Filmed Entertainment No Help to Time Warner Q31 Nov, 2006 By: Erik Gruenwedel
Despite a 10% ($240 million) drop in filmed entertainment (including DVD) revenue to $2.4 billion, Time Warner (TW) posted third-quarter (ended Sept. 30) income of $2.3 billion, up 172% from $853 million during the same period last year.
The media giant cited difficult comparisons with a later release schedule and related theatrical results. The lone bright spot was the worldwide box office tally for Superman Returns.
Last year, sales of Million Dollar Baby, Constantine and New Line's Monster-in-Law helped TW post film entertainment revenue of $2.7 billion, up 6% ($147 million) from the same period in 2004.
“I am highly confident that we will grow the earnings in the film side next year,” said TW president and COO Jeff Bewkes, in a conference call. “We had a hell of a year in , it was a record year in theatrical; we were No. 1 in worldwide home video.”
He said the next couple of months would include the top of Warner Bros.' release schedule, including The Departed, Happy Feet and Blood Diamond.
“All the [upcoming] video revenue flows into 2007,” Bewkes said. “That's very auspicious for the end of the year and next year.”
Strong growth in Time Warner Cable (revenues up 44%) and network television programming (up 4%) helped grow overall revenue 7% to $10.9 billion, compared to $10.2 billion last year.