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MGM's Record Fiscal Year Spurred by Home Video

18 Feb, 2004 By: Erik Gruenwedel

Buoyed by a 21 percent increase in home entertainment revenue, including a 41 percent increase in worldwide DVD shipments, MGM today announced a record net income of $60.3 million, or 25 cents per share, for the fourth quarter ended Dec. 31, 2003.

During the same period last year, MGM posted net income of $58.6 million, or 24 cents per share.

Fueled in part by its best-selling new home video release Legally Blonde 2: Red, White and Blonde as well as archived releases of Legally Blonde, Chitty Chitty Bang Bang, The Terminator and The Princess Bride,” MGM had quarterly revenue of $543 million, compared with $621 million during the same period last year.

For fiscal year 2003, MGM posted revenue of $1.8 billion, up about 12.5 percent from $1.6 billion last year.

In a related matter, MGM COO Chris McGurk reiterated in a conference call with investors that the company is actively pursuing a distribution deal with Pixar Animation Studios for the latter's product.

“We would love to be in business with them,” McGurk said.

Last month, Pixar broke off renegotiations with The Walt Disney Co. regarding a co-production and distribution agreement that ends in 2005.

A Pixar spokesperson declined comment.

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