Lionsgate Reports Flat Q2

SANTA MONICA, November 10: Lionsgate’s second-quarter
revenues were up just 3 percent to $218.2 million, while its net loss rose
slightly to $14.3 million.

"Our core businesses continue to perform strongly and
we remain well positioned for a very successful fiscal 2007 in line with our
expectations," said Lionsgate CEO Jon Feltheimer. "Our recent
acquisition of the television syndication company Debmar-Mercury, the launch of
our FEARNet branded horror channel, our addition of important new family
entertainment franchises, strong international results and the consistent
performance of our theatrical box office franchises all underscore our
continued steady growth."

Theatrical revenue of $20.5 million during the second
quarter increased 9 percent, driven by The Descent and Crank.
Home video revenues fell 4 percent to $115.1 million. International revenues
were up 73 percent to $17.1 million, including a $6.1 million contribution from
Lionsgate U.K., which released The Wicker Man and Right At Your Door theatrically and An American Haunting and A Cock and Bull Story on DVD. Television revenue included in the motion
picture segment was $33.4 million in the second quarter, an 82 percent
increase. The gain was attributable to several theatrical titles with
television windows opening in the second quarter, including Saw II and Lord of War. Television production revenue of $31.6 million in the quarter
decreased 26 percent due primarily to lower international television revenue
and lower domestic licensing revenue.