October 28, 2019
Warner Bros. Home Entertainment’s major retail releases occurred earlier this year, but they apparently keep producing on the bottom line.
WarnerMedia cited home entertainment, initial TV telecast revenue and video games, among “other revenue” sources helping offset a 10.4% year-over-year decline in third-quarter (ended Sept. 30) studio revenue to $3.3 billion.
“Games and other revenue” topped $497 million, up 14.2% from revenue of $435 million during the previous-year period. WarnerMedia does not break out home entertainment revenue separately.
The media company, created by AT&T’s acquisition of Time Warner, reported Warner’s revenue drop was due to the mix of current releases, as the prior-year quarter included The Meg, The Nun and Crazy Rich Asians.
Aquaman, Fantastic Beasts: The Crimes of Grindelwald, A Star is Born and The Lego Movie: The Second Part are among the studio’s bestselling discs in 2019.
Warner Bros.’ operating expenses totaled $2.7 billion, down 12.7% versus the third quarter of 2018, driven by lower film and television production costs. Warner’s operating income margin was 17.6% compared to 15.5% in the year-earlier quarter.
Third-quarter 2019 operating revenue were $7.8 billion, down 4.4% versus third-quarter 2018, with segment operating contribution of $2.5 billion, up 0.6% versus the year-ago quarter.
The company posted a $588 million operating profit, up 2.1% from last year with an operating income margin of 17.6% compared to 15.5% in the year-ago quarter.
WarnerMedia segment operating income margin was 32.2%, compared to 31.3% in the year-earlier quarter.