Image Ups Q3 Disc Revenue 11%

14 Feb, 2012 By: Erik Gruenwedel

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Strong sales of physical media contributed to Image Entertainment reporting third-quarter (ended Dec. 31) net revenue of $34.5 million, up 25% from net revenue of $27.6 million during the previous-year period.

Chatsworth, Calif.-based Image said the revenue gain was due to increases in sales of disc, digital and broadcast content. Specifically, disc revenue (which included DVD and Blu-ray titles) increased 10.7% to $27.9 million, from $25.2 million.

On the physical media side, Image has 3,700 exclusive DVD and Blu-ray Disc titles and approximately 300 exclusive CD titles in domestic release, and more than 450 programs internationally via sublicense agreements.

Digital revenue increased 287% to $4.3 million from $1.1 million during the previous-year period, while broadcast revenue increased 43.7% to $1.6 million from $1.1 million last year.

Margins decreased to 21.7% from 23.1% due to lower content margins (less expensive discs) at retail partially offset by higher-margin digital revenues, lower manufacturing costs, and freight and fulfillment expenses.

Consequently, net income declined 45% to $763,000 compared with net income of $1.3 million last year.

“We’re pleased with the results of this past quarter,” said Image CEO Ted Green. “We’ve made great strides in expanding both our digital and broadcast business. Our digital distribution revenue and broadcast revenue have both significantly increased over the same quarter last year and we look forward to that continuing.”

 

 

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