MGM reported strong financial results thanks to two blockbusters
MGM reported a massive increase in its quarterly and annual earnings on Monday thanks to two blockbusters — "The Hobbit" and "Skyfall."
Revenue for the fourth quarter of 2012 increased almost sevenfold from the fourth quarter of 2011, while the company swung from a loss of $22.5 million to a profit of $78.7 million.
For the full year, MGM almost doubled its revenue to $1.4 billion while increasing its net income 64 percent to $128 million.
The company, which emerged from bankruptcy in 2010, is releasing its financial results in advance of a potential initial public offering.
“I am very pleased with our strong results for 2012, reinforcing my optimism about the future of MGM,” Chairman and CEO Gary Barber said in a statement. “With back-to-back films each grossing worldwide box office in excess of $1 billion, MGM now has two of the top 15 films in box-office history. Our unprecedented success and extraordinary financial performance this past year were made possible by the contributions and strength of our team at MGM and our partners around the world.”
One of the leading film studios of early Hollywood and home of the iconic roaring lion, the company has shrunk over the past several decades and recently suffered through several rough years financially. Since emerging from bankruptcy, it has secured $500 million in credit and is looking for more in light of its recent success.
As Barber noted, both “Skyfall” and “The Hobbit” topped $1 billion worldwide. That performance from Bond helped reinvigorate the franchise after the lackluster "Quantum of Solace," and MGM will also benefit from two more “Hobbit” films.
Though the majority of the company's revenue stemmed from its movies' box office receipts, television licensing and home entertainment both contributed to the bottom line as well, increasing from the year. Much of the $96 million in home entertainment revenue was due to 50th anniversary James Bond boxsets.
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