MGM Doubles Revs, 'Hobbit' Helps
A big positive swing for MGM Holdings was seen in its first-quarter earning results, thanks to James Bond and Bilbo Baggins.
Revenues more than doubled to $481.7 million from $179.5 million due to theatrical and home entertainment business from “Skyfall” and “The Hobbit.” Net income also doubled -- to $57.4 million from $23.3 million a year earlier.
Just those two movies alone added $139.5 million in theatrical revenue. The company expects positive results in the next quarter from “Hansel and Gretel: Witch Hunters” and “G.I. Joe: Retaliation."
Worldwide home entertainment revenue also soared on sales from the James Bond film “Skyfall” to $201.7 million for the three months ended March 31, that's up from $36.2 million a year earlier. Shares of MGM Holdings shot up 12%, closing at $54.75.
This week, Tribune Broadcasting and MGM Television struck a deal for MGM's This TV, a 24/7 movie TV network that runs over local TV stations digital subchannels. The network features 4,000 MGM movies. Starting this fall, Tribune Broadcasting will oversee all programming operations for the digital network. Weigel Broadcasting had been MGM's partner in This TV, which launched in 2008.