MGM Revenues Fall, but Profits Rise on TV Strength, ‘The Hobbit’

The lack of a James Bond picture caused revenue to fall at Metro-Goldwyn-Mayer in 2014 even as the studio managed to record record profits.

Revenue at the entertainment company behind 007 and “The Hobbit” hit $1.44 billion, down 5.8% from $1.53 billion in the previous year. Net income at the company topped out at $156 million for the calendar year ending Dec. 31, up 27% from $122.2 million in 2013.

“The continued strength and performance of our new content as well as that of our library assets, across all platforms, further supported by strategic acquisitions and partnerships have helped MGM earn its highest annual profits in its modern history for the second consecutive year,” said MGM chairman-CEO Gary Barber in a statement.

Operating cash flow reached $373 million, up 33% from the previous calendar year, while adjusted EBITDA rose 10% to $363 million. Fourth-quarter earnings surged 45% to $42 million, and adjusted EBITDA doubled to $114 million.

Profit growth stemmed from increased profitability from joint ventures, including its Epix pay television network, as well as from its TV programming.

In television, MGM scored with the critically lauded “Vikings.” The company also launched a joint venture with Mark Burnett, Roma Downey and Hearst Productions to field faith-based programming, dubbed United Artists Media Group. That 55% stake in the joint venture is already contributing important revenues, adding $25.5 million to its results.

On the film front, MGM released the final installment of “The Hobbit” to more than $950 million globally and had a summer hit with “22 Jump Street,” which opened in June and grossed $330 million worldwide. “RoboCop,” its update of the 1980s genre classic, and “Hercules” were less successful at the box office. The most recent earnings report does not include “Hot Tub Time Machine 2,” its February film flop.

This coming year brings the release of a new Bond film, “Spectre,” as well as a “Poltergeist” remake and the “Rocky” spinoff “Creed.”

MGM is a privately held company, but it has been making its financial results public since it emerged from bankruptcy in 2010.

Dave McNary contributed to this report.

More Film

  • Les Arcs Film Festival

    Les Arcs European Film Festival's Industry Village Kicks Off with Strong Roster

    The lack of a James Bond picture caused revenue to fall at Metro-Goldwyn-Mayer in 2014 even as the studio managed to record record profits. Revenue at the entertainment company behind 007 and “The Hobbit” hit $1.44 billion, down 5.8% from $1.53 billion in the previous year. Net income at the company topped out at $156 […]

  • Star Wars: The Last Jedi

    Box Office: 'Star Wars: The Last Jedi' Rockets to $215 Million Opening Weekend

    The lack of a James Bond picture caused revenue to fall at Metro-Goldwyn-Mayer in 2014 even as the studio managed to record record profits. Revenue at the entertainment company behind 007 and “The Hobbit” hit $1.44 billion, down 5.8% from $1.53 billion in the previous year. Net income at the company topped out at $156 […]

  • Disney-Fox Deal Sets Up Scramble for

    Disney-Fox Deal Unleashes Flood of Free-Agent Executives, Talent

    The lack of a James Bond picture caused revenue to fall at Metro-Goldwyn-Mayer in 2014 even as the studio managed to record record profits. Revenue at the entertainment company behind 007 and “The Hobbit” hit $1.44 billion, down 5.8% from $1.53 billion in the previous year. Net income at the company topped out at $156 […]

  • Anita Hill

    Anita Hill Chairs Hollywood Anti-Sexual Harassment Commission Formed by Top Execs

    The lack of a James Bond picture caused revenue to fall at Metro-Goldwyn-Mayer in 2014 even as the studio managed to record record profits. Revenue at the entertainment company behind 007 and “The Hobbit” hit $1.44 billion, down 5.8% from $1.53 billion in the previous year. Net income at the company topped out at $156 […]

  • Warren Beatty

    Arnon Milchan Sues Warren Beatty Over 'Rules Don't Apply' Flop

    The lack of a James Bond picture caused revenue to fall at Metro-Goldwyn-Mayer in 2014 even as the studio managed to record record profits. Revenue at the entertainment company behind 007 and “The Hobbit” hit $1.44 billion, down 5.8% from $1.53 billion in the previous year. Net income at the company topped out at $156 […]

  • Oscar Isaac Addams Family

    Oscar Isaac in Talks to Voice Gomez Addams in Animated 'Addams Family' Movie

    The lack of a James Bond picture caused revenue to fall at Metro-Goldwyn-Mayer in 2014 even as the studio managed to record record profits. Revenue at the entertainment company behind 007 and “The Hobbit” hit $1.44 billion, down 5.8% from $1.53 billion in the previous year. Net income at the company topped out at $156 […]

  • Jennifer Lawrence

    Publicists for Jennifer Lawrence, Daisy Ridley, Amy Adams Form New Firm

    The lack of a James Bond picture caused revenue to fall at Metro-Goldwyn-Mayer in 2014 even as the studio managed to record record profits. Revenue at the entertainment company behind 007 and “The Hobbit” hit $1.44 billion, down 5.8% from $1.53 billion in the previous year. Net income at the company topped out at $156 […]

More From Our Brands

Access exclusive content