Marvel Entertainment Inc. (MVL), which is being bought by Walt
Disney Co. (DIS), reported third-quarter earnings slumped 60% on
lower film revenue, as well as lower licensing sales related to
last year's "Iron Man" and "Incredible Hulk" films.
On Aug. 31, Disney, the largest U.S. media company by market
value, said it agreed to pay $4 billion for Marvel, the creator of
comic-book characters Spider-Man, the X-Men and thousands of
others.
Marvel last month said it wouldn't provide a financial outlook
for 2009 or next year given the proposed acquisition. In August,
the company had raised its 2009 earnings and sales forecast, citing
a stronger-than-expected performance in the first half.
The company Tuesday posted a profit of $20.4 million, or 26
cents a share, down from $50.6 million, or 64 cents a share, a year
earlier. Net sales tumbled 42% to $105.7 million, on a lower level
of film activity and related licensing.
Analysts polled by Thomson Reuters expected, on average,
earnings of 24 cents on revenue of $93 million.
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%.
Operating profit was down for licensing and publishing, while film
production swung to a loss.
Chairman Morton Handel said the results were strong, despite the
absence of any Marvel Studios feature film release in 2009. He
added the company was focusing on licensing opportunities tied to
next year's release of "Iron Man 2," as well as development on the
company's "Thor," "Captain America" and "the Avengers"
projects.
About 7% of Marvel's $676 million of revenue last year came from
toys, down from more than 70% in 2000, The Wall Street Journal
reported. The company's business model has shifted rapidly in
recent years. Last year was the first year the company financed its
own movies, which brought in $255 million during 2009 alone--more
than the company's entire revenue in 2000. Licensing has grown for
Marvel, from 8% of revenue in 2000 to 43% last year.
Shares of Marvel closed Monday at $50.01 and were inactive in
premarket trading.
-By John Kell and Jenny Park, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com
