Home Box Office Oct. 24 reported third-quarter (ended Sept. 30) operating income of $628 million, up 10.8% from operating income of $552 million during the previous-year period. Revenue inched up 2.4% to $1.64 billion from $1.6 billion due to a 7% increase in subscription revenue that was partially offset by a 32% decline in content and other revenue.
Subscription revenue benefited from higher domestic rates and subscribers and international growth. Content and other revenue declined due to lower home entertainment and international licensing revenue.
Indeed, top packaged media release, Game of Thrones: Season 7,has generated just $7 million in revenue this year, after selling $26.2 million worth of combined DVD/Blu-ray Disc units shortly after its Dec. 12, 2017 release.
Upcoming home video releases include Sharp Objects (Nov. 27) and Succession: Season 1 (Nov. 6).
Third-quarter operating expenses declined 2.1% to $1 billion primarily due to lower marketing and network delivery expenses, partially offset by higher programming costs, versus the third quarter of 2017. Third-quarter operating income margin was 38.2% compared with 35.3% in the year-ago quarter.
All increases were due to the June closing of AT&T’s $85 billion acquisition of Time Warner, which included Turner and Warner Bros.