Marvel Entertainment’s riding the financial rollercoaster unavoidable to small film studios. Without a major film release, the company posted a 38 percent drop in profits and a 26 percent decrease in revenues.
That’s part of the deal, seen at other studios such as DreamWorks Animation: When a hit movie debuts, the revenues ‘ and profits ‘ soar. When there’s no release, they drop.
Marvel has no movies of its own being released in 2009 after a one-two punch last year of Iron Man and The Incredible Hulk. Those films still boosted Marvel’s bottom line through DVD and pay-TV revenues, but Marvel’s next release is not due until next summer, when Iron Man 2 hits. The studio has a steady stream of movies lined up for the years that follow, with Thor having been cast and the studio moving ahead with Captain America and Avengers movies.
The overall rosy picture comes from the company posting a quarterly profit of $29 million on revenue of $116 million for the quarter ending June 30. The company’s stock hit a record high Tuesday of $41.74.
The company’s original business of comic book publishing was steady over last year sales wise, but took a hit on profits of about 7 percent due to a soft advertising market.