‘Hobbit’ Sequel Opens With $73.7 Million to Lead Box Office

“The Hobbit: The Desolation of Smaug,” the second film in Peter Jackson’s trilogy, collected $73.7 million in its opening weekend for Time Warner Inc. (TWX) and MGM Holdings Inc. (MGMB) to lead U.S. and Canadian ticket sales.

The film lagged behind its predecessor, “The Hobbit: An Unexpected Journey,” which opened with $84.6 million a year ago, Rentrak Corp. (RENT) said in an e-mailed statement yesterday. “Tyler Perry’s A Madea Christmas,” the eighth installment in the comedy series, collected $16 million in third place for Lions Gate Entertainment Corp. (LGF)

“The Desolation of Smaug,” Jackson’s fifth film based on the works of J.R.R. Tolkien, adds to Time Warner’s box-office lead among studios as the end of 2013 approaches. Together, the first “Hobbit” and three “Lord of the Rings” movies from 2001 to 2003 generated more than $3.9 billion in global box-office sales.

This past weekend’s film had an “excellent” debut, “although the movie did come in a little below expectations,” said Paul Sweeney, a Bloomberg Industries analyst. He said he expected a “good run” in the U.S., and said the studios are focused on a growth in sales in international markets.

“The Desolation of Smaug” was projected to collect $80 million, according to researcher BoxOffice.com, and may take in $280 million in its entire domestic run. As with the first “Hobbit” picture, the film’s success will hinge more on international sales, which total $131.2 million so far, according to Rentrak.

Crowded Market

“An Unexpected Journey” generated $303 million in U.S. theaters and went on to do $1.02 billion worldwide, according to Box Office Mojo.

“The market place is little bit more crowded this time and that’s going to hurt it,” said Phil Contrino, chief analyst for BoxOffice.com.

Besides “Madea” and holdovers “Frozen,” from Walt Disney Co., and Lions Gate’s “The Hunger Games: Catching Fire,” two movies that opened in a handful of theaters will be released widely next weekend: Disney’s “Saving Mr. Banks” and “American Hustle,” from Sony Corp. (6758)

Industrywide, U.S. and Canadian ticket revenue has risen less than 1 percent to $10.2 billion in 2013. Time Warner’s hits include “Gravity,” a Golden Globe best-drama nominee, which sat atop the box office for three weeks in October.

Bilbo Baggins

In “The Desolation of Smaug,” Martin Freeman returns as the hobbit Bilbo Baggins. Ian McKellen reprises Gandalf, the wizard he portrayed in the first Hobbit film and the original “Lord of the Rings” trilogy. The movie picks up where the last one ended, with Baggins, Gandalf and their dwarf friends continuing the quest to reclaim their homeland, Erebor, from the dragon Smaug, voiced by Benedict Cumberbatch.

RottenTomatoes.com, a website that aggregates reviews, gives the film a 74 percent positive rating, an improvement over the 65 percent rating earned by “An Unexpected Journey.

“Although ‘Smaug’ is not quite as golden as the best of ‘The Rings,’ the film is infused with an eccentricity and electricity that keep most of its nearly three hours humming,” Los Angeles Times critic Betsy Sharkey wrote.

The highest-grossing film of Jackson’s franchise is 2003’s “Lord of the Rings: The Return of the King,” which collected $377 million domestically and $1.13 billion worldwide.

“The Desolation of Smaug” is showing in as many as 3,300 theaters that offer 3-D, more than 300 of them premium large-format theaters. Warner Bros., the distributor, and two of the largest North American theater chains, Regal Entertainment Group (RGC) and Cineplex Inc. (CGX), are squeezing out extra revenue with so-called super tickets that offer reclining and reserved seating and with better sound.

‘American Hustle’

“Tyler Perry’s A Madea Christmas,” the only other film to open in wide release, was projected by BoxOffice.com to take in $33 million for Lions Gate. The holiday comedy was directed, written and produced by Perry, who also stars as the main character in drag, Mabel “Madea” Simmons.

In this installment, Madea helps a niece pay a surprise visit to her daughter, and announces she won’t be coming home for Christmas.

“American Hustle,” featuring Christian Bale, Bradley Cooper, Amy Adams, Jeremy Renner and Jennifer Lawrence, opened in six theaters ahead of its wide release next weekend. A fictionalized account of the Federal Bureau of Investigation’s Abscam sting in the late 1970s, the film features Bale as a con man with Adams as his mistress. They are recruited and forced to work for an FBI agent, played by Cooper, who pushes them into a world of power brokers and mafia.

‘Mr. Banks’

The movie has garnered seven Golden Globe nominations for Sony Corp.’s Columbia Pictures, with Bale and Adams both nominated for their roles as best actor and actress in comedy. The movie got a 95 percent positive rating on RottenTomatoes.com.

“Saving Mr. Banks,” from Walt Disney Co., also opened in limited release ahead of an expanded debut on Dec. 20. About the making of the film “Mary Poppins,” it stars Emma Thompson as P.L. Travers, the author of the book the movie is based on, and Tom Hanks as Walt Disney. Thompson received a Golden Globe nomination for best actress for a drama.

“Saving Mr. Banks” garnered an 81 percent positive rating on RottenTomatoes.com.

‘Catching Fire’

The animated feature “Frozen” placed second this past weekend, collecting $22.2 million in its third week of wide release. That brings the film’s domestic total to $164.4 million.

“Catching Fire” placed fourth in its fourth weekend, with $13.2 million for Lions Gate. The sequel to the 2012 film about teens fighting to the death starring Jennifer Lawrence, has taken in $357 million domestically since its debut on Nov. 22, according to Rentrak.

“Thor: The Dark World,” the superhero sequel from Disney’s Marvel studios, took fifth place with $2.7 million.

Weekend revenue for the top 10 films rose 8 percent to $137 million from the year-earlier period, Rentrak said.

The following table has U.S. movie box-office figures provided by studios to Rentrak. The amounts are based on gross ticket sales for Dec. 13 and Dec. 14, and estimates for yesterday.

                      Rev.   Pct.            Avg./   Total
Movie                 (mln)   Chg. Theaters  Theater  (mln)  Wks
================================================================
 1 Hobbit             $73.7   --    3,903   $18,877   $73.7    1
 2 Frozen              22.2  -30    3,716     5,970   164.4    4
 3 A Madea Christmas   16.0   --    2,194     7,293    16.0    1
 4 HG: Catching Fire   13.2  -50    3,563     3,691   357.0    4
 5 Thor                 2.7  -44    2,264     1,193   198.1    6
 6 Out of the Furnace   2.3  -56    2,101     1,104     9.5    2
 7 Delivery Man         1.9  -50    2,041       917    28.0    4
 8 Philomena            1.8  -20      835     2,103    11.0    4
 9 Book Thief, The      1.7  -36    1,158     1,446    14.9    6
10 Homefront            1.6  -52    2,103       778    18.4    3


Top 10 Films Grosses

   This Week     Year Ago      Pct.
     (mln)         (mln)       Chg.
===================================
     $137         $126.8       +8.0

Year-to-date Revenue

     2013          2012

      YTD           YTD        Pct.
     (mln)         (mln)       Chg.
===================================
    $10,158       $10,116      +0.4

Source: Rentrak Corp.

To contact the reporter on this story: Ben Livesey in San Francisco at blivesey@bloomberg.net

To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net

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