Lions Gate Shrinks Loss but Still Disappoints

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Lions Gate Entertainment Corp. said Monday its fiscal second quarter net loss shrank 17 percent as it cut personnel and saw growth in DVD and other home entertainment sales. The results fell short of Wall Street expectations.

The Santa Monica film and TV production studio reported after markets closed a net loss of $48.1 million (-41 cents per share), compared with a net loss of $58 million (-49 cents) a year ago. Revenue grew 8 percent to $381 million, largely driven by a rise in home entertainment revenue that offset a fall in theatrical and television production.

Analysts surveyed by Thomson Reuters on average expected the company would lose 15 cents per share on revenue of $384 million.

The company said it believes it will save another $10 million in overhead annually from cutting 41 positions, including 17 layoffs, since the start of a hiring freeze last summer.

“Given the current environment, we are tasking our senior managers to be even more disciplined in their operations and even more innovative in their thinking.” said Chief Executive Officer Jon Feltheimer in a statement.

Lions Gate shares closed down 4 percent to $6.33 in regular trading, and were down another 4 cents in after-hours trading.

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