MGM's Revenue on the Rise, But Net Income Struggles
The studio's theatrical revenue grew, thanks to films like 'Death Wish' and 'Tomb Raider.'
MGM on Tuesday reported revenue that rose 26 percent, but net income that fell 60 percent, in the second quarter due to costs associated with recent acquisitions including Evolution Film & Tape, Epix and Big Fish Entertainment.
The company's television content segment showed impressive cash flow, thanks to shows like The Handmaid’s Tale, Condor, Luis Miguel: La Serie and Vikings, along with reality shows like The Voice and Survivor, the latter now in its 36th season.
As for film, theatrical revenue grew due to Death Wish in international markets; TV licensing was up because of Spectre, Me Before You and Tomb Raider; and home entertainment also benefited from Death Wish and Tomb Raider.
MGM recently formed United Artists Digital Studios, though it didn't break out financial results for that unit, which produces or co-produces Stargate Origins, #WarGames, Weekend at Bernie's and The Baxters, the first scripted series for LightWorkers Media, MGM's faith and family platform.
MGM said Tuesday that overall revenue grew from $325 million in last year's second quarter to $408 million this year, but expenses surged from $272 million to $374 million as the company spends to grow.
Net income was $156.6 million in the year-ago quarter and $62.4 million in the same quarter this year.