Image Grows Revenue, Widens Loss14 Nov, 2011 By: Erik Gruenwedel
Disc sales increase nearly 9% to $17 million
Image Entertainment Nov. 14 reported a second-quarter (ended Sept. 30) loss of $2.6 million, up 18% from a loss of $2.2 million during the previous-year period.
The Chatsworth, Calif.-based distributor saw revenue increase nearly 13% to $20 million from $18 million last year due to increases in packaged media, digital and broadcast revenues.
Specifically, sales of DVD and Blu-ray titles increased nearly 9% to $17 million from $15.7 million driven in part by titles The Perfect Game, the 2011 NBA Championship, Criterion Collection’s Carlos and Russ Parr’s 35 and Ticking, among others.
Digital revenue, which includes transactional and subscription video-on-demand, increased nearly 18% to $1.1 million from $1 million. Broadcast revenue surged more than 50% to $907,000 from $602,000 last year.
“We saw an increase in revenues from all distribution channels, including physical, digital and broadcast, as well as continued strong sales results in Canada,” COO/CFO John Avagliano said in a statement. “These revenue improvements resulted in a narrower loss from operations in the quarter as compared to the same period last year.”
Image, in its 10Q filing, indicated its capital requirements to acquire content continue to exceed cash generated through day-to-day operations. Indeed, the company reported a working capital deficit of $9 million in the quarter compared to a working capital deficit of $3.4 million last year.
“We may need to raise additional funds to acquire the rights to content we find desirable, particularly with respect to our competition for home entertainment rights to feature films,” Image said in the filing.
Titles acquired and slated for release during the next two quarters include The Double (starring Richard Gere and Topher Grace), What My Husband Doesn’t Know, Alleged (Image’s first faith-based title released through Slingshot Pictures) and Radio Rebel (starring Debby Ryan), among others.
“We’ve been aggressive in the acquisitions area over the past year and this quarter in particular,” CEO Ted Green said in a statement.