‘Handmaid’s Tale,’ ‘Vikings’ Carry MGM to Strong Q2 as TV Revenue Doubles

Studio’s television licensing revenue surged 125 percent year-over-year

MGM

“The Handmaid’s Tale” wasn’t just one of the critical darlings of this year — it also helped MGM deliver a solid second-quarter, even with a slim movie slate.

MGM reported revenue of $325 million for the three months ended June 30, a 20 percent increase from the same period a year earlier. The independent studio also reported $93.5 million in adjusted earnings before interest, taxes, depreciation and amortization (a common measure of the core profitability of a business), which was up 2 percent year-over-year.

TV was a strong growth business for MGM, as the company generated $124 million in television licensing revenue for the quarter, a 125 percent increase year-over-year. However, adjusted EBITDA actually dipped 10 percent to $32 million, as MGM incurred significantly higher operating expenses.

During the quarter, MGM partially delivered the first season of Hulu’s “The Handmaid’s Tale,” which received 13 Emmy nominations, as well as season 5 of “Vikings,” season 3 of “Fargo” and new hip-hop competition show “Signed.”

The studio reeled in $128 million in film revenue for the three months, down 35 percent from the same time the previous year, largely due to significantly lower home entertainment sales relating to “Spectre” and “Creed.” MGM had one theatrical release during the quarter, the teen romance “Everything, Everything,” but did not earn a substantial amount of the theatrical revenue from that movie before June 30.

Also in the quarter, MGM acquired the remainder of premium cable network Epix for $1 billion and borrowed $2.1 billion to finance that deal and pursue other growth opportunities. MGM earned $57 million in revenue from Epix in the 51 days between its consolidation of the company on May 11 and the end of the quarter.

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