Paramount Q3 Profit Declines 13%6 Aug, 2015 By: Erik Gruenwedel
Paramount Pictures Aug. 6 reported operating income of $48 million, which was down 13% from operating income of $55 million during the previous-year period. Revenue plummeted 44% to $479 million.
The studio, which includes Paramount Home Media Distribution, said revenue declined primarily due to a 92% drop in theatrical revenue in regards to the timing of the summer box office.
Indeed, Paramount did not have a single theatrical release in the quarter.
Specifically, Transformers: Age of Extinction, which grossed $1.1 billion at the 2014 global box office, was released in the prior-year third quarter. Comparatively, 2015 tentpole titles Terminator: Genisys and Mission: Impossible — Rogue Nation were released in the current fourth quarter.
Genisys, which brought back Arnold Schwarzenegger to the franchise, has generated $318 million globally since its July 1 release. Rogue Nation, with Tom Cruise, has generated more than $134 million globally in the first week following its July 31 release.
"Both of these films open in China in the next few weeks — the first foreign titles to play in that market since mid-June," Viacom CEO Philippe Dauman said on the fiscal call.
Paramount plans to release 15 theatrical titles in 2016.
Global home entertainment revenue fell 30% to $199 million, while ancillary revenue dropped 43% largely due to the sale of select distribution rights during the previous-year period.
Top home video release Interstellar has generated $32.2 million in disc sales since its March 31 release. The SpongeBob Movie: Sponge Out of Water has sold more than $21 million worth of discs since its June 2 release, according to The-Numbers.com. Other releases included Selma ($5.6 million) and The Gambler ($4.7 million).
By comparison, top home video releases in the previous-year period included Anchorman 2: The Legend Continues, Paranormal Activity: The Marked Ones, and Jack Ryan: Shadow Recruit.
The drop in theatrical revenue contributed to a 11% decline in revenue to $3 billion for parent Viacom, from $3.4 billion a year ago.