RLJ Entertainment Widens Q3 Loss16 Nov, 2015 By: Erik Gruenwedel
RLJ Entertainment Nov. 16 reported a third-quarter (ended Sept. 30) loss of $8.2 million, up 5.1% from a loss of $7.8 million during the previous-year period.
RLJ Entertainment, which includes Acorn Media Group and Image Entertainment, saw revenue decline 12% to $32.5 million, from $37.1 million a year ago, which included revenue from the U.K. broadcast release of the latest season of “Foyle's War.”
Revenue from direct-to-consumer businesses, which include Acorn TV, the Urban Movie Channel (UMC) and e-commerce catalog, increased $2.5 million, or 39%, compared with the third quarter of 2014.
Acorn TV ended the quarter with 180,000 paid subscribers, an increase of more than 60,000 year-over-year.
"We are pleased to see continued growth in Acorn TV and UMC,” CEO Miguel Penella said in a statement.
RLJ ended the quarter with $1.8 million in cash, down 72% from $6.6 million. The company is holding a special shareholder meeting Dec. 4 in an effort to bolster shares ($1.10) through a reverse-stock split, in addition to authorizing an increase in the company’s common stock by 5 million shares.