MGM Revenue, Net Income Up on Improved TV Results

FX
FX's 'Fargo'

The company has another strong performance despite a lack of significant theatrical hits.

MGM Holdings on Thursday reported first quarter 2015 revenue was up 8 percent to $364 million compared to the same quarter a year earlier, driven by an increase in revenue from SVOD and licensing TV shows including The Vikings, Fargo and Teen Wolf.

It was another strong performance for the privately held company under CEO Gary Barber.

Net income for the first quarter of 2015 was $56.8 million, up 27 percent from $44.6 million in the same quarter of 2014.

Worldwide TV licensing revenue was $193.5 million in the first quarter of 2015, an impressive 66 percent increase over the $116.4 million recorded in the first quarter of 2014.

That help push up adjusted EBITDA (cash flow) by 18 percent to $116 million for the quarter compared to $98.5 million in the same quarter a year earlier.

Cash on hand jumped nicely to $236 million compared to $257 million on Dec. 31, 2014.

The corporate debt remain constant at $300 million.

There were no significant new theatrical releases in the quarter so theatrical revenues were down to $96.2 million, a decrease of $14.5 million from the $110.7 million generated a year earlier.

MGM did not include results from Hot Tub Time Machine 2 in the quarterly results.

MGM’s 19 percent share of the Epix pay TV network brought in $14 million during the quarter, and it recorded $6.2 million from its share of United Artists Media Group, before cost amortization. MGM restructured United Artist last year when it acquired a company owned by prolific TV producer Mark Burnett and Roma Downey.

Home entertainment revenue was down 3.3 percent to $46.6 million compared to $49.9 million a year earlier as the movie and TV series played off worldwide.

MGM is looking to a big boost at the end of this year when the next James Bond movie, Spectre, is due for release. It also has a remake of Poltergeist coming on Memorial Day weekend.

On the thinly traded private market MGM Holdings shares rose nicely to $79.50 on the strong quarterly performance. MGM has remained mum on whether it will do an IPO in the coming year despite mounting speculation that is coming. 

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