Professional Motion Picture Production and Distribution NEWS

Driven by the fourth quarter releases of “Skyfall” and “The Hobbit: An Unexpected Journey,” MGM Holdings Inc., the parent of Metro-Goldwyn-Mayer Inc., today reported revenue of $1.38 billion, Adjusted EBITDA of $286 million and net income of $129 million for the calendar year ending 2012.

Chairman and Chief Executive Officer Gary Barber said, “I am very pleased with our strong results for 2012, reinforcing my optimism about the future of MGM. With back-to-back films each grossing worldwide box office in excess of $1 billion, MGM now has 2 of the top 15 films in box office history. Our unprecedented success and extraordinary financial performance this past year were made possible by the contributions and strength of our team at MGM and our partners around the world.”

Business Highlights
• 2012 Revenue Up 97% Over 2011
• 2012 Adjusted EBITDA Up 48% to $286 Million
• MGM Becomes First Studio to Have Back-to-Back $1 Billion Box Office Films with “Skyfall” and “The Hobbit: An Unexpected Journey”
• “Skyfall” Marks Biggest James Bond Release of All Time; Biggest Film Ever in the UK

Results of Operations
Total revenue for the year ended December 31, 2012 was $1.38 billion, an increase of $681 million, or 97%, as compared to $699 million for the year ended December 31, 2011. Worldwide theatrical revenue increased $661 million over the prior year, led by the fourth quarter franchise film releases of “Skyfall,” the biggest James Bond release of all time, and “The Hobbit: An Unexpected Journey.” Worldwide television licensing revenue of $395 million increased $23 million over the prior year despite the lack of comparable new release content moving through initial television windows in 2012. Worldwide home entertainment revenue of $195 million increased $1 million over the prior year. Although no new titles were released in the home entertainment market during 2012, total home entertainment revenue eclipsed the prior year mark due to a strong 2012 fourth quarter which generated $96 million of revenue, primarily reflecting the strong performance of strategic James Bond 50th anniversary promotions.

2012 Adjusted EBITDA was $286 million, an increase of $93 million, or 48%, over the prior year. Adjusted EBITDA was driven higher by our significant revenue growth which outpaced increased operating expenses, mainly film cost amortization expenses, and higher distribution and marketing expenses, primarily advertising expenses related to the theatrical marketing campaigns for “Skyfall” and “The Hobbit: An Unexpected Journey.”

Resources:
www.MGM.com

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