But studio swings to fiscal Q1 loss on higher marketing costs
“The Hunger Games” flooded Lionsgate’s coffers as motion picture revenue more than doubled last quarter to $406 million.“Cabin in the Woods,” “What to Expect When You’re Expecting” and buoyant home entertainment business also boosted sales. Total revenue jumped 81% to $481 million. But the studio swung to a loss of $44 million from a $10.3 million profit as theatrical marketing costs increased by $90 million thanks to five releases in the quarter vs. only one the year before. All five are expected to be profitable, Lionsgate said. Earnings were also squeezed by higher stock-based compensation from a boost in the share price, costs from integrating Summit Entertainment and a non-cash charge for early retirement of a significant portion of Summit’s term loan debt. Theatrical revenue of $138 million was five times the year-earlier number on “Hunger Games,” the 12th highest-grossing domestic release of all time. Home entertainment revenue from pictures and TV rose to $145 million from $93 million driven by five major DVD and digital releases. Television revenue, included in motion pictures, was $37 million, down 14%. TV production revenue dipped 5% to $65 million on fewer contributions from the company’s Debmar-Mercury syndication arm, offset in part by increased digital media revenue from “Weeds” and “Mad Men” in their home entertainment windows. U.K. revenue nearly tripled to $33 million on “The Hunger Games” and “Salmon Fishing in the Yemen.” International motion picture revenue outside the U.K. quadrupled to $49 million, fueled by “The Hunger Games” the “Twilight” films, “Cabin in the Woods,” “What to Expect” and “Man on a Ledge.”
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