Time Warner Inc. : Warner Bros. UK Delivers Record Box Office Grosses to be Crowned UK's Number One Film Studio for Second Consecutive Year

January 6, 2012

WARNER HOME VIDEO UK ALSO NAMED NUMBER 1 DISTRIBUTOR FOR SECOND YEAR RUNNING

London - For the second consecutive year, Warner Bros. has been named the UK's number one film studio with record box office revenues, it was announced today by Josh Berger, President & Managing Director, Warner Bros. UK, Ireland & Spain.

Fuelled by the box office performances of, among others, Harry Potter and the Deathly Hallows - Part 2 (£73.1m), The Hangover Part II (£32.8m), Sherlock Holmes: A Game of Shadows (£18.5m to date ), Horrible Bosses (£10.5m), Yogi Bear (£9m), Contagion (£5.5m) and Midnight in Paris (£2.6m) Warner Bros. outperformed its previous record year of 2010 with a gross of £205.8 million - some 2% up on last year - to claim top spot in the UK theatrical distributor rankings and an 18.04% market share.

Making a considerable contribution to the company's 2011 success was the eighth and final movie in the Harry Potter franchise, Harry Potter and the Deathly Hallows - Part 2, a film whose July premiere was the biggest the UK has ever seen, witnessed by more than 35,000 fans in and around London's Trafalgar Square and at regional premieres across the UK, with many millions more watching online and on TV the world over.

The movie went on to deliver not only the biggest opening three day weekend in the UK and Ireland ever, but also the two biggest single days in UK and Irish box office history (Friday and Saturday with £9.48m and £7.62m respectively), as well as the biggest Sunday ever (£6.64m) and the biggest 3D weekend gross of all time in the UK and Ireland.

Josh Berger said, "Being crowned the UK's number one film distributor with record box office grosses for a second consecutive year is an absolutely stunning achievement when you consider the heavyweight competition we faced and the continuingly challenging economic climate we're all operating in. Our success is reflective of the continuing leadership Warner Bros. enjoys here in the UK. From films to home entertainment, TV shows to video games and licensed products, the company is leading the way thanks to the remarkable content it produces year in year out, and the talented teams and industry colleagues who bring these brilliant products to market."

The Theatrical success was replicated by Warner Bros.' Home Entertainment division, Warner Home Video, which became the UK's number one home entertainment studio for the second time in two years with a value market share of 15.5% and a volume market share of 14.8% .

Helping to achieve this was a series of number one performances including the number one Blu-ray studio (18.1% market share), the number one studio for new release theatrical (20% market share), the number one non-theatrical family entertainment studio (17.1% market share), the number one US TV studio (15.5% market share) and the number one studio in Ireland (15.4% market share).

Standout performers were new release films such as Harry Potter and the Deathly Hallows - Parts 1 and 2, The Hangover Part II, Green Lantern and Due Date; TV franchises such as True Blood, The Big Bang Theory and The Vampire Diaries; and family entertainment titles such as Scooby Doo! Curse of the Lake Monster and Ben 10: Ultimate Alien.

John Stanley, SVP & Managing Director, Warner Home Entertainment Group UK & Eire, commented, "While 2011 will forever be remembered for the home entertainment release of not one but two Harry Potter movies, which have collectively sold 5.5 million units to date, it was also a year that saw us enjoy incredible success right across our portfolio. The combined results are indicative of the support we've received from our retail partners and the passion and dedication of our market-leading team, which delivered so much last year."

Added to the two number one crowns in 2011 was the ongoing success story of Warner Bros.' International Television business. The division continues to be the number one supplier of US TV and movie product to the UK TV and Digital Distribution markets. Included in its portfolio are the hit shows The Mentalist (Channel 5), The Vampire Diaries (ITV2), The Big Bang Theory (E4), Fringe (Sky 1), Friends, Mike and Molly and Two and a Half Men (all Comedy Central), and the upcoming launches Two Broke Girls (Channel 4) and Dallas (Channel 5). It is also a local producer of significant standing via Shed Media, the company responsible for the International Emmy Award-winning shows Gareth Malone Goes to Glyndebourne and World¹s Strictest Parents as well as the UK debut of the hit US format, The Bachelor.

In addition, Warner Bros.' video games business in the UK, Warner Bros. Interactive Entertainment became a top ten games publisher in 2011 thanks to break-out hits such as Batman: Arkham City, which has sold 655,000 units to date and been nominated for nine British Academy Videogame Awards. Warner Bros. Consumer Products also enjoyed considerable growth, firmly consolidating its position as the number two licensed products studio in the UK market.

2012, meanwhile, promises to be another strong year for Warner Bros. in the UK. Its movie slate includes the eagerly-awaited The Dark Knight Rises and The Hobbit: An Unexpected Journey, as well as four titles produced in the UK, Wrath of the Titans, Dark Shadows, Gravity and Jack the Giant Killer.

The company is also looking forward to the much anticipated opening of Warner Bros. Studio Tour London - The Making of Harry Potter at the end of March. Following that, its first ever UK studio, Warner Bros. Studios Leavesden, a state- of-the-art, permanent UK film production base will further Warner Bros.' long association with, and commitment to, the UK film industry, when it opens later in the summer.

Berger concluded, "With the opening of Warner Bros. Studios Leavesden and a burgeoning UK film, TV and games production slate, 2012 represents a watershed moment for the company. Already a creative organisation of considerable stature, Warner Bros. will undoubtedly be making a greater contribution to the UK's economic and cultural landscape than ever before."