Astute analyst probed management for validity of the 35% income or $42 million from "Rise of the Guardians" TV in the 3rd Quarter. I would have to say this number is extremely large, and definitely captured my skepticism as well. Management could not give a clear answer, but instead appeared perturbed and unclear. For a movie that had poor cinematic and rental numbers but MAGICALLY did wonders on TV??? TV? did anyone see any "rise of the guardians" on any TV program?
Many analysts expected this quarter, even under the best estimates, to be nonprofit, and even a loss. The question still remains where and how did they get this $42 mil from TV rise of the Guardians. Without this astounding 35% of Q3 contribution, the quarter would have been a huge loss.
Will this come back in haunt them later? That remains to be seen.
It looks like they tried to pull in revenue from the future quarters, specifically Q4 of 2013 and Q1 of 2014. Usually the TV Rights and Home Entertainment (DVD / Digital) are very lucrative. I usually assume they make around $50 million from TV rights and $50 million from DVD sales per movie.
They probably negotiaed the TV right, but the movie probably won't air until closer to the Christmas holiday.
I didn't get a chance to list to the confernece call or read the transcipt, but it spund like they added new workding to the "Turbo Will be Profitable" statement from Q2.
It seems like now the CFO is saying that Turbo will be profitable with TV, Home Entertainment, and Merchandise.
It seems a little misleading! The box office for Turbo doesn't appear to be profitable. Are they saying that they are going to use some of the TV and home entertainment revenue to offset the marketing / distribution cost of FOX?
It seems like that could eat into future revenue in Q4 of 2013 and Q1 of 2014.