Lionsgate Posts Impressive Fiscal Rebound

10 Aug, 2009 By: Erik Gruenwedel

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Strong revenues across its diversified portfolio, including home entertainment, contributed to Lionsgate reporting a first-quarter (ended June 30) profit of $36.3 million, compared to a profit of $3.5 million during the same period a year ago.

The quarterly net income was the first in some time for the Santa Monica, Calif.-based mini-major following successive quarterly losses of $48.2 million, $93.4 million and $28.6 million, respectively.

Home entertainment revenue, which includes electronic distribution, totaled $151 million, down 6% from the prior year's quarter. Top DVD/Blu-ray sellers included Tyler Perry’s Madea Goes to Jail, My Bloody Valentine 3-D, New in Town, The Spirit and Transporter 3, which compared unfavorably with last year’s first quarter slate that included Rambo, 3:10 To Yuma, The Eye and Witless Protection.

DVD sales of The Spirit and New in Town surpassed their theatrical box office performance in the quarter, giving Lionsgate five of the industry’s top six over-converting DVD titles in the first six months of calendar 2009, according to the studio.

Overall first-quarter revenue increased 30% to $388 million from $298.5 million last year, reflecting strong growth in television production; overall motion picture group revenues, highlighted by a strong performance from Mandate Pictures; and new revenue of $27.8 million from TV Guide Network and TV Guide.com.

“We saw significant positive developments across nearly all of our businesses, including new distribution and syndication orders, new television series entering the production pipeline, important programming acquisitions for TV Guide Network, the first in a series of anticipated carriage deals for Epix and new branded channel launches in Asia,” said Lionsgate co-chairman and CEO Jon Feltheimer, in a statement. “The real story this quarter was the continued strong growth of our diversified asset base."

Lionsgate executives will discuss the results in an analyst call Aug. 11.
 

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