Q3 Loss for CKx

NEW YORK: Reduced revenues from So You Think You Can Dance and American Idol, and restructuring charges at 19 Entertainment, resulted in CKx, Inc. posting a third-quarter loss of $2.4 million, as compared with the year-ago profit of $11.2 million.

Total revenues at the company fell 8.3 percent to $80.1 million. This included a $6.9 million fall from So You Think You Can Dance, which had two seasons in the comparable period in 2009; and a $1.1 million decrease in American Idol revenues, primarily due to decreased revenue from sponsorship deals, offset by higher touring revenue. The period also included severance and restructuring costs of $8.3 million at 19 Entertainment, and merger-related costs of $0.7 million.

Commenting on the results, CEO Michael G. Ferrel said, "We are encouraged by our third quarter results across the company. The announced changes being implemented for the 2011 season of American Idol have been well received. So You Think You Can Dance completed its seventh season in August and has been picked up for another season in 2011. We have also made major progress with our restructuring of 19 Entertainment, which is increasing our focus on our hit properties while significantly reducing spending on unproductive development projects and general overhead. Although our three-month and nine-month results were negatively impacted by restructuring costs, the benefit of $20 million in annual cost savings that we have implemented has already begun to positively impact our operating results in the third quarter of 2010."