Twentieth Century Fox Studios Feb. 7 reported a 66% drop in second-quarter (ended Dec. 31, 2017) operating income to $131 million, compared to operating income of $389 million during the previous-year period.
Revenue topped $2.24 billion, which was down slightly from revenue of $2.26 billion last year.
The studio, which includes 2oth Century Fox Home Entertainment, attributed the decrease primarily to higher theatrical release costs, which more than offset higher theatrical revenue in the current quarter.
Release costs included Murder on the Orient Express, Ferdinand, The Greatest Showman, The Shape of Water (winner of 2 Golden Globes and nominated for 13 Academy Awards), Three Billboards Outside Ebbing, Missouri (winner of 4 Golden Globes and nominated for 7 Academy Awards) and The Post.
Partially offsetting the higher expenses were higher television production contributions, reflecting higher subscription video-on-demand revenue.
Revenue was also offset by lower home entertainment sales and pay and free TV licensing.
Fox’s top-selling discs in 2017 included Hidden Figures (released April 11, 2017) at $25.7 million in sales of 1.5 million units, and Logan, which generated $45 million on sales of 2.2 million disc sold since its May 23 retail release, according to The-Numbers.com.