Lionsgate's Big Revenue Results In Big Loss
In what is likely to serve as further ammunition for corporate raider Carl Icahn should he proceed with his effort to gain control of Lions Gate, the company on Monday reported its second-highest quarterly revenue in its history but nevertheless a significant net loss for the year. In an SEC filing, the studio said that its fourth quarter revenue came to $463.2 million, while revenue for the year came to $1.47 billion. However, although its revenue was up 8 percent for the year, it wound up with a net loss of $163.2 million, more than double its $74-million loss a year earlier. Lions Gate attributed the loss to the poor performance of its movie releases in the second and third quarters, although fourth-quarter film revenue was strong, thanks to such hits as Tyler Perry's Madea Goes to Jail, My Bloody Valentine 3D and The Haunting in Connecticut . In a statement, Lions Gate chief Jon Feltheimer said, "We ended our fiscal year on a strong note, with record box office in the first calendar quarter." He said he expected "strong positive metrics" in its new fiscal year. Just last week, it sold 49 percent of its TV Guide cable channel and TVGuide.com for $123 million.