Warner reports second quarter games growth
Mortal Kombat and Lego Pirates Of The Caribbean helped drive an increase in sales at Time Warner’s Filmed Entertainment division – which houses film, television, home video and games – during the second quarter ended June 30. Sales grew 13 per cent year-over-year to $2.8 billion, “led by growth in video game revenues, due mainly to the releases of Mortal Kombat 9 and Lego Pirates Of The Caribbean: The Video Game”, the company said in a statement. However, operating income declined eleven per cent to $154 million, “as higher revenues were more than offset by increased pre-release print and advertising expenses, higher theatrical film valuation adjustments and increased overhead costs related in part to recent acquisitions, as well as higher restructuring and severance costs”. Company-wide revenues rose ten per cent during the three months to $7 billion, while net income increased from $562 million last year to $638 million.