Universal Ups Q3 Home Entertainment Revenue 30%
October 27, 2022
Universal Pictures Home Entertainment Oct. 27 reported third-quarter (ended Sept. 30) revenue of $356 million, which was up more than 30% from revenue of $273 million during the previous-year period. Through nine months of the fiscal year, sales of movies, TV and other content across multiple formats, including packaged media, totaled $964 million, which is up more than 20% from $800 million in 2021 when the market was still impacted by the pandemic.
Top-selling movies at retail in the quarter included Jurassic World Dominion, Sing 2, Halloween Kills and Downton Abbey: A New Era, among others.
Overall studios (including theatrical) revenue increased 31.4% to $3.2 billion, primarily reflecting higher theatrical and content licensing revenue. Theatrical revenue increased $366 million to $673 million, primarily due to the successful performance of recent releases Jurassic World Dominion and Minions: The Rise of Gru. Content licensing revenue increased 16.8%, primarily due to the timing of when content was made available by Universal’s television and film studios under licensing agreements, including additional sales of content as production levels returned to normal.
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Adjusted pre-tax earnings increased $358 million to $537 million reflecting higher revenue, which more than offset higher operating expenses. The increase in operating expenses was driven by higher programming and production expenses, reflecting higher amortization of film and television production costs in the current year period.
For the nine months, revenue from the studios segment increased 26.4% to $8.9 billion, primarily reflecting higher content licensing revenue and theatrical revenue. Adjusted pre-tax earnings decreased 6% to $783 million, reflecting higher operating expenses, which more than offset higher revenue. The increase in operating expenses was primarily driven by higher programming and production expenses.
“Robust demand from guests at our theme parks and from viewers of our iconic content fueled nearly 25% growth in adjusted pre-tax earnings,” Chairman/CEO Brian Roberts said in a statement.