MGM reports strong results thanks in part to 'Skyfall'
The record breaking performance of the latest James Bond film 'Skyfall' has helped MGM further with its latest revenue announcements thanks to its strong home video sales and television rights deals.
On an investor conference call today, Metro Goldwyn Mayer studios reported revenue in the second quarter was up 164 percent to $339 million, compared to the same period in 2012.
Revenue for the first six months was a spectacular $820.6 million, up from $307.8 million in the same period of 2012, MGM CEO Gary Barber announced Wednesday.
MGM Holdings has now reduced its bank and other debt from $371 million at the end of 2012 to only $97 million currently, while the company is now sitting on $140.7 million in cash. The sent the thinly traded stock shooting up nearly 4 percent today in private market trading to $58.50 per share.
âMGM continues to post strong results driven by home video and co-produced films,â says Azarbad. âThe earning power of the film slate and library are driving a tremendous amount of free cash flow for the company with a net debt reduction of $137 million in just the 2nd quarter. The fruits of Skyfall and the Hobbit will continue for quarters to come as they move through the various television windows.â
There was no mention of Bond 24 on the call, but in earlier prepared statements, MGM confirmed the team of Mendes, Logan and Craig were returning for a 2015 release.
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