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This Drove Time Warner’s Top-Line Growth in 3Q17



Theatrical product unit performance

In 3Q17, Time Warner’s (TWX) theatrical products unit, which is part of its Warner Bros segment, reported $1.69 billion in revenues—up 5.6% YoY (year-over-year). This units revenues, which contributes nearly 21% of the company’s total revenues, were primarily driven by strong growth in the home video and television licensing businesses.

The theatrical product business has grown at a CAGR (compound annual growth rate) of 1.4% over the past five quarters.

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Despite the 2.8% YoY decline in the film rental business, home video and television licensing revenues grew 15.2% and 15.7%, respectively, in 3Q17. The releases of hit movie titles from prior quarters, such as Wonder Woman and Kong: Skull Island, helped the company boost its sales in the home video unit.

In 3Q17, Warner Bros released four films, including Christopher Nolan’s Dunkirk, compared with six releases in 3Q16. The final quarter of 2017 may see strong theatrical product revenue growth, mainly driven by two It and Justice League. Both combined collected more than $1 billion in worldwide ticket sales.

Warner Bros’ market share

According to the Numbers, a movie data and research service provider, in 2017, Warner Bros has distributed 17 movies to date, while Universal Pictures (CMCSA), Twentieth-Century Fox (FOXA), Columbia Pictures (SNE), and Paramount (VIAB) have released 13, 11, 22, and 10 films, respectively, during the same period.

In 2017 to date, Warner Bros has dominated the domestic box-office collections with a 20.4% market share, followed by Walt Disney (DIS), Universal, and Fox, with 18.3%, 14.9%, and 12.3%, respectively.


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