| Marvel Entertainment 3Q Profit declines |
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03/11/2009 18:46 (17 Day 11:20 minutes ago) | |||||
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The FINANCIAL -- Marvel Entertainment Inc., the comic book publisher reported on November 3 third-quarter earnings fell 60% on lower film revenue. In August Marvel agreed to be bought by Walt Disney over the summer.
Net income declined to $20.4 million, or 26 cents a share, from $50.6 million, or 64 cents, a year earlier, the New York- based company said in a statement, according to Bloomberg. Analysts projected 24 cents, according to the average of 16 estimates compiled by Bloomberg.
Marvel last month said it wouldn't provide a financial outlook for 2009 or next year given the proposed acquisition, The Wall Street Journal informs. In August, the company had raised its 2009 earnings and sales forecast, citing a stronger-than-expected performance in the first half.
Marvel's licensing business--an increasing area of focus for the company--saw sales decline 16%. The company's publishing segment's sales were down 5.8%, while film production sales slumped 73%, according to the same source. Operating profit was down for licensing and publishing, while film production swung to a loss.
Marvel Entertainment has created at least 5,000 characters, including Spider-Man, Iron Man, Captain America, Hulk, X-Men. Marvel is part of a joint venture with Sony Pictures Entertainment Inc., called Spider-Man Merchandising L.P. related to Spider-Man movie related licensed products, RTT News reported. The global economic downturn that uprooted several businesses has also hurt the entertainment business. Meanwhile, Marvel is now trying to be more vibrant in the company of Paramount Pictures, which would now distribute five of its movies including Iron Man 2 on May 7, 2010.
On August 31, Walt Disney Co. (DIS) agreed to acquire Marvel, subject to Marvel shareholder approval and other customary closing conditions, in a stock and cash transaction valued at about $4 billion, according to the same source. The company continues to anticipate closure of the deal by calendar year end. Under the deal, Disney will acquire ownership of more than 5,000 Marvel comic-book characters, including Iron Man, Spider-Man, X-Men and Captain America. The boards of directors of both Disney and Marvel have each approved the transaction.
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