Sony Pictures Q3 Income Falls 50%3 Feb, 2011 By: Erik Gruenwedel
Sony Pictures Feb. 3 reported a third-quarter (ended Dec. 31) operating income of $58 million, down 50% from an operating income of $116 million during the previous-year period.
Sony Pictures, which includes Sony Pictures Home Entertainment, said the decline was due to the underperformance of theatrical release How Do You Know, lower revenue from home entertainment catalog and increased upfront marketing expenses for current theatrical releases.
The quarter included critically acclaimed theatrical hit The Social Network (Golden Globe and SAG winner; eight Oscar nominations, including Best Picture), which has generated $96 million at the box office and $118 million internationally. The movie was released on disc and electronic Jan. 11, topping first-week home entertainment sales.
Sony said the film’s success did not measure up financially with the previous-year quarter’s dual releases Michael Jackson: This Is It, which generated $262 million in worldwide ticket sales, and end-of-the-world drama 2012, with nearly $770 million in global box office. Both titles dominated their first-week home entertainment sales, respectively.
Sony Pictures quarterly revenue dropped 20% to $1.8 billion, compared with $2.3 billion last year.