Theatrical, Streaming Up Warner Q1 Income 35%2 May, 2012 By: Erik Gruenwedel
Warner Bros. May 2 reported first-quarter (ended March 31) operating income of $214 million, up 35% ($56 million) from operating income of $158 million during the previous-year period.
Parent Time Warner, which renamed its “filmed entertainment” segment to “film and TV entertainment,” attributed a promising theatrical release slate — spearheaded by Sherlock Holmes: A Game of Shadows and Journey 2: The Mysterious Island — in addition to higher television licensing revenue and subscription video-on-demand availability of a TV series, for the income surge.
The segment includes Warner Bros., Warner Bros. TV and Warner Bros. Home Entertainment Group, the latter including Warner Home Video.
Revenue increased 7% ($180 million) to $2.8 billion, partially offset by lower home entertainment revenue, due mainly to lower revenue from prior-year releases. Indeed, revenue from home video (discs), electronic sellthrough and transactional video-on-demand of theatrical releases declined nearly 15% to $462 million from $541 million last year.
Meanwhile, disc, electronic sellthrough and transactional VOD of TV programs surged 33% to $180 million, compared with $135 million last year. Warner generated $75 million in revenue from SVOD license agreements, with about $200 million on tap in 2012, according to CFO John Martin.
Warner is one of the largest producers of scripted television programming for both network and pay-TV channels.