Starz Distribution Posts Q2 Loss28 Jul, 2016 By: Erik Gruenwedel
A dearth of new releases from The Weinstein Co. contributed to Starz Distribution posting a second-quarter (ended June 30) $5.4 million operating loss, compared with operating income of $1.1 million during the previous-year period.
Starz Distribution, which includes Anchor Bay Home Entertainment, reported revenue of $60 million, down from $78.4 million.
Home video revenue topped $16 million, down 58% from $37.4 million a year ago. Through the first six months of the year, home video revenue is down about 30% at $50.5 million, from $72.3 million.
In Q2, Starz released Jane Got a Gun, Regression and War & Peace, compared with Paddington, Big Eyes and Immigrant in the previous-year period.
Paddington generated $20.8 million on sales of more than 1.3 million combined DVD/Blu-ray Discs.
Also contributing to the decrease in operating income was an increase in bad debt from the Super Channel bankruptcy in Canada. Cash paid for investment in films and television programs decreased $50.9 million to $2.8 million, due to timing of payments under the Weinstein distribution agreement.