Lionsgate Reports Q1 Loss

SANTA MONICA/VANCOUVER: Revenues at Lionsgate fell 14 percent to $326.6 million in the first quarter, with the studio posting a net loss for the period of $64.1 million, as compared with the year-ago profit of $36.3 million.

The loss was attributable primarily to an increase of $71.2 million in theatrical marketing costs. In addition, stock-based compensation increased $23.3 million, and $7.3 million was spent in corporate defense costs vending off Carl Icahn’s hostile takeover attempts. "Our first quarter was affected by marketing costs for our three wide releases, timing of television deliveries and the underperformance of our theatrical release Killers," said Jon Feltheimer, co-chairman and CEO. "With our upcoming theatrical slate, beginning with this Friday’s opening of The Expendables, and the continued strength of our television, library and channel businesses, we remain poised to achieve our full year financial targets."

Overall motion picture revenue remained flat at $272.7 million. This includes theatrical revenues of $71.3 million, home entertainment revenues of $117.1 million, television revenues (primarily pay-TV licensing fees) of $30 million and international motion picture revenue of $29.1 million. In the TV production segment, revenues fell by 38 percent to $53.9 million.