MAIN NEWS HEADLINES
May 8 – May 15, 2008 Edition
Sales Drop 4%
In First Quarter
Marvel Publishing, one of the world’s largest comic book publishers and a division of Marvel Publishing, reported a net sales declined by $1.0 million or 4% to $26.5 million in the first quarter of 2008. The company attriobuted the decline principally to the timing of major publishing initiatives. Q1 2008 net sales reflected a decline in comic book sales within the direct channel and lower advertising and custom sales, offset in part by continued strong growth in the Mass Market channel. The year-over-year decline in direct channel sales principally reflects strong sales of high profile titles Civil War and The Death of Captain America in the year ago period, versus no comparable specialty titles in Q1 2008.
Operating income in the Publishing segment declined by 14% on a year-over-year basis to $9.9 million in Q1 2008 with an operating margin of approximately 37% compared to approximately 42% in the prioryear-period. Based on its planned slate of publishing initiatives, including the release of the Secret Invasion series in late Q2 2008, Marvel expects its Publishing segment to return to traditional margins for the full year 2008, contributing estimated net sales of approximately $130M 135M in 2008 and to generate an operating margin of approximately 41% – 43%.
About Marvel Entertainment, Inc.
With a library of over 5,000 high-profile characters built over more than sixty years of comic book publishing, Marvel Entertainment, Inc. is one of the world’s most prominent character-based entertainment companies. Marvel utilizes its character franchises in licensing, entertainment (via Marvel Studios), and publishing (via Marvel Comics), with emphasis on feature films, home DVD, consumer products, video games, action figures and roleplaying toys, television and promotions. Marvel’s strategy is to leverage its franchises in a growing array of opportunities around the world. For more information visit www.marvel.com.