November
9 Taking Stock of Marvel

Marvel's reported third-quarter results with a drop in revenues and profits that caused the company's stock price to fall. The company announced a $250 million share repurchase program and says it expects 2006 to be a difficult year for toys and licensing.

Marvel's stock price slipped 22% to close at $14.06.

Overall net sales for the quarter were down 40% from $135.1 million to $81.1 million versus the same quarter last year, with net income down 32% from $34 million to $23.3 milion in quarter to quarter comparisons. Year to date net income was down 19% versus 2004 from $94.6 million to $76.7 million.

"Despite the near-term challenges, the management team and board remain confident in the long-term power of Marvel's business model, which will generate high levels of cash in coming years," Marvel Chariman Morton Handel said in the report. The company appears to be looking to 2007, when "Spider-Man 3" and "Fantastic Four 2" are set to debut within months of each other.

Licensing and toy revenues were down from 2004. The "Fantastic Four" movie did well at the b.o. but was not in the same league as last year's "Spider-Man 2." FF movie toy sales totaled $25 million for the quarter, for a total of $66 million for the year

Marvel's publishing efforts saw net sales increase 14% on strong trade paperback sales in bookstores and direct market channels. Net sales were $25.8 million, up from $22.6 million for 3rd quarter 2004; year to date net sales is $69.1 million, up from $63.9 million last year.

Marvel Studios' upcoming slate of features films for 2006 is "X-Men 3," "Ghost Rider," and "The Punisher 2," which has a writer attached and is targeting a fall 2006 release. In addition to "Spider-Man 3" at Sony and "Fantastic Four 2" at Fox, additional pics include "Silver Surfer" and "Wolverine" at Fox, "Deathlok" at Par, "Hulk 2" and "Namor" at Universal and "Black Widow" at Lions Gate. "Thor" and "Iron Man" pics are seeking studios.

The studio also has ten pics it will produce under its credit deal with Merrill Lynch; four direct-to-DVD animated pics at Lions Gate, including two "Ultimate Avengers" pics, "Iron Man" and "Doctor Strange." The studio is working with Moonscoop on a Fantastic Four animated series, and live-action TV projects in development include "Alter Ego," "Blade" and "Skrull Kill Krew."

'HELLBOY' CARTOONS: IDT is producing an animated DVD feature and TV series based on Mike Mignola's "Hellboy" comicbook for debut in late 2006 or early 2007. The company is in talks with cable nets for the series. Pic will be animated by Film Roman  and feature voice talent from the live-action feature film, including Ron Perlman and Selma Blair. That pic's director, Guillermo del Toro, and comicbook creator Mike Mignola will consult as creative producers. The animation will be of the traditional 2-D technique instead of 3-D CGI.

WIZ NUMBERS: Wizard World has announced attendance at its Texas show as 10,500, down slightly from last year's figure of 12,000. Many at the show attributed the decline to NASCAR being in town the same weekend. The company says total attendance for all five Wizard World shows in 2005 — Los Angeles, Philadelphia, Chicago, Boston and Texas — was upwards of 125,000.