MGM Net Earnings Soar After Tax Benefit
A tax benefit led to a more than four-fold gain in net income to $124 million.
MGM Holdings, parent of the studio behind the James Bond film, Spectre, said Thursday that its third-quarter revenue fell to $212.1 million from $233.5 million last year, but a tax benefit led to a more than four-fold gain in net income to $124 million.
At UAMG, which is a joint venture between MGM, Mark Burnett, Roma Downey and Hearst Productions, net income was $35.3 million in the first three quarters this year
UAMG includes stakes in reality shows like The Voice, Survivor, Apprentice and Shark Tank, as well as scripted shows like The Bible and the theatrical release, Son of God.
MGM's next release is Creed, a continuation of the Rocky saga starring Sylvester Stallone, and it also has remakes of The Magnificent Seven and Ben Hur in the works.
In television, MGM's assets include The Vikings, Fargo and Teen Wolf.
MGM said it recorded an $83.1 million tax benefit during the quarter for a variety of reasons including "extra-territorial income exclusions dating back to 2001" and "the impact of tax accounting method change for film and television cost amortization."
During a conference call to discuss earnings, CEO Gary Barber predicted "terrific" results for the full year in part because of Spectre and Creed and he also said there is "tremendous" interest from several studios looking to distribute the next James Bond film.