Marvel Entertainment Q3 2008 Earnings Call Transcript

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2008-11-04 08:12:09.0

Tags: Revenue, Call Transcript, Earnings, Entertainment, Operational Accounting, Finance, Seeking Alpha, Revenue, Call Transcript, Earnings, Entertainment, Operational Accounting, Finance, Seeking Alpha, Marvel Entertainment Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question comes from the line of Drew Crum with Stifel Nicolaus.

Drew Crum - Stifel Nicolaus

Good morning, everyone. I just want to get some additional color on your guidance for 2008 and specifically on the licensing and publishing businesses for the fourth quarter. I believe your previous guidance as far as revenue was concerned was 260 to 270 and I guess if you assume what you have given us for film production, it would imply perhaps some degradation in either licensing and/or publishing, so I’m just looking for some additional color there.

Kenneth West

In fact, there has been no degradation that’s been noticed to date, other than within the publishing segment of a slight downturn in advertising in custom trade publishing. But other than that, licensing continues as anticipated, no changes to that whatsoever and we are very happy with the contribution of the films in ’08.

Drew Crum - Stifel Nicolaus

So Ken, it’s still 260 to 270 that’s your revenue assumption for ’08?

Kenneth West

With respect to which -- are you talking about a specific --

Drew Crum - Stifel Nicolaus

With respect to the licensing segment.

Kenneth West

Roughly, in general.

Drew Crum - Stifel Nicolaus

Okay, fair enough. And then your expectations for Hulk, I presume you still anticipate this being a profitable film?

Kenneth West

Yes, both films, both profitable.

Drew Crum - Stifel Nicolaus

Okay, and David, can you provide any color as far as the number of DVD units you’ve sold for each title?

Matt Finick

We would prefer to talk in terms of sales and revenues, so including rental figures, total worldwide sell-through for Iron Man through November 2nd was about $175 million in revenues and for Hulk, it was roughly $69 million in revenues. And I would remind everyone that these figures exclude the presold territories such as Germany, France, Australia, and Japan and Spain, and that also domestically Iron Man DVD shipped on September 30th and Hulk on October 21st, so you have more data for Iron Man.

Drew Crum - Stifel Nicolaus

Okay, thanks, that’s helpful. And then last question, your expectations for cash at year-end for 2008?

Kenneth West

Approximately -- well, well in excess of $100 million, so we are sitting very comfortably with a very nice position.

Drew Crum - Stifel Nicolaus

Okay. Thanks, guys.

Operator

Your next question comes from the line of Todd [Schwartzman] from Sidoti.

 

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