James Bond, Hobbit Lift MGM Earnings, Share Repurchase Boosted

MGM Caryn Mandabach Productions
Courtesy of MGM

Strong results reported in films, TV

James Bond and “The Hobbit: An Unexpected Journey” have boosted profits for MGM Holdings Inc., the parent company of Metro-Goldwyn-Mayer, which reported sharply higher third quarter earnings of $17 million, up $23 million from the year-ago period.

In a bullish sign, MGM also disclosed its board has also doubled the size of its share repurchase plan to $150 million. The Lion had unveiled the repurchase plan in September.

Adjusted EBITDA more than doubled to $64 million and third-quarter profits posted a gain compared to the 2012 quarter after excluding a one-time benefit from sale of its Latin American pay-TV assets to Chellomedia last year. MGM has seen higher earnings this year in the wake of strong performances by James Bond film “Skyfall” and the first “Hobbit” film.

Third-quarter revenues gained 43% to $243 million. TV television licensing revenues jumped 84% to $76 million, led by initial pay TV and subscription VOD revenue for “Skyfall” worldwide and “The Hobbit: An Unexpected Journey” internationally.

“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.” said MGM topper Gary Barber added. “Our Board of Directors is displaying its continued confidence in the company and its prospects by increasing the authorization under our stock repurchase plan by $75 million to an aggregate of $150 million and the Board will continue to assess the size of its repurchase plan over time.”

Shares of privately held MGM Holdings, which are traded over the counter, rose $4.25 to an all-time high of $66 on Thursday.

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  1. JOE S HILL says:

    How Droll! Metro Goldwyn Mayer today,is so,,redundant! so far,all they’ve done since emerging from their
    Chapter 11 situation,is a few remakes-Bad ones,at that!-all Sony co-financed,film partners to a few movies,and all this hype about their “SKYFALL” Bond movie,and their deal with Warner Bros. on “THE HOBBIT”,,that’s all they got? this Gary Barber guy,sure seems to think he’s riding high-but then,most corporate executives have their views-as usual. but MGM today is practicly next to nothing! all they have
    is their MGM/UA Film and TV library,a few minor things (“VIKINGS”,TEEN WOLF”) and of course,their
    co-financing with Sony,especially with the current remakes (“CARRIE”,”ROBOCOP”) and other things,
    not entirely known at this point. at some point,will they allow United Artists to resume its operations?
    whatever they decide to do,it better be really big,and very bold,because i just don’t see anything really
    too different or great about MGM these days-unless Sony continues to co finance them,with other things!

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