Strong Holiday Sales Boost Paramount Home Entertainment9 Feb, 2017 By: Erik Gruenwedel
Paramount Home Media Distribution Feb. 9 reported first-quarter (ended Dec. 31, 2016) revenue of $243 million, up 2% from revenue of $239 million during the previous-year period.
Domestic home entertainment revenue increased 12% on strong holiday sales, while international home entertainment revenue decreased 14%. Foreign exchange had a 6-percentage-point unfavorable impact on international home entertainment revenue.
The studio attributed the increase to a strong winter retail period. Top-performing titles included Daddy’s Home, which generated $14.8 million in combined DVD/Blu-ray Disc unit sales, according to The-Numbers.com. The comedy was also Redbox’s top-rented disc in 2016.
Teenage Mutant Ninja Turtles: Out of the Shadows sold more than 742,000 discs for $16.6 million, and 10 Cloverfield Lane generated almost $7 million in revenue.
Meanwhile, Paramount Pictures said revenue grew 24% to $758 million, from $612 million. The increase was primarily due to improved theatrical revenue of $192 million, an increase of 104% year-over-year. Domestic theatrical box office increased 128% and international theatrical revenue increased 73%. Foreign exchange had a 3-percentage-point unfavorable impact on international theatrical revenues.
The studio posted an adjusted operating loss of $180 million, up 23% from an operating loss of $146 million. Paramount cited timing of marketing expenses for fiscal 2017 theatrical titles for the increased loss.
Licensing revenue grew 3% to $245 million. Domestic licensing revenue increased 41%, primarily driven by the release of television product, while international licensing revenue decreased 17%.
Ancillary revenue increased 86% to $78 million. Domestic ancillary revenue increased 109%, driven by higher home entertainment revenue and the impact of a film slate co-financing agreement signed in the quarter. International ancillary revenue increased 10%.