Metro-Goldwyn-Mayer Inc. Monday reported a net loss of $ 46.7 million for the second quarter ended June 30, trimming 20% from its loss in the same quarter a year earlier.
Operating losses also declined by 39% to $ 23 million.
Revenues, however, likewise tumbled by 32% to $ 133.3 million.
Expenses in line with revs
Overall, the quarterly report beamed several positive signs for the company. Total expenses, for example, stayed roughly in line with revenue, falling by one-third. Expenses for feature films and TV programming skidded a hefty 41% to $ 101.8 million. And costs for theater operations fell 18%.
Sales lacked luster
The sales picture was lackluster, with just one network TV show airing, “In the Heat of the Night” on CBS, compared with three in the 1992 quarter, and weaker motion picture B.O. compared with such 1992 hits as “Thelma & Louise.” The most prominent second-quarter film release this year was “Benny & Joon.”
Company officials declined comment on the financial results. In a brief written statement, recently appointed chairman and CEO Frank G. Mancuso did not remark on the successful trimming of losses or expenditures.
He did, however, predict a resurrection of the company under a new corporate financial restructuring announced in late July and approved in principle with MGM’s owner-bank Credit Lyonnais. It would nearly double MGM’s credit line to $ 400 million and remove $ 800 million of bank debt from its balance sheet.
“We have begun the rebuilding of Metro-Goldwyn-Mayer,” Mancuso said. “We look forward to an aggressive revitalization in all of our businesses.
A company spokesman primarily credited lowered interest expenses for the improved bottom line. For the six months, net losses and revenues both declined by a third to $ 97.9 million and $ 329.3 million, respectively, compared with the six-month period in 1992. Operating losses fell 23% to $ 41.5 million.