Starz Distribution Narrows Q4 Operating Loss21 Feb, 2014 By: Erik Gruenwedel
Dearth of new releases undermine unit, which includes Anchor Bay Home Entertainment
Starz Distribution reported a fourth-quarter (ended Dec. 31, 2013) pre-tax operating loss of $500,000, which was a significant improvement compared with a pre-tax operating loss of $19.8 million during the previous-year period.
Starz Distribution, which is an operating unit of Starz LLC and includes Anchor Bay Home Entertainment, generated revenue of $83.8 million, which was down almost 14% from revenue of $97 million a year ago.
Principle Starz distribution assets include movie discs from The Weinstein Co., and Starz Originals programming.
Starz attributed the decline to fewer high-performing new releases in the quarter, specifically compared with last year’s releases of the Weinstein film Lawless and Season one of Starz original series "Magic City."
The 98% decline in pre-tax loss was primarily due to lower production and acquisition costs resulting from a decrease in impairments of investment in films and television programs as compared with the prior period.
For 2013, home video net sales improved 40% to $296.4 million, from $211.6 million the previous year. Overall, Starz Distribution revenue increased 40% to $449.5 million, primarily as a result of a greater number of higher-performing titles from The Weinstein Co., including Django Unchained and Silver Linings Playbook, various Starz original series titles such"The White Queen," "Spartacus" and "Da Vinci's Demons," and AMC Networks’ "The Walking Dead."