Warner Bros boosted by big Hobbit sales
THE Hobbit, with box office earnings topping US$1 billion (NZ$1.16b), has helped United States media giant Time Warner lift first quarter net income by 24 per cent to US$720 million.
Time Warner subsidiary Warner Bros makes movies and television programmes, with New Zealand-made film The Hobbit one of its top performers in 2012, along with the latest Batman film, also another US$1 billion blockbuster.
The Hobbit is the fourthbiggest-selling film in Warner Brothers’ history.
Warner Bros’ operating income was up 23 per cent to US$265m in the March quarter, even though overall movie production revenues fell 7 per cent to US$1.2b.
It said though movie theatre revenues were down in the latest quarter, that was offset in part by higher home-video revenues from The Hobbit and Argo.
Operating income rose US$50m to US$265 million as contributions from The Hobbit and lower print and advertising costs more than offset a fall in revenues.
The Hobbit ranks as the 14th-highestselling movie of all time, with worldwide sales of US$1.017b, close behind the latest Batman movie, The Dark Knight Rises, which has earned US$1.08 billion, also from the Warner studios.
In the past NZ First leader Winston Peters has called on Warner Bros to give back the New Zealand Government’s $67m subsidy for The Hobbit, after it reached US$1b in sales.
The Government has claimed the movie created 3000 jobs in New Zealand, based on figures provided by Sir Peter Jackson’s Wingnut Films.
There were 1000 people on the studio payroll, 1000 at Weta Digital and about 1000 at Weta Workshop, Park Road Post, related firms and casual contractors.
Overall, Time Warner revenue of US$6.94b was short of the US$7.16b expected by analysts. In the same period last year, revenue was US$6.98b.
The company said the Warner Bros studio was successful with television productions, including hits such as Revolution on NBC and The Following on Fox.
But revenue at the studio fell 4 per cent to US$2.7b because its movies did not do as well in theatres and it had fewer TV shows available for licensing abroad.
The Hobbit