'Vig,' 'High Life' delays set co. back for qtr.
MONTREAL — The rapidly changing Lions Gate Entertainment Corp., which has only had five quarters of results since its founding, reported improved results Monday from a year ago.
Its revenues were up significantly, and it reduced its net loss for the quarter from the previous year.
The Vancouver-based company posting a net loss of C$25,000 ($16,000), compared with a net loss of $80,000 a year earlier.
Executives at the Canadian company blamed the loss on lower-than-expected production revenues in the quarter from Lions Gate Films, which had to delay the delivery of two of its pics, “Vig” and “High Life.”
The films will be delivered in the second quarter and will generate an estimated $5 million for Lions Gate.
Lions Gate Films is on track to meet revenue expectations for the full fiscal year, according to VP investor relations Peter Waal.
Revenues for the three months ended June 30 were $12 million, up from $1.5 million the previous year.
“We’re mildly disappointed,” Waal said. “This is not the end of the world. We had a hangover from two films that couldn’t be released. It’s just the nature of the film business. The train is still on track.”
Also, the company has been expanding rapidly, so it’s difficult to compare the first quarter a year ago with this most recent quarter.
In the quarter, Lions Gate recorded a one-time gain of $550,000 from the sale of part of its stake in Montreal-based animation producer Cine-Groupe. Fox Family Worldwide acquired a 20 percent interest in Cine-Groupe, which is now 56.2% controlled by Lions Gate. Cine-Groupe is expected to deliver 88 half-hour episodes this year.