Genius posts Q3 loss but sees better fourth
By Susanne Ault -- Video Business, 11/14/2007
NOV. 14 | Genius Products LLC posted losses for its third quarter, but majority owner The Weinstein Co. is upbeat about GP LLC's performance through the year.
TWC disc distributor GP LLC recorded a net loss of $5.2 million for the three months ended Sept. 30, according to Genius Products Inc., which owns a 30% stake in the company. Year-to-year comparisons aren't available, given the timing of GP LLC’s completed formation between GP Inc. and TWC last year.
But GP LLC's third-quarter red ink represents a slide from the second quarter, when the company turned in its first profitable three-month period since launch.
Revenue for the joint GP Inc. and TWC distribution venture totaled $93.4 million.
“With eight TWC theatrical releases expected in the fourth quarter, including The Mist and The Great Debaters, our partners at Genius Products move into 2008 with tremendous momentum,” TWC co-chairs Bob Weinstein and Harvey Weinstein said in a statement. “We continue to be impressed by how rapidly Genius has built a company capably of delivering over $1 billion [in annual] revenue and continue to be very excited about their long-term prospects.”
GP LLC CEO Trevor Drinkwater believes the company's third quarter was negatively impacted by early spending on titles being released in the fourth quarter. Additionally, third-quarter DVD releases were tagged to lower box-office grosses than comparable releases last year.
“The corresponding domestic box office associated with the third quarter TWC 2007 video releases was $25.4 million compared to the same quarter the prior year of $108.5 million,” said Drinkwater. “2006 releases included Lucky Number Slevin, Scary Movie 4, The Matador and Libertine. 2007 releases included Death Proof, Factory Girl, The Ex and DOA.
Like the Weinsteins, Drinkwater is optimistic about the remainder of GP’s year, as fourth-quarter DVD releases are tied to an improved $172.2 million in box office. Those titles include 1408, Sicko, Halloween and The Nanny Diaries.
GP LLC also distributes several non-TWC brands, many of which will be promoted around the holidays.
“We also will have a full season of the well-established Classic Media holiday titles including Rudolph, the Red-Nosed Reindeer; Santa Claus is Coming to Town; and Frosty, the Snowman,” said Drinkwater. Also, there is "revenue from new content partners such as RHI, Sesame Street and the Discovery Channel and revenue from newly launched titles under our Animal Planet and TLC brands."
For the full 2007, GP LLC income should total $15 million, according to company executives. Revenue should range between $750 million and $800 million.
