Paramount Ups Q4 Home Entertainment Revenue 16%29 Jan, 2015 By: Erik Gruenwedel
Paramount Pictures Jan. 29 reported a 6% increase in fourth-quarter (ended Dec. 31, 2014) revenue to $720 million from revenue of $681 million during the previous-year period.
The revenue increase was driven in part by Paramount Home Media Distribution releases Teenage Mutant Ninja Turtles, Transformers: Age of Extinction and Hercules — the latter with Dwayne Johnson. Indeed, the unit posted a 16% year-over-year increase in revenue.
"We expect growth and profits to be weighted to the back half of the fiscal year as the studio benefits from its summer theatrical releases as well as the availability of titles in the pay-TV and home entertainment marketplaces," COO Thomas Dooley said on the fiscal call.
Notable fourth-quarter box office release Interstellar from director Christopher Nolan, which garnered five technology-related Oscar nominations, has sold more than $671 million in ticket sales, including $186 million domestically.
Paramount lowered its operating loss 19% to $60 million from $74 million a year ago as quarterly revenue helped offset increases in film and distribution expense.
Analyst Michael Nathanson with MoffettNathanson, who had projected a $70 million operating loss for the studio, said the home entertainment result led to “easy compares” due to the fact there were no significant releases in the prior-year quarter.
Nathanson said parent Viacom has bigger concerns regarding declines in cable advertising and ratings.
“As we wrote in our quarter preview, it is clear that trends across [the TV market] remain challenging,” the analyst wrote in a Jan. 29 note.