|MARVEL ENTERTAINMENT EARNINGS|
For the first quarter, the company reported earnings of $44.5m or 57 cents a share, down modestly from $45.2 last year. Courtesy of solid DVD sales from its first two in-house movies, the Incredible Hulk and Iron Man, revenue rose 75%to $197m. Licensing revenue was off 4% to approximately $81m. Analysts expected earnings of 37 cents on revenue of $138.2m.
Looking forward to the rest of 2009, Marvel is raising the low end of its net income guidance. The company now expects net sales of $450 to $485m, up from $415 to $460m. Net income is projected in the range of $86 to $105m, up from $80 to $105m. Licensing is expected to contrinbute sales of $200 to $215m. Film production is expected to contribute revenue of $135 to $145m in 2009.
In pipeline, Marvel Studios’ next feature, Iron Man 2, is scheduled for May 2010. X-Men Origins: Wolverine, part of the licensed segment, is in theaters now. This weekend, it generated approximately $158m in worldwide box office receipts, $85m of that domestically. A Spiderman musical with music and lyrics by U2’s Bono and the Edge is scheduled to debut February 18th, 2010. Other core theatrical releases including Thor, The First Avenger: Captain America and Spiderman 4, are on track for 2011 and 2012.
For the second quarter Disney reported a 46% drop in net income, producing $613m, or 33 cents a share, on revenue of $8.09b. That includes $305m in one time charges ($203m in non cash impairment and $102m in restructuring. $108m of the impairment charges were related to FCC radio licensing). Less the charges, Disney earned EPS of 43 cents. Wall Street expected 40 cents from revenue of $8.15b.
Looking at segments and other numbers:
• Interactive Media saw revenue fall off 17% to $129m. Operating income was near flat, down 2% to a loss of $61m.
• Media Networks saw revenue climb 2% to $3,620m while Op. Income fell 4%. Broken out to sub segments, Cable revenue was up 4% and broadcast revenue was down 2%. Cable Op Income was up 5%, broadcast Op Income was down 38%.
• Studio Entertainment revenue was off 21% on the quarter to $1.4b. The segment’s operating icome was down 97% to $13m.
• Overall, free cash flow was $1,318m, down from $2,669 for the year earlier period.
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