The Navarre Corporation reported its 4th Quarter and fiscal 2008 year-end results and improved its performance from a loss of $2.23 million in fiscal 2007 to a profit of $686,000 in 2008. This was due largely to the performance of its wholly-owned subsidiary FUNimation, which posted “double digit sales growth and more than doubled its operating profits during the fiscal 2008 year.”  FUNimation’s strong showing was in stark contrast to BCI, another Navarre subsidiary.  Navarre’s CEO Cary Deacon described the performance of BCI Home Entertainment, which produces and distributes DVDs, many of which are based on older U.S. cartoon and TV properties, as a “major disappointment.”

Speaking in a conference call with industry analysts, Deacon asserted that FUNimation had “gained a tremendous amount of market share” in the most recent quarter thanks in part to the shutdown of Geneon and reduced activity by some of the company’s other competitors.  Deacon also said that “consolidation opportunities” remain present, but wouldn’t comment further on any possible acquisitions in the anime arena.  According to Deacon, one result of the withdrawal of Geneon from the market has been that “our catalog uptake at retail has risen tremendously.”  FUNimation's bestselling releases of 2008 so far have been catalog titles, namely the Dragon Ball Z Season Sets.

Another effect has been a lowering in the cost of acquiring new licenses from Japan.  Deacon noted that “a year-and-half ago prices were in the stratosphere, but they have slowly declined and we are seeing some of the best pricing on content in the last two years.”  Deacon sees FUNimation’s strong performance continuing in 2009, thanks in part to the release of a number of strong titles in the current quarter.