Mojoman

Marvel Enterprises: The Movie's Just Started

Would you say your estimates for the Iron Man franchise or more specifically the 1st Iron Man film of $250mm are in line with Marvel's just released announcement that they are upping their Marvel Studios revenue projections for 2008 from $65-$80mm to $125-$140mm? In other words the projected revenue increase- is it in line with your $250mm profit estimate? (Marvel has been historically conservative with its revenue and earnings projections. Your method of simply taking other "equivalent" box office grossing movies then using their earnings as a reasonable estimate for Iron Man may be more accurate. Still with the way film financing and earnings remains somewhat cloudy (I don't really know how box office translates into bottom line dollars for the major studios. The timelines of incoming cash flows, upfront costs, and profit sharing with distributors never seems fixed so its hard to get an firm grasp of it. So it could be somewhat of a guesstimate. Specific to anyone film what do think the standard error of your $250mm number is? $250mm +/- what? The breakdown? $50mm is from added licensing?) How certain are you of your bottom line profit expectation from Iron Man? Are Marvels new projections simply now coming in line with yours? Or is this an earnings surprise not merely a timing surprise? (I believe many thought the new revenues for Iron Man wouldn't be booked til 2009.) Great read BTW. IMO.