Q1 Loss at Lionsgate


SANTA MONICA: Lionsgate Entertainment reported a first-quarter loss of $44.2 million, citing marketing costs for five movie releases.

Revenue increased 81 percent to $471.8 million from the prior-year quarter’s $261.3 million. This performance was driven by the North American theatrical revenue from The Hunger Games as well as the films Cabin in the Woods and What to Expect When You’re Expecting and strong revenue gains at the home-entertainment business.

Home-entertainment revenue from both motion pictures and TV was $145.5 million, driven by five major DVD and digital releases in the quarter. Television revenue included in motion picture revenue was $37.1 million.

Lionsgate U.K. revenue was nearly three times greater than last year’s Q1 at $32.6 million.

Television production revenue was $65.3 million, which is down 5 percent, due primarily to fewer deliveries from the Debmar-Mercury syndication arm offset in part by an increase in digital media revenues from Weeds season six and seven and Mad Men season five.

"We completed our first quarter on target for our fiscal year and our three-year plan," said Jon Feltheimer, Lionsgate’s CEO. "Our financial results in the quarter were affected by marketing costs for a slate of five films, primarily noncash stock-based compensation and a noncash charge for paying down a significant portion of our Summit term loan debt early. However, with two-thirds of the profitability of the first Hunger Games film still ahead, we anticipate that the combined benefits of our Summit acquisition, the strength of our young adult franchises and the continued evolution of our television business will translate into significant and growing contributions for the balance of our three-year plan."