Indie studio shares fell 5% Wednesday
Shares in Lionsgate fell 5% in after-hours trading Wednesday as the indie studio saw its loss grow last quarter on weaker performance for its TV and homevideo divisions.Pre-tax loss grew 5% to $15.3 million, while revenue was up 3% from a year ago to $218.2 million. Theatrical revenue was up 9% to $18.8 million on solid perfs for “The Descent” and “Crank.” Division would have done even better, but it had to charge much of the marketing spend for Oct. 6 release “Employee of the Month” in the prior quarter. Homevideo revenue was down 4% at $115.1 million, which the company attributed to a lack of strong new releases. “Akeelah and the Bee” and direct-to-DVD toon “Ultimate Avengers 2” came out in the quarter, but Lionsgate had better results from Tyler Perry’s “Madea’s Family Reunion” (released late in the second quarter) and several library titles from the popular filmmaker. TV production revenue was down a sizable 26% to $31.6 million as licensing revenue fell both at home and abroad. Company noted that it has 12 series that debuted recently or will do so soon. Last year’s acquisition of British distrib Redbus helped the bottom line, as the newly renamed Lionsgate U.K. contributed $6.1 million and made up most of a 73% boost in Lionsgate’s international revenue, which stood at $17.1 million. Before earnings were announced, Lionsgate shares were up slightly at $10.65. For the year, studio’s stock is up a healthy 39%.