From 'Iron Man 3' to 'Hangover III': The Profit Breakdown of May's Blockbusters

This story first appeared in the June 14 issue of The Hollywood Reporter magazine.

After a rocky winter and spring, the North American box office boomed in May, with revenue reaching $1.14 billion to surpass the record $1.04 billion earned in 2011. Heading into the month, revenue for the year was down a troubling 12 percent over 2012. Now, the gap is 7 percent.

The bonanza was led by global blockbusters Iron Man 3 and Fast & Furious 6. But they weren't the only profit-generators. Star Trek Into Darkness has held in especially well, while The Great Gatsby exceeded expectations. Even The Hangover Part III will make money.

All of this is great news for Hollywood, considering the staggering amount of money it takes to make and market a summer tentpole. Numerous studio insiders tell THR that marketing a film worldwide can now cost $175 million.

Below is a glimpse at the financial health of the May tentpoles.

Iron Man 3 (Disney/Marvel Studios)

Budget/marketing: $375 million
Projected global gross: $1.2 billion

Revenue analysis: May's biggest grosser is on track to generate profits upward of $400 million for Marvel and Disney, even after gross participants -- including Robert Downey Jr. -- take their fees, along with the $90 million or so owed Paramount because of its previous distribution deal with Marvel.

The Great Gatsby (Warners Bros./Village Roadshow Pictures)

Budget/marketing: $280 million
Projected global gross: $345 million

Revenue analysis: Thanks to generous Australian tax incentives, the budget for Baz Luhrmann's 3D epic was a modest $105 million. With a surprisingly decent domestic haul ($129 million to date) and predictably good global business, Gatsby should result in profits in the $25 million range.

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Star Trek Into Darkness (Paramount/Skydance Productions)

Budget/marketing: $365 million
Projected global gross: $490 million

Revenue analysis: J.J. Abrams' sequel is on track to exceed the $385.7 million earned by his 2009 Star Trek. Fueled by a better showing internationally (Paramount expects overseas box office to hit $260 million), it won't earn as much domestically as that film, but profits should reach $75 million.  

Fast & Furious 6 (Universal)

Budget/marketing: $335 million
Projected global gross: $730 million

Revenue analysis: The sixth installment is a blockbuster domestically and abroad. It should turn in a franchise-best performance (Fast Five did $626.1 million in 2011) and reap profits of $200 million or more for Universal and Elliott Management after gross players Vin Diesel and Dwayne Johnson are paid.

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Hangover Part III (Warner Bros./Legendary Pictures)

Budget/marketing: $253 million
Projected global gross: $375 million

Revenue analysis: The final Hangover won't reach the level of the sequel ($586.8 million), but it is performing well overseas and has a lower budget than its May rivals, so it still should generate profits of $25 million or more after director Todd Phillips and other gross participants are paid their fees.

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Foreign Box Office: 'Hangover III' Dominates Weekend With $82.3 Million

A crowded weekend at the international box office saw Warner Bros. and Legendary Pictures' The Hangover Part III claiming the spoils as it made its first major foreign push, grossing $82.3 million from 54 markets for an early foreign total of $110.7 million.

The film's offshore performance is helping to make up for a lackluster showing in North America, where the final installment in Todd Phillips' R-rated franchise took in $15.9 million in its second weekend for a domestic total of $88.1 million, compared to $185.5 million for The Hangover Part II.

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All told, the film has now earned $198.9 million worldwide, fueled by its overseas showing. Highlights include Germany, where the threequel grossed $15 million, the biggest opening of the year and the top opening of all time for an American comedy, pacing 28 percent ahead of Hangover II.

Hangover III took in $9.3 million as it opened in Russia, claiming the No. 1 spot and coming in more than 100 percent ahead of Hangover II. In France, the comedy grossed $6.6 million, 24 percent ahead of the sequel.

In the three holdover markets where it opened last weekend, the threequel saw strong results, including in the U.K., where it grossed $4.5 million to place No. 1.

Warners and Legendary are hopeful that the comedy will match the $332.3 million earned by Hangover II internationally, but the goal remains a question mark.

Universal's Fast & Furious 6 placed No. 2 internationally with $75 million from 63 markets, pushing the pic's international total to a glowing $310.2 million and worldwide haul to $480.6 million. The action film scored a record opening in New Zealand with $1.3 million and in Trinidad with $436,000.

Fast 6 held well against the onslaught of Hangover II, remaining No. 1 in Latin America and Asia. Within a month, it's expected to surpass the $416 million earned by Fast Five at the foreign box office. Remaining major markets where it has yet to open include Australia, Japan and China.

In North America, Fast 6 easily stayed at No. 1 in its second weekend, grossing $34.5 million for a domestic total of $170.2 million. And worldwide, it was No. 1 for the weekend with total grosses of $105.9 million, versus $98.2 million for Hangover III.

Paramount's Star Trek Into Darkness also held in well as it continued to expand overseas, grossing $37.6 million from 44 markets for an international total of $147.4 million, the best showing ever for the sci-fi franchise, which has never been as popular overseas. The film, directed by J.J. Abrams, has earned $328.6 million worldwide and has yet to open in Japan, Brazil, France, Italy and Spain.

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Fox's 3D family animated pic Epic placed No. 4 overseas, grossing a solid $28.5 million from 57 markets for a foreign total of $86.3 million and worldwide cume of $151.6 million.

Epic was followed by Baz Luhrmanns' The Great Gatsby, from Warners and Village Roadshow Pictures. The adaptation of F. Scott Fitzgerald's iconic novel grossed $22.6 million from 56 markets for an international total of $120 million, almost on par with the film's domestic total of $128.3 million.

Weekend highlights included a $6.7 million opening in Australia, Luhrmann's home country, and a $1.9 million opening in Mexico, Lurhmann's highest showing. Gatsby opens in Japan on June 14.

Box office observers believe that Gatsby will ultimately match the $195 million grossed internationally by Sex and the City 2.

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