MGM today (Apr 24) announcedreduced losses for the first quarter of 2003, driven chiefly by the successfultheatrical release of Agent Cody Banks, improved performance in the home entertainment division and the launchof MGM-branded channels in Europe.

First quarter 2003 losseswere $55.8m or 22 cents per share compared to a net loss of $90.8m or 37 centsper share for the same period last year.

Revenues rose by 25% in thefirst quarter to $395.2m, compared to $315.1m for the same period in 2002.

Highlights for the firstquarter included: strong theatrical performances from the teen comedy AgentCody Banks, which grossed $45m; theOscar winning documentary Bowling For Columbine, which has taken $20.9m to date; and the continuedsuccess of the latest James Bond film, Die Another Day, which has grossed almost $430m worldwide.

Other drivers were: anincrease in MGM Home Entertainment Group's library market share in the US to18% (double what it was in 2000); a 16% increase in worldwide homeentertainment revenues and a 25% growth in worldwide DVD shipments.

Successful launches ofMGM-branded channels in Germany, Austria and The Netherlands were alsohighlighted as key drivers.

In a statement tostockholders, Alex Yemenidjian, chairman and chief executive officer, and ChrisMcGurk, vice chairman and chief operating officer, stressed the importance ofcontinuing to develop a broader revenue base at the company.

Whereas MGM famously builtits reputation as a film studio, the executives pointed to increased televisionproduction, new MGM-branded channels and greater cash flow from its library ofmore than 4,000 titles - the largest in the world - as important growth areasof the future.

A revised film productionmodel will see greater emphasis on selling foreign rights and alternativefinancing routes for non-sequel productions, allowing the company to limit itsinvestment to less than $25m on non-sequel films.

Tentpole films with majortalent, such as Reese Witherspoon in Legally Blonde and Ice Cube in Barbershop - both nascent franchises - will still receivegreater investment.

This year's film slateincludes the aforementioned comedies Legally Blonde 2: Red White And Blonde, Barbershop 2, the Denzel Washington thriller Out Of Time and the horror sequel Jeepers Creepers 2.