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Loss hits Lions Gate

Marketing costs drive $12 mil dip in Q1

Shares in Lions Gate Entertainment dropped 6% on Thursday after the film and TV company posted a $12.6 million loss for its fiscal first quarter and said film marketing costs had outpaced theatrical income in the period.

The red ink compared with a $2.7 million profit in the same period a year earlier.

Revenue slid 42% in the three-month period ended June 30, to $54.9 million.

“As expected, our $20 million marketing spend on ‘Confidence’ and ‘House of 1,000 Corpses’ without a commensurate theatrically generated title created a soft quarter in comparison with the prior year’s results,” CEO Jon Feltheimer said. “Our financial results were also affected by product timing in our animation business, with no deliveries during the quarter.”

Feltheimer added that the company expects a “significant rebound” in the current quarter with the homevid releases of “Confidence” and “House.” Both pics bowed theatrically in April and produced just over $12 million apiece domestically.

Lions Gate, which will showcase eight films at the Toronto Intl. Film Festival next month, also expects steady improvement in film and TV operations through the balance of its current fiscal year. Headquartered in Vancouver and Marina del Rey, Lions Gate has set fall movie releases including the Stephen Glass biopic “Shattered Glass.”

Lions Gate shares fell 20¢ to close at $3.20 on Thursday.