05 per share, in the year-prior quarter.

Revenue fell 5.1% to $35.4 million from $37.3 million a year earlier.

Adjusted EBITDA fell to $3.3 million versus $3.7 million a year ago. Free cash flow for the quarter was $13.4 million, compared with a deficit of $15.8 million a year earlier.

"Throughout the ongoing fiscal year, the company, alongside the rest of the media industry, has encountered a slower-than-anticipated recovery in the content creation market, largely influenced by major buyers' adoption of cost-cutting measures and reduced greenlighting activities," it said in a release.

The company said one ongoing animation production in the current quarter will result in about 30% additional revenue over the term of this project. This expansion represents additional secured revenue for the company for fiscal years 2025 and 2026 and will positively impact results for both years, respectively.

On a short-term basis, the financial impact of this expansion is a slight reduction in expected revenue from that production during the fourth quarter.

Thunderbird now expects total revenue to be about 3% less than the previous year. The company expects adjusted EBITDA growth for fiscal 2024 to be above 20%.

The company's shares were last seen down $0.05 to $1.70 on the TSX Venture Exchange.

Price: 1.70, Change: -0.05, Percent Change: -2.86