latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/theatrical-segment-weighs-on-paramount-as-executives-promise-stronger-2020-55646442 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Theatrical segment weighs on Paramount as executives promise stronger 2020

Virgin Media-O2 Tie Up, EC Reversal on Three-O2 to Reboot Consolidation

COVID-19 Impacts Incumbent Telco Revenues In Western Europe

Disney+ Ditches Free Trials — Will Other Big Streamers Follow Suit?

COVID-19 Pandemic Likely To Cause US Telemedicine Boom

Theatrical segment weighs on Paramount as executives promise stronger 2020

Viacom Inc. managed to beat earnings estimates and grow its Paramount studio profits in the quarter ended Sept. 30, though the company saw a sharp decline in theatrical performance, driven by some big flops.

SNL Image

For the calendar year 2019 to date, films distributed by Paramount saw net losses of $213.6 million, according to Kagan, a media market research group within S&P Global Market Intelligence. Only three of the seven releases that have exited theaters during the year landed in the black. Of those, "Rocketman" saw the most profits, at $47.1 million. Its October release "Gemini Man" was a big miss, losing $135.3 million, and the sixth installment in the Terminator franchise, "Dark Fate," could lose over $100 million, according to Variety. The theatrical film studio saw an average $30.5 million loss per film in 2019, according to Kagan, excluding "Dark Fate."

A 2017 restructuring promised a more targeted theatrical strategy, and executives projected movies like "Gemini Man" would make the film studio profitable in 2019. In calendar 2017, the movie studio saw net losses mount to $454.7 million, or an average of $37.9 million per film, according to Kagan. But the company's box office business saw profitability in 2018, up to an average of $33.0 million per title, led by "Mission: Impossible – Fallout" and horror breakout "A Quiet Place."

Executives on a Nov. 14 earnings call promised a more successful slate in its 2020 fiscal year, led by a sequel to "A Quiet Place," a return to the "Top Gun" franchise and movies based on the SpongeBob SquarePants and Sonic the Hedgehog intellectual property. The company will boost its film slate to 17 films in the 2020 fiscal year from 11 in the 2019 fiscal year.

Adjusted operating income at the Paramount filmed entertainment unit was $54 million in Viacom's fourth quarter ended Sept. 30, up 42% year over year, despite a 14% drop in revenue. For the year ended Sept. 30, Paramount revenue was up 1% to $3.08 billion and adjusted operating income was $78 million. However, with a 72.1% quarterly decline in theatrical revenues and the big losses on films during the quarter, executives cited the theatrical film business as a significant drag on Paramount results.

SNL Image