Wizard World Inc. reported a net loss of $1,282,078 for the first quarter of 2017, with their remaining working capital down to $3,522,657. This comes after acquired outside financing from Bristol Investment Fund, an outside company controlled by Wizard World’s board chairman, Paul L. Kessler. Looking to the future however, Wizard World is researching new locations for its long-running convention franchise, on top of the 16 annual conventions it currently runs as of its 2017 schedule.
Revenue from its primary line of business, conventions, was down $1,545,702 from Q1 2017, with the company attributing the drop to “increased investment in the programming and convention center build-out” and running one less convention in those two periods – three in 2017, four in 2016; that is despite the average revenue per event dropping $99,096 from 2016 to 2017. Percentage-wise, that drops the gross profits down from 41% to 9%.
The ConBox project continues to show diminishing returns, with Q1 2017 revenue being $74,199 – compared to $348,182 in Q1 2016. The decrease there is said to be due to the new management team’s decision to primarily focus on driving the convention business forward.”
Wizard World’s new management team has made strides, however, in cutting the operating expenses. Q1 2017’s numbers were at $1,663,824, down from Q1 2016’s $2,076,336. That belt-tightening is chalked up to a decrease in the number of employees, as well as a reduction in officer compensation, service fees, travel, and web development.