Lionsgate DVD revenue falls 7.5%

Studio reports overall 90% drop in fiscal Q3 profit

By Danny King -- Video Business, 2/11/2008

FEB. 11 | Lionsgate Entertainment’s fiscal third-quarter home entertainment revenue fell 7.5% as current DVD releases failed to keep pace with year-earlier titles, the indie studio said today.

The unit’s revenue for the quarter ended Dec. 31 was $105.1 million, down from $113.6 million a year earlier. Bratz and Skinwalkers, which led disc sales for the quarter ended Dec. 31, failed to match revenue from late 2006 releases Akeelah and the Bee and An American Haunting, the company said.

Overall, earnings for the quarter dropped 90% to $2 million, or 2¢ a share, from $20.5 million as expenses jumped. Operating, distribution and marketing expenses were 89% of revenue, up from 81% a year earlier, the company said today.

Revenue increased 14% to $290.9 million.

Motion picture revenue rose 15% on major theatrical releases such as Saw IV and the Tyler Perry film Why Did I Get Married?. International sales doubled to $53.8 million on overseas releases of Saw IV, Saw III and Good Luck Chuck.

The company was expected to earn 7¢ on $289.4 million in revenue, the average estimates in a Thomson Financial survey. DVD sales could rise for the fiscal fourth quarter, which includes a record month in January from standard-def and Blu-ray releases of War and 3:10 to Yuma, Lionsgate said.

The company will hold a conference call tomorrow morning to discuss results.