Sony Pictures Q3 Income Plummets 85%2 Feb, 2012 By: Erik Gruenwedel
Sony Pictures Entertainment Feb. 2 reported third-quarter (ended Dec. 31, 2011) operating income of $9 million, down 85% from operating income of $58 million during the same period in 2010.
Sony Pictures, which includes Sony Pictures Home Entertainment, attributed the decline to the theatrical underperformance of Arthur Christmas, a dearth of home entertainment releases and increased theatrical marketing costs, among other issues. The previous-year quarter included revenue from Oscar-winner The Social Network.
Lone bright spots in the quarter included higher revenue from SPE-produced network television programming and increased advertising from the studio’s television network in India.
SPE revenue increased 7.7% to more than $2 billion due in part to an increased theatrical slate and strong home entertainment results from The Smurfs. The studio also recognized undisclosed revenue from the consolidation of the Game Show Network.
Notably, through nine months of the fiscal year, SPE’s operating income is up 837% to $328 million on revenue of $6 billion, which is up 11.3% from the same nine-month period during the previous year.