Loss Narrows at Lionsgate

SANTA MONICA: Independent studio Lionsgate increased its third-quarter revenues by 15 percent to $371.8 million, narrowing its loss in the period from last year’s $97.8 million to $65.3 million.

The revenue increase was primarily attributed to improved TV production revenues as well as the $29.3 million contribution from TV Guide Network and TVGuide.com, acquired last year.

"We had a solid quarter of revenue growth and strong free cash flow, and we remain on track to achieve our full year financial targets," said Jon Feltheimer, co-chairman and CEO. "We were particularly pleased to achieve record library revenues in a challenging home entertainment environment, a continuation of strong growth in all areas of our television business and significant progress in our channel investments. Coupled with a film slate that we plan to expand and diversify next year, we believe that our core and newer businesses combine to give us excellent momentum."

Motion picture revenues slipped 2 percent to $251 million, with theatrical revenues down 29 percent to $49.4 million. Home entertainment revenues, however, were relatively flat at $95 million and television revenues in this segment gained 40 percent to $54.7 million. International revenues, meanwhile, fell 9 percent to $37.5 million.

Television production revenue increased to $91.5 million, a gain of 32 percent, with a 23-percent increase in domestic series licensing and a 108-percent increase in revenues from Debmar-Mercury. In addition, there was a 76-percent increase in international television sales and a 75-percent increase in revenue from home entertainment releases of television productions.