Theatrical Marketing Costs Sink Lionsgate Q19 Aug, 2007 By: Erik Gruenwedel
Increased marketing costs associated with Lionsgate's expanded theatrical release slate resulted in the mini-major posting a first-quarter (ended June 30) loss of $53.1 million, compared to a loss of $3.6 million during the same period last year.
Without the $47 million increased marketing cost, the net loss would have been $6.1 million.
Home video revenue dipped 10% to $103.8 million, compared to $114.8 million last year. Primary DVD drivers in the quarter included Pride, Daddy's Little Girls, Happily N'Ever After and ongoing sales of Saw 3 and Employee of the Month.
Overall revenue increased 15% to $198.7 million, compared to $172.4 million last year.