Games, TV Up Warner Bros. Q3 Profit 62%4 Nov, 2015 By: Erik Gruenwedel
Warner Bros. may only have two movies (San Andreas and Mad Max: Fury Road) among the Top 20 theatrical releases thus far in 2015, but that doesn’t mean it isn’t profitable.
In fact, the venerable studio saw third-quarter (ended Sept. 30) operating income increase 62% ($148 million) to $385 million compared with the same period a year ago. Revenue increased 15% ($415 million) to $3.2 billion.
Warner, which includes Warner Bros. Home Entertainment, Warner Bros. Television and Warner Bros. Interactive Entertainment, offset declining theatrical revenue with strong video game sales and TV program licensing.
Game revenue was driven by releases of Lego Dimensions and Mad Max, in addition to carryover revenue from Mortal Kombat X and Batman: Arkham Knight. Through Sept. 30, Warner ranked as the top domestic game publisher, with Kombat X the No. 1 game.
Indeed, new Warner TV series “Supergirl” represents one of eight shows on the air based on intellectual property from DC Entertainment, which is a main driver behind WBIE’s record year.
TV revenue was also driven by the cable and off-network availability of “2 Broke Girls” and subscription streaming licensing of “Person of Interest.”
Home video revenue, including transactional VOD and Digital HD, from theatrical content declined 9% ($45 million) to $355 million. Year-to-date, home video revenue is down about 11% ($150 million) at $1.18 billion.
Home video and digital revenue from TV content was relatively flat at $143 million. Through the first nine months, TV revenue is down 7.4% ($27 million) to $341 million.