Lionsgate, facing an ongoing takeover threat from corporate raider Carl Icahn, has reported a $163m loss for the year to March 31 despite seeing rises across its theatrical, home entertainment, TV and library divisions.
The loss is attributed to box office flops The Spirit and Punisher: War Zone as well as the disappointing North American performance of Transporter 3. Higher running costs and a $36.1m charge incurred by returned DVDs under the company’s deal to distribute Hit Entertainment’s family entertainment titles also impacted performance.
Fiscal year revenues amounted to $1.46bn, up roughly 8% on $1.36bn from the previous year, while the loss, which Lionsgate forecast last February would be in the region of $135m, was more than double the $74m of 12 months ago. International revenue fell 10% to $142.3m.
However studio top brass said they expected a return to profitability in 2010 predicated on strong core business and reduced marketing costs in the months ahead.
And there was brighter news when Lionsgate, announcing its results after the markets closed last night [June 1], revealed its second highest ever fourth quarter result of $463.2m.
The company did not break out the quarter, although the commercial success of Tyler Perry’s Madea Goes to Jail and horror titles My Bloody Valentine 3-D and The Haunting In Connecticut will have played a part.