Paramount Q2 Operating Income Sinks30 Apr, 2015 By: Erik Gruenwedel
New “SpongeBob” movie not enough to raise studio results
Paramount Pictures April 30 reported second-quarter (ended March 31) operating income of $1 million, which was down 91% from operating income of $11 million during the previous-year period.
Revenue dropped 21% to $659 million due to declines in television license activity and a dearth of home entertainment releases. Theatrical revenue fell 10%.
Paramount Home Media Distribution saw revenue drop 25% to $193 million. Through six months, revenue is down 4% to $510 million.
Top home entertainment releases in the quarter included Top Five and Intersellar, compared with Jackass Presents: Bad Grandpa and The Wolf of Wall Street a year ago.
The studio initiated across-the-board cost-cutting measures, which included reduced staffing. Earlier in April, Bob Buchi, the studio’s EVP of worldwide marketing, was promoted to replace Dennis Maguire as president of Worldwide Home Media Distribution.
In February, Paramount Home Media Distribution announced that Universal Pictures Home Entertainment would handle international distribution for Paramount’s Blu-ray Discs and DVDs, beginning July 1 in the United Kingdom. Universal is assuming distribution of Paramount discs in other foreign territories over time. The agreement does not apply to domestic distribution.
The second quarter included revenue from Selma ($52 million) and The SpongeBob Movie: Sponge Out of Water, which has generated more than $310.7 million at the global box office since its Feb. 6 debut.
The movie will be released June 2 on disc for $52.99 for the 3D Blu-ray, Blu-ray/DVD/Digital Copy combo; $29.99 for the DVD only. The film will be available digitally May 19.
The studio has high hopes on summer sequels Terminator Genisys starring Arnold Schwarzenegger, and Tom Cruise actioner Mission: Impossible — Rogue Nation, among others.