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MGM's Three No. 1 Film Debuts, DVD Sales Spike Can't Rescue Q2 Results

27 Jul, 2001 By: Hive News

Metro-Goldwyn-Mayer Inc. today reported revenues of $274.9 million and an EBITDA loss of $35.9 million for the quarter ended June 30, 2001. These results were in line with the preliminary guidance for the quarter that the company provided on June 21, 2001.

Second-quarter revenues were $274.9 million compared to$294.5 million in the prior year period. Revenues in thesecond quarter of 2000 included over $67 million from the home video release of The World is Not Enough.

Earnings before interest, taxes, depreciation andamortization (EBITDA)was a loss of $35.9 million compared to positive EBITDA of $24.1 million last year. The EBITDA decline was principally due to two disappointing films in thequarter. The change to new industry-wide accounting standards also reduced EBITDA by $6.3 million in the quarter.

Net income was a loss of $61.3 million compared to positive net income of $6.3 million in last year's second quarter.

Earnings per share were a loss of $0.26 compared to a positive $0.03 in the second quarter of 2000.

Among the operating highlights, according to a company press release:

-- Library revenues grew 30% in the quarter.

-- DVD sales have increased 33% in the first half of 2001, even with the release of The World Is Not Enough in the second quarter of 2000.

Commented Alex Yemenidjian, MGM chairman and c.e.o.: "MGM's near-term outlook is very bright. Our home video and television distribution operations, which provide MGM with predictable and growing cash flow, had an excellent secondquarter. And our international channels, a key component of our long-term growth, made meaningful progress during the quarter."

Vice chairman and c.o.o. Chris McGurk added, "In 2001,MGM has had three films open at number one at the box office, including Legally Blonde, which was MGM's biggest comedy debut ever. It has now generated over $50 million at the box office and will be extremely profitable. We believe that our balanced portfolio of films for the remainder of 2001 and for 2002will deliver strong performance."

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