Universal Pictures Q3 Home Entertainment Revenue ‘Furious’

The fate of home entertainment studio financials often revolves the strength and timing of movie releases at the box office and at retail.

Universal Pictures Home Entertainment Oct. 25 reported third-quarter (ended Sept. 30) revenue of $260 million, which was down 13% from revenue of $299 million during the previous-year period. Year-to-date, revenue reaches nearly $780 million, down 9.5% from $860 million last year.

The studio cited unfavorable comparisons with The Fate of the Furious and The Boss Baby releases in the previous-year. Indeed, Furious generated more than $46 million is combined DVD/Blu-ray Disc unit sales in 2017, while Baby sold another $28 million, according to The-Numbers.com. The titles ranked 11thand 19thbest-selling discs last year.

In the current quarter, UPHE generated revenue from Fifty Shades Freed ($23.6 million since May 8 release), Pacific Rim Rising ($16.7 million since June 19 release) and Pitch Perfect 3 ($14.8 million since March 20), among others.

Overall, Universal Pictures revenue increased 3.8% to $1.8 billion in the quarter, reflecting increased theatrical and content licensing revenue.

Theatrical revenue increased 16.7%, due to the success of Jurassic World: Fallen Kingdom, and the performance of Mamma Mia! Here We Go Again.

Fallen Kingdom generated $1.3 billion at the global box office, including $417 million in the United States. Mamma Mia! generated $393 million at the box office, including $121 million domestically. Both titles were released on packaged media Sept. 18 and Oct. 23, respectively.

Content licensing revenue increased 8.6%, driven by the timing of when content was made available under licensing agreements. Pre-tax operating income plummeted 44.2% to $214 million, reflecting higher operating costs, partially offset by higher revenue.

Universal Upped 2017 Home Entertainment Revenue

Universal Pictures Home Entertainment Jan. 24 reported fiscal 2017 revenue of more than $1.32 billion, which was up about 5% from revenue of $1.25 billion in 2016.

The studio said fourth-quarter revenue declined 20% to $377 million from revenue of $471 million in the previous-year period.

Home Entertainment Q4 revenue decreases reflected the success of several releases in the prior year period, including The Secret Life of Pets and Jason Bourne, partially offset by Despicable Me 3 in this year’s fourth quarter.

Overall quarterly studio revenue decreased 5.2% to $1.7 billion in the fourth quarter of 2017, reflecting lower theatrical, home entertainment, and other revenue, partially offset by increased content licensing revenue.

Theatrical revenue plummeted 42.1%, primarily due to a higher number of releases in last year’s fourth quarter, including animated Sing, partially offset by the performance of this year’s fourth quarter releases, including Pitch Perfect 3 

PP3 has generated more than $100 million at the global box office since its Dec. 22, 2017 theatrical launch. Sing generated $270 million at the 2016/17 box office.

Content licensing revenue increased 21.2%, driven by the timing of when content was made available under licensing agreements. Adjusted pre-tax earnings increased by 90% to $230 million, reflecting lower programming and production costs, partially offset by the decline in revenue.

For the year, studio increased 20.4% to $7.7 billion compared to 2016, reflecting higher theatrical, content licensing, other and home entertainment revenue. Adjusted pre-tax earnings increased 83.3% to $1.3 billion compared to 2016, reflecting higher revenue, partially offset by increased programming and production costs.