Lionsgate Posts $29 Million Q4 Loss1 Jun, 2009 By: Erik Gruenwedel
Lionsgate said it expects a 10% to 12% decline in DVD sales in the current fiscal year despite posting a 5% increase in home entertainment revenue in fiscal year 2009 (ended March 31).
The Santa Monica, Calif.-based mini-major said home entertainment revenue tallied a record $675.6 million in the fiscal year, up from $645.1 million during the previous year’s same period.
Principle drivers included DVD and Blu-ray sales of Saw V, Tyler Perry's The Family That Preys, The Forbidden Kingdom, The Bank Job, The Eye, Rambo, Tyler Perry's Meet The Browns, Punisher: War Zone, Transporter 3, Bangkok Dangerous and My Best Friend's Girl, among others.
The studio said the “Saw” franchise remains the No. 1 selling horror DVD series, with the sixth installment slated for theatrical release in October.
Lionsgate generated $34.9 million from TV DVD, including the third season of “Weeds” and the first season of “Mad Men,” which amounted to a 62% increase from $21.6 million in the prior year.
The studio also tallied a record $279 million in catalog revenue in the fiscal year, which is expected to generate $80 million to $100 million in annual free cash.
Lionsgate ended the fiscal year with a 6% Blu-ray disc market share. The high-definition format represents 15% of the mini-major’s revenue from new theatrical releases.
“About 30% of Blu-ray revenue came from library titles, an important sign that Blu-ray is now a medium for catalog product as well as new releases,” Steve Beeks, president and co-COO, said in a call with investors.
The studio’s DVD market share grew to a high of 8.2% in the quarter. Children’s non-theatrical DVD market share increased to 13% from 8% last year.
Lionsgate reported a fourth-quarter net loss of $28.6 million, compared to net income of $29.8 million during the previous-year period. Revenue dropped 9% to $463.2 million, compared to $511.5 million last year. Overall revenue for the year increased 8% to $1.47 billion.