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Paramount Home Media Distribution Ups Q2 Revenue 29%

4 May, 2017 By: Erik Gruenwedel

Home entertainment continues to exhibit resilience in a streaming market as evidenced by Paramount Home Media Distribution reporting a 29% second-quarter (ended March 31) revenue increase to $198 million. The distributor generated $153 million in revenue during the previous-year period.

Domestic and international home entertainment revenue increased 23% and 49% respectively, despite a foreign exchange having a five-percentage-point unfavorable impact on international revenue.

Star Trek Beyond continues to deliver at retail since its Nov. 1, 2016, release, generating $1.5 million in revenue from 81,000 combined DVD and Blu-ray Disc units sold, according to The-Numbers.com.

Meanwhile, theatrical revenue rose 10% to $238 million, with revenue from current-quarter releases up 73% compared with releases from a year ago. Domestic theatrical revenue decreased 45%, while international theatrical revenues grew 98%, reflecting the strong international performance of xXx: Return of Xander Cage.

Licensing revenue increased 45% to $347 million in the quarter, primarily driven by Paramount Television production, as well as higher revenue from licensing arrangements with pay-television and SVOD distributors. Domestic licensing revenue grew 85%, while international licensing revenue increased 24%.

Ancillary revenue increased 149% to $112 million, primarily driven by the sale of a partial copyright interest in certain current-year releases related to a film slate financing arrangement. Domestic ancillary revenue increased 158% to $93 million, while international ancillary revenues increased 111% to $19 million.

Regardless, Paramount Pictures reported an adjusted operating loss of $66 million in the quarter compared with $136 million in the prior year quarter. The improvement principally reflected the various revenue increases, partially offset by higher operating expenses.

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