Lionsgate Narrows Net Loss

SANTA MONICA: Lionsgate’s third-quarter revenues rose 24 percent to $422.9 million, with a net loss of $6 million, as compared with a year-ago loss of $65.3 million.

The company noted gains in its home-entertainment operations—led by the DVD and digital performance of The Expendables—as well as strong international revenues, increased television production and syndication revenues and lower theatrical marketing costs. The $6 million loss included non-cash equity interest losses of $13.1 million ($11.1 million attributable to Lionsgate’s interest in Epix) and $7.9 million in corporate defense and associated costs related to shareholder activist activities.

"We had a strong revenue and EBITDA performance in the quarter driven by contributions from our home entertainment, television and international film and TV businesses as well as our filmed entertainment library, despite a challenging environment for packaged media conversion," said Jon Feltheimer, co-chairman and CEO. "We continue to execute a long-term business plan designed to balance our key priorities—strengthening our balance sheet, maximizing EBITDA and free cash flow and creating long-term value."

In the period, motion picture revenues gained 30 percent to $326.7 million. Home entertainment revenue from both motion pictures and television was $174.4 million in the third quarter, a 63-percent increase. Television revenue included in motion-picture revenue was $49.7 million, a decrease of 9 percent. International motion picture revenue of $21.4 million was up 31 percent.

Television production revenue was up 5 percent to $96.2 million, including a 52-percent hike in U.S. series licensing from Debmar-Mercury.