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Warner Increases Q2 Home Entertainment Revenue 38%

2 Aug, 2017 By: Erik Gruenwedel

Spurred by higher home entertainment revenue related to the retail release of The Lego Batman Movie and carryover from Fantastic Beasts and Where to Find Them, Warner Bros. Home Entertainment Aug. 2 reported second-quarter (ended June 30) revenue of $421 million, compared with revenue of $301 million during the previous-year period.

Specifically, revenue from sale of DVD/Blu-ray Disc and digital movies topped $343 million, up 55% from revenue of $221 million a year ago. Through the first half of the fiscal year, movie revenue reached $711 million, up 31% from $542 million during the previous-year period.

Fantastic Beasts currently ranks as the 5th top-selling packaged-media release in 2017 with $41.6 million in revenue from sales of more than 1.8 million discs, according to The-Numbers.com.

Retail sales of TV product dropped 8% in the quarter to $78 million, from $85 million. Through the first six months, TV content sales are down less than 8% ($14 million) at $165 million.

Overall, Warner Bros. saw operating income drop 28% ($44 million) to $261 million on revenue of $3 billion, which was up 12% ($330 million) year-over-year.

The studio attributed the lower operating income to higher film costs and print and advertising expenses primarily associated with the mix and number of film and video game releases in the quarter.

Operating income in last year’s quarter also included a gain on the sale of Flixster to Fandango.

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