Paramount’s Q2 ‘Licensing and Other’ Revenue Increased 27%

Paramount Global Aug. 4 reported second-quarter (ended June 30) revenue of $587 million in its “licensing and other” business segment, which was up 27% from revenue of $463 million in the prior-year period.

The business unit, which includes Paramount Home Entertainment, said the revenue increase was primarily driven by the monetization of recent theatrical releases, including the 1986 box office hit Top Gun in foreign markets.

Pre-tax operating income for filmed entertainment increased $129 million in the quarter to $181 million, from $52 million in the previous-year period, reflecting the strong performance of current year movie releases.

Indeed, revenue grew 126% year-over-year to $1.36 billion led by the $630 million revenue surge driven by the releases of Top Gun: Maverick and Sonic the Hedgehog 2 in the quarter.

Maverick has earned more than $1.3 billion to date at the box office globally and continues to draw audiences to theaters. In addition to being the most successful Paramount movie domestically, it is now in the top 10 domestic films of all-time.

Notably, Maverick has not yet been released in retail channels, which portends strong future digital and packaged-media sales for the Tom Cruise sequel.

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Meanwhile, The Lost City and Sonic the Hedgehog 2 debuted No. 1 at the box office and in retail channels, joining Scream, Jackass Forever and Top Gun: Maverick to total five No. 1 films in the first half of the year, with Sonic 2 making history as the biggest video game movie opening of all-time.

“At the heart of that [revenue] growth was our hugely popular content, including the cultural phenomenon and No. 1 movie in the world, Top Gun: Maverick,” CEO Bob Bakish said in a statement. “Our deep and growing library of valuable IP, coupled with the strength of our best-in-class assets, ensures we are well-positioned to continue to maximize value for our shareholders.”