Spurred by Warner Bros.’ record $5.5 billion global box office, WarnerMedia generated more than $9.2 billion in revenue in 2018 — up nearly 7% from revenue of $8.6 billion when the company operated as Time Warner prior to the closing of AT&T’s $85 billion acquisition.
The media company comprising Warner Bros., HBO, Turner and Otter Media, posted Q4 operating income of $2.7 billion; and $5.69 billion for the year.
The company said it generated $564 million in fourth-quarter (ended Dec. 31, 2018) revenue from the sales of video games and home entertainment, which was down nearly 15% from revenue of $682 million in the previous-year period. For the year, revenue dropped nearly 45% to $1.08 billion from $1.93 billion in 2017.
Sales of packaged media and digital from movies and TV shows topped $1.56 billion and $416 million, respectively, in the previous-year quarter under Time Warner. WarnerMedia does not breakout home video revenue.
In 2018, Warner Bros. theatrical revenue was driven led by Ready Player One and the fourth-quarter releases Fantastic Beasts: The Crimes of Grindelwald and Aquaman, the latter grossing nearly $1.1 billion at the global box office to date.
Warner Q4 revenue topped $4.5 billion and included revenue of $2.1 billion from theatrical product, $1.8 billion from television product and $564 million from video games and home entertainment. Operating expenses totaled $3.7 billion, and the operating income margin was 18.1%.
HBO revenue in the quarter reached $1.7 billion and included $1.4 billion of subscription and $259 million of content and other revenue. Operating expenses totaled $1.1 billion and the operating income margin was 37.2%.
Turner Q4 revenue reached $3.2 billion, compared to $107 million in the fourth quarter of 2017. Revenue during the quarter included $1.8 billion of subscription revenue, $1.1 billion of advertising and $219 million of content and other revenues. Operating expenses totaled $1.9 billion, compared to $59 million in the fourth quarter of 2017. Turner’s operating income margin was 40.2% compared to 44.9% in the year-ago quarter.
The increases were predominantly due to the June 2018 acquisition of Time Warner.