Marvel Entertainment revealed lower net sales for its third quarter (ending September 30th 2009) - reflecting a lower level of film activity and related licensed merchandise.
The company reported net sales for the period of $105.7 million and net income of $20.4 million. This is compared to net sales of $182.5 million and net income of $50.6 million in Q3 2008.
The anticipated year-over-year decline in net sales and net income reflects $65 million in lower film revenues in Q3 2009 compared to the prior year period, as well as lower licensing segment net sales related to last year's Iron Man and The Incredible Hulk films, plus the Spider-man merchandising joint venture.
Within the licensing segment, net sales were $48.9 million, compared to $58.1 million for the prior year period. Domestic consumer products pulled in $25.6 million, while international consumer products accounted for $15.8 million. The total also reflects a contribution of $6.3 million from Hasbro ($3.8 million within domestic consumer products and $2.5 million in international consumer products).
Licensing segment operating income also declined in Q3 2009 to $37.5 million.
"Despite the absence of any Marvel Studios feature film releases in 2009, Marvel continued to deliver solid operating performance across all our operating segments," said chairman Morton Handel. "Anticipation for the high profile Iron Man 2 feature film continues to build, and we are focusing efforts on the film's May 2010 release and the related licensing opportunities."
Handel also spoke about the proposed acquisition of Marvel by The Walt Disney Company: "Disney is the ideal home to nurture and further develop the distinctive Marvel brands because of its ability to extend the breadth, diversity and global reach of Marvel-branded entertainment and consumer products. We continue to expect this transaction will close by calendar year end."