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Why 'Wonder Woman' Could Boost Time Warner

Jun. 05, 2017 4:32 PM ETTime Warner Inc. (TWX)WMT, MAT, DIS9 Comments
Motek Moyen profile picture
Motek Moyen


  • TWX’s price might benefit from the wonderful box office performance of Warner Brothers’ Wonder Woman movie.
  • Warner Brothers never had a movie last year that grossed $1 billion worldwide.
  • Wonder Woman could gross $1 billion in ticket sales this year. Its first weekend gross is already at $223 million, $122.5 million of which came from 55 international markets.
  • My fearless forecast is that Wonder Woman will beat Kong: Skull Island’s worldwide gross of $565.5 million before June ends.
  • Wonder Woman’s worldwide success could help Warner finance more DC superheroes-themed movies.

Warner Bros. was the largest contributor to Time Warner’s (NYSE:TWX) global revenue in FY 2016. This was in spite of Warner Bros. not having a billion-dollar grossing movie last year. Well, Warner’s Wonder Woman movie just did a wonderful opening weekend worldwide gross of $223 million. Domestic gross was $100.5 million, and it took in $122.5 million from 55 other countries.

China contributed $38 million, $8.5 million from South Korea, $8.4 million from Mexico, $8.3 million from Brazil, and $7.3 million from the U.K.

After its first weekend run, Wonder Woman is already the no.18 top-grossing movie of 2017. After three more days, I expect this movie to be among the top-grossing films of 2017. Further, Wonder Woman is the first female hero movie to gain $100 million opening weekend gross. This uniqueness could help it become one of the fastest movies to hit $1 billion in worldwide sales.

(Source: Box Office Mojo)

Wonder Woman’s estimated production budget was $120 million, less than half the $250 million budget of Warner’s Batman v Superman: Dawn of Justice. Wonder Woman’s success this year definitely helps Warner’s bottom line.

My fearless forecast is Wonder Woman will beat the $565.6 million worldwide gross of Warner’s Kong: Skull Island before this month ends. Wonder Woman could even hit the $500 million mark by June 17. The first two weeks’ ticket sales are very important for Time Warner. Movie producers usually take 75-80% of tickets sales during the first two weeks.

Going forward, Wonder Woman could be a billion-dollar grossing film just this year. If this projection proves true, Wonder Woman could save TWX’s anemic +2.75% YTD performance this year.

Barron’s was confident enough to say Wonder Woman could lift TWX’s YTD return to 20% .

(Source: Google Finance)

Barron’s bold forecast is realistic. Warner Bros. accounted for $3.35

This article was written by

Motek Moyen profile picture
Motek Moyen is a financial analyst, technician, and Adobe multimedia content creator. He studied Mathematics, Commercial Advertising, and Computer Science in the 1990s. He does not trade stocks.

Analyst’s Disclosure: I am/we are long DIS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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