MGM Studio Posts Profit on Home-Video Sales of ‘Hobbit’Andy Fixmer
MGM Holdings Inc., the studio that makes James Bond movies, said second-quarter profit from continuing operations soared on home-entertainment sales of the film hit “The Hobbit: An Unexpected Journey.”
Net income increased to $35.9 million, up from profit of $5.9 million from continuing operations a year earlier, when the company sold some assets. Revenue more than doubled to $339 million from $128.4 million a year ago, the Beverly Hills, California-based studio said today in a statement.
MGM is counting on future “Hobbit” and James Bond films to sustain its momentum. Home-entertainment revenue increased more than sixfold to $179.9 million from $28.4 million a year earlier, sparked by international sales of “The Hobbit” and revenue from the latest James Bond film “Skyfall.” Revenue from licensing films and TV shows also soared.
MGM emerged from bankruptcy more than two years ago and in July 2012 filed for a possible initial public offering.
The company has two releases scheduled for later this year, “Carrie,” with Sony Corp., which is set to open in theaters on Oct. 18, and “The Hobbit: The Desolation of Smaug” with Time Warner Inc.’s New Line on Dec. 13.
Releases next year include “RoboCop,” “22 Jump Street,” “Hercules,” “Poltergeist,” and the third film in “The Hobbit,” the company said.
Shares of MGM, intermittently traded over the counter, rose 3.5 percent to $58.50 from $56.50 on Aug. 5.