Analyst: 'Cowboys & Aliens' May Be Only 3Q Movie Write-Down As Overseas Ticket Sales Grow

Movie moguls usually have to grit their teeth during the media company quarterly earnings season as they begrudgingly acknowledge the bombs they had to write off. But the 3Q reports that will begin to come out in two weeks could be different, RBC Capital Markets analyst David Bank says this morning. Only one film from the quarter — DreamWorksCowboys & Aliens — “looks likely to be a write-down.” And the outlook for 4Q is encouraging due to “the strong existing slate, combined with the likelihood of surprise ‘tentpoles’ and … relatively easy comps” vs 4Q 2010. He’s particularly impressed by the soaring returns from overseas, where the number of movie theaters is growing. He notes that this year major films are generating more than 1.65 as much from international box offices as they do from domestic, up from 1.45 last year. Bank says that Hollywood is zeroing in on the right investment formula: Spend big on “culturally neutral action/adventure movies” that play well abroad — and slash budgets for comedies that often don’t travel well. (more…)

This article was printed from https://deadline.com/2011/10/analyst-cowboys-and-aliens-may-be-the-only-3q-movie-write-down-as-overseas-ticket-sales-grow-182391/