Cinedigm Eyes Winter 'Home Entertainment' Holiday13 Nov, 2012 By: Erik Gruenwedel
Cinedigm Entertainment Group Nov. 13 said it is expecting strong sellthrough of retail releases from the recent New Video acquisition during the winter holidays to upgrade third-quarter revenue.
CEG is a unit of Cinedigm Digital Cinema Corp, which distributes content via installed digital theatrical screens, video-on-demand platforms and packaged media. It reported a second-quarter (ended Sept. 30) loss of $2.6 million on revenue of $22.6 million. The Los Angeles-based digital distributor generated a loss of $230,000 on revenue of $21 million during the previous-year period.
The company said the loss was due to the impact of virtual print fees of unexpected shifts in the breadth and timing of various major studio movie releases in July and August. In addition, Cinedigm installed 875 digital screens in the second quarter — the second-largest installation period in its history.
CEG has also acquired 10 movies year-to-date at select film festivals, including recently announced Arthur Newman, starring Academy Award winner Colin Firth and Academy Award Nominee Emily Blunt; and Violet and Daisy, written and directed by Academy Award winner Geoffrey Fletcher and starring James Gandolfini, among others.
“We expect Q3 and Q4 to be our strongest financial quarters of the year given the impact of the holiday on our home entertainment content sales, a number of recent content and digital aggregation acquisitions, and our strong software pipeline,” said COO/CFO Adam Mizel in a statement. “We remain extremely focused on profitably growing all our core businesses and making additional strategic investments to drive shareholder returns in fiscal year 2014 and beyond.”