MGM Buys Back Shares as Revenue and Income Fall
Net income dropped 9 percent to $37 million.
Privately held MGM said Wednesday its revenue in the second quarter fell 13 percent to $274.3 million as foreign exchange rates took a toll and sales of home entertainment product fell. Net income dropped 9 percent to $37 million.
The company also disclosed Wednesday that it repurchased 700,000 of its privately traded shares during the quarter.
While home entertainment revenue sunk 37 percent to $85 million, the company said TV sales of Hercules, If I Stay and 22 Jump Street were strong. On the other hand, international home entertainment revenue for The Hobbit: The Battle of the Five Armies in the recent quarter was below that of The Hobbit: The Desolation of Smaug in the year-ago quarter.
Theatrically, MGM made just $1.1 million in revenue in the quarter because a substantial portion of the money generated by Hot Pursuit, Poltergeist and Max will be recognized later. The studio's next big event is Spectre, the James Bond movie starring Daniel Craig that is set to open Nov. 6.
Among MGM's many assets is a 55 percent stake in United Artists Media Group, a joint venture with Mark Burnett, Roma Downey and Hearst Prods. that includes reality shows like The Voice and Survivor as well as faith-based products like the theatrical release Son of God. MGM said it accrued $14.8 million in net income via UAMG for the first six months of the year.