Hannover House Q3 Revenue, Income Plummet16 Nov, 2012 By: Erik Gruenwedel
Independent home entertainment distributor Hannover House Nov. 16 reported third-quarter (ended Sept. 30) pre-tax income of more than $411,000, down nearly 60% from net income of $1 million during the previous-year period.
Los Angeles-based Hannover House generated revenue of $746,000 compared to more than $1.9 million last year.
Principal revenue drivers included DVD and Blu-ray Disc sales of $389,454, video-on-demand revenue of $275,667 and sub-distribution revenue of $35,822 from 20th Century Fox Home Entertainment’s release of Twelve.
Hannover House also recognized $40,000 in domestic television license fees. Titles contributing revenue in the quarter included video releases Patient Zero, Animal Clinic and Pink Skies, with VOD contracts for Toys in the Attic and Cook County. Theatrical revenue from the Sept. 7 launch of Toys in the Attic was not settled with exhibitors as of the close of the quarter and was, therefore, excluded from overall revenue.
Fox revenue for the current reporting quarter was $35,822. Hannover House also posted $300,000 in sponsorship participations during last year's Q3 from Turtle: The Incredible Journey.
Adjusting for these two, one-time events from the prior year's Q3 revenue left core DVD, Blu-ray, VOD and television revenue of $448,367 for Sept. 30, 2011. The same core revenue streams for this year's current reporting quarter (excluding Fox), was $710,523, representing an improvement in core media sales of approximately 59%.
"We are pleased with the Q3 results," Fred Shefte, president of Hannover House, said in a statement. "The continued focus on our core business of high-margin, direct-to-video releases has generated a significant and positive impact on our corporate profile with retailers, and continues to build on our bottom line and retained earnings.”