Lionsgate Q2 Home Entertainment Revenue Dips10 Nov, 2010 By: Erik Gruenwedel
A dearth of TV DVD and direct-to-video releases contributed to Lionsgate posting a 5% second quarter (ended Sept. 30) revenue decline in home entertainment.
The Santa Monica, Calif.-based mini-major said disc and digital revenue from Killers, Kick Ass, Why Did I Get Married Too? and From Paris With Love, among other titles, was $132.1 million, compared with $139 million during the previous-year period. Lionsgate said its $150 million distribution agreement with Redbox helped it maintain a strong DVD-to-box office conversion rate.
Lionsgate co-COO Steve Beeks, in a call with analysts, said the downturn in TV DVD releases reflected timing of the series' releases, rather than market changes.
"'Mad Men', 'Weeds' and 'Blue Mountain State' are all still doing pretty well in packaged media, and we look forward to [the fourth quarter] when we will be releasing our series again," Beeks said.
Overall, the studio reported a net loss of $29.6 million, compared with income of $31.7 million last year, due in part to nearly $60 million in marketing cost associated with theatrical releases The Expendables, The Last Exorcism and Alpha & Omega, among others. Revenue increased 25% to $456.3 million from $366 million last year.
CEO Jon Feltheimer said Expendables is projected to be one of the studio's most profitable movies ever, with a sequel already greenlighted.