Paramount Posts $136 Million Q2 Loss28 Apr, 2016 By: Erik Gruenwedel
Home entertainment revenue falls $41 million
Paramount Pictures April 28 reported a second-quarter (ended March 31) operating loss of $136 million, compared with operating income of $1 million during the previous-year period. Revenue remained flat at $655 million. Global theatrical revenue increased 6% to $217 million, due largely to ticket sales from Daddy’s Home and The Big Short.
Worldwide revenue from Paramount Home Media Distribution declined $41 million, largely due to lower revenue from catalog releases and third-party distribution titles. Domestic revenue topped $153 million, which was down 21% from $193.7 million a year ago. Through the first six months of the fiscal year, home entertainment revenue is down 23% to $392 million, from $509 million.
In a statement, Philippe Dauman, CEO of Paramount corporate parent Viacom, said management continues to adapt to “industry consumption shifts” of entertainment — a reality that has prompted a minority sale effort for Paramount. Dauman said the sale of DreamWorks Animation to NBC Universal would help in closing a Paramount transaction, which he expects to occur by June.
“We are looking forward to upcoming blockbusters Teenage Mutant Ninja Turtles: Out of the Shadows and Star Trek Beyond this summer,” Dauman said.