Lionsgate Q3 Profit Tumbles11 Feb, 2008 By: Erik Gruenwedel
Despite strong theatrical revenue from Saw IV and Tyler Perry's Why Did I Get Married?, Lionsgate posted a 90% drop in third quarter (which ended Dec. 31) net income to $1.95 million, compared to $20.4 million during the same period last year.
The Santa Monica, Calif.-based mini-major posted its top third quarter revenue to nearly $291 million, compared to $254.5 million last year.
DVD sales fell 7.5%, to $105.1 million, from $113.6 million last year. Top selling titles included Bratz: The Movie, Skinwalkers, Captivity, Delta Farce, Saw III and The Condemned.
Company executives didn't appear concerned about home entertainment, citing Lionsgate's best-ever DVD sales in January following standard DVD and Blu-ray Disc releases of 3:10 to Yuma, Good Luck, Chuck and Saw IV.
“Our theatrical, television, home entertainment, library, international and digital businesses all achieved continued solid performance in the quarter,” said Jon Feltheimer, Lionsgate co-chairman and CEO, in a statement.
The studio recorded its strongest international revenue to date ($53.8 million), including $22.4 million from its U.K. operations.
Lionsgate's filmed entertainment backlog, which includes future revenue not yet recorded from licensing of films and television product for foreign and domestic markets, grew to a record $416.6 million.
Feltheimer said the studio was set to achieve record-breaking fourth quarter (ending March 31) revenue, free cash flow and on track to meet its full-year fiscal guidance.
Lionsgate will hold a financial call with analysts Feb. 12 to discuss the quarter's results.