iSteve
11-05-2007, 03:34 PM
MARVEL RELEASES Q3 2007 NUMBERS
Marvel today released its numbers for the 3rd quarter of 2007 and for the nine months ending September 30th, 2007. Overall, the company’s third quarter results were nearly triple that of one year ago, based largely on licensing from Spider-Man 3.
By division, Marvel saw net sales of: $66 million in licensing (compared to $28.3 million in Q3 2006) - $24.2 million accountable to Marvel’s joint venture with Sony to license Spider-Man 3; $34.9 million in publishing (compared to $30.9 million in Q3 2006); and $22.7 million in toys (compared to $33.0 million in Q3 2006). The gains allowed net income for the quarter to increase to $36.3 million (45 cents per share), compared to a net income of $13.2 million (16 cents per share) a year ago. Wall Street analysts were expecting 28 cents per share.
Also, sales were up 34% to $123.6 million compared to $92.2 million a year ago, and against a predicted $92.2 million from analysts.
From Marvel’s release:
Marvel's Chairman, Morton Handel, commented, "Marvel achieved strong operating results across all its businesses for the third quarter and nine months ending September 30, 2007. Licensing segment results benefited from strong contributions related to Spider-Man 3 consumer merchandise licensing. The publishing segment continues to benefit from strong sales of event-driven imprints such as World War Hulk and Stephen King's Dark Tower series. Finally, our toy license agreement with Hasbro yielded an improved operating income contribution in the 2007 periods, largely due to fees from Spider-Man 3-based products.
"We are excited by the progress on our Iron Man and Incredible Hulk feature films for next year and the growing retail and consumer product support for these properties. We are also focused on tapping the potential of Marvel properties online, and are poised to unveil the first stage of that evolution by the end of 2007."
By company segment:
Licensing
Licensing Segment net sales more than doubled in Q3 2007 to $66.0 million compared to Q3 2006, primarily due to continued strength from Marvel's Spider-Man merchandising joint venture (JV) with Sony. Supported by the May 2007 release of Spider-Man 3, the JV contributed revenues of $24.2 million in Q3 2007, compared to JV revenues of $0.8 million Q3 2006. Licensing segment net sales also benefited from the settlement of various audit claims totaling $16.8 million in Q3 2007, which were predominantly recorded in the Marvel Studios division. Operating margins increased in the Licensing segment to 69% in Q3 2007 from 61% during Q3 2006 due to higher overall sales, the higher weighting of Spider-Man JV revenues and the benefit provided by the settlement of the audit claims.
Publishing
Marvel's Publishing Segment net sales increased $4.0 million or 13% to $34.9 million in Q3 2007 principally due to continued strength in the Direct and Mass Market channels and the benefit of special event publishing such as World War Hulk and Stephen King's Dark Tower series. Operating income in the publishing segment rose to $15 million with an operating margin of 43% in Q3 2007 compared to an operating margin of 42% in Q3 2006.
Toys
Marvel reported Toy Segment net sales of $22.7 million in Q3 2007, a decrease from revenues of $33.0 million in Q3 2006. The decrease was primarily due to the transition from toys produced by Marvel in 2006 to toys principally licensed to and produced by Hasbro, Marvel's master toy licensee, in 2007. Margins improved sharply in the Toy Segment in Q3 2007 to 61% from 22%, reflecting the higher-margin nature of license income recorded in 2007. This compares to Q3 2006 revenues, which were largely comprised of wholesale sales, subject to a corresponding cost-of-revenues expense.
Film Production
Marvel reported Film Production segment operating costs of $1.2 million for Q3 2007, which consist primarily of employee compensation and the expenses associated with a portion of the Marvel Studios office in California, partially offset by changes in the fair value of Canadian Dollar forward contracts related to The Incredible Hulk filming in Canada.
As usual, Marvel updated its Marvel Studios schedule, which no major changes in its upcoming films. Given it’s projections, 2008 will be another busy year for Marvel at the theaters, with Iron Man (5/2/08), The Incredible Hulk (6/13/08), and Punisher 2 all slated for release during the year.
X-Men Origins: Wolverine is slated for a 5/1/09 release.
The animated Wolverine and the X-Men is slated for a fall 2008 release, as is an animated Iron Man series, with a Hulk animated series in development. The Spider-Man animated series is still slated for a Spring 2008 launch.
Upcoming direct-to-DVD releases include Next Avengers (July 2008); Hulk Smash (October 2008), Thor (April 2009), and a yet-unnamed project slated for a September 2009 release.
Spider-Man: The Musical is listed as still being in development.
Both the Iron Man and Hulk films will see video game releases in 2008 as well from Sega.
As a result of this news, Marvel raised its financial guidance for 2007,from a revenue of $455 million to $475 million. Previously, the company had forecast a revenue of $375 million to $435 million.
Marvel today released its numbers for the 3rd quarter of 2007 and for the nine months ending September 30th, 2007. Overall, the company’s third quarter results were nearly triple that of one year ago, based largely on licensing from Spider-Man 3.
By division, Marvel saw net sales of: $66 million in licensing (compared to $28.3 million in Q3 2006) - $24.2 million accountable to Marvel’s joint venture with Sony to license Spider-Man 3; $34.9 million in publishing (compared to $30.9 million in Q3 2006); and $22.7 million in toys (compared to $33.0 million in Q3 2006). The gains allowed net income for the quarter to increase to $36.3 million (45 cents per share), compared to a net income of $13.2 million (16 cents per share) a year ago. Wall Street analysts were expecting 28 cents per share.
Also, sales were up 34% to $123.6 million compared to $92.2 million a year ago, and against a predicted $92.2 million from analysts.
From Marvel’s release:
Marvel's Chairman, Morton Handel, commented, "Marvel achieved strong operating results across all its businesses for the third quarter and nine months ending September 30, 2007. Licensing segment results benefited from strong contributions related to Spider-Man 3 consumer merchandise licensing. The publishing segment continues to benefit from strong sales of event-driven imprints such as World War Hulk and Stephen King's Dark Tower series. Finally, our toy license agreement with Hasbro yielded an improved operating income contribution in the 2007 periods, largely due to fees from Spider-Man 3-based products.
"We are excited by the progress on our Iron Man and Incredible Hulk feature films for next year and the growing retail and consumer product support for these properties. We are also focused on tapping the potential of Marvel properties online, and are poised to unveil the first stage of that evolution by the end of 2007."
By company segment:
Licensing
Licensing Segment net sales more than doubled in Q3 2007 to $66.0 million compared to Q3 2006, primarily due to continued strength from Marvel's Spider-Man merchandising joint venture (JV) with Sony. Supported by the May 2007 release of Spider-Man 3, the JV contributed revenues of $24.2 million in Q3 2007, compared to JV revenues of $0.8 million Q3 2006. Licensing segment net sales also benefited from the settlement of various audit claims totaling $16.8 million in Q3 2007, which were predominantly recorded in the Marvel Studios division. Operating margins increased in the Licensing segment to 69% in Q3 2007 from 61% during Q3 2006 due to higher overall sales, the higher weighting of Spider-Man JV revenues and the benefit provided by the settlement of the audit claims.
Publishing
Marvel's Publishing Segment net sales increased $4.0 million or 13% to $34.9 million in Q3 2007 principally due to continued strength in the Direct and Mass Market channels and the benefit of special event publishing such as World War Hulk and Stephen King's Dark Tower series. Operating income in the publishing segment rose to $15 million with an operating margin of 43% in Q3 2007 compared to an operating margin of 42% in Q3 2006.
Toys
Marvel reported Toy Segment net sales of $22.7 million in Q3 2007, a decrease from revenues of $33.0 million in Q3 2006. The decrease was primarily due to the transition from toys produced by Marvel in 2006 to toys principally licensed to and produced by Hasbro, Marvel's master toy licensee, in 2007. Margins improved sharply in the Toy Segment in Q3 2007 to 61% from 22%, reflecting the higher-margin nature of license income recorded in 2007. This compares to Q3 2006 revenues, which were largely comprised of wholesale sales, subject to a corresponding cost-of-revenues expense.
Film Production
Marvel reported Film Production segment operating costs of $1.2 million for Q3 2007, which consist primarily of employee compensation and the expenses associated with a portion of the Marvel Studios office in California, partially offset by changes in the fair value of Canadian Dollar forward contracts related to The Incredible Hulk filming in Canada.
As usual, Marvel updated its Marvel Studios schedule, which no major changes in its upcoming films. Given it’s projections, 2008 will be another busy year for Marvel at the theaters, with Iron Man (5/2/08), The Incredible Hulk (6/13/08), and Punisher 2 all slated for release during the year.
X-Men Origins: Wolverine is slated for a 5/1/09 release.
The animated Wolverine and the X-Men is slated for a fall 2008 release, as is an animated Iron Man series, with a Hulk animated series in development. The Spider-Man animated series is still slated for a Spring 2008 launch.
Upcoming direct-to-DVD releases include Next Avengers (July 2008); Hulk Smash (October 2008), Thor (April 2009), and a yet-unnamed project slated for a September 2009 release.
Spider-Man: The Musical is listed as still being in development.
Both the Iron Man and Hulk films will see video game releases in 2008 as well from Sega.
As a result of this news, Marvel raised its financial guidance for 2007,from a revenue of $455 million to $475 million. Previously, the company had forecast a revenue of $375 million to $435 million.