Metro-Goldwyn-Mayer doubled the size of its share buyback to $150 million after the studio’s revenues jumped more the 40 percent to $243 million in its most recent financial quarter.
Net income at the studio behind James Bond and “The Hobbit” hit $17 million. The primary driver of the studio’s financial performance was its television licensing business, which saw revenues climb 84 percent on pay television deals and subscription VOD sales for “Skyfall” and “The Hobbit: An Unexpected Journey.”
MGM did not release a film theatrically in the three-month period ending in September. Its most recent theatrical release, a remake of “Carrie,” was a box office disappointment, earning $43 million worldwide on a $30 million budget. However, the film was released in October, after the reporting period had ended.
“We had another impressive quarter and are extremely pleased with our results year to date, which show the earnings power of our growing fresh content pipeline in both film and television,” MGM Chairman and CEO Gary Barber said. “Our Board of Directors is displaying its continued confidence in the company and its prospects by increasing the authorization under our stock repurchase plan.”
MGM’s upcoming films include “The Hobbit: The Desolation of Smaug,” a sequel to “21 Jump Street” and a remake of “Robocop.”
The studio is privately held, but has been making its financial results public since it emerged from bankruptcy protection in 2010.