Poor Theatrical Showing Nearly Doubles Lions Gate Q1 Loss9 Aug, 2005 By: Erik Gruenwedel
Strong DVD sales of Alone in the Dark, Beyond the Sea and Tyler Perry's Diary of a Mad Black Woman and related catalog fare were not enough to offset poor global box office returns as Lions Gate Entertainment posted a first-quarter fiscal 2006 (ended June 30) net loss of $21.8 million, or 21 cents per share.
The loss, on revenue of $194.2 million, nearly doubled the net loss of $11.5 million, or 12 cents per share, on revenue of $188.7 million during the same period last year.
Lions Gate will hold an investor conference call Wednesday morning.
The studio, which posted a 7.6 percent decrease in motion picture revenue to $147 million from $159.1 million last year, reported that theatrical releases of Crash, High Tension, Rize and Hotel Rwanda internationally compared “unfavorably” to box office releases of The Punisher, Godsend, Fahrenheit 9/11 and The Prince and Me internationally during the same period last year.
Television revenue increased 60.5 percent to $45.9 million fueled by five prime time cable and broadcast network shows, including “The Dead Zone,” “Missing,” “Wildfire,” “Weeds” and “The Cut.”
Lions Gate officials expect that a $38.2 million increase in entertainment backlog coupled with the pending release of direct-to-video and family entertainment product would significantly improve EBITDA (earnings before interest, taxes, depreciation and amortization) through the rest of the year.