Boutique film and TV studio Lions Gate Entertainment Corp. moved from a profit to a loss in its fiscal first-quarter.
After the markets closed on Monday, the Santa Monica studio with corporate headquarters are in Vancouver, British Columbia, reported a net loss of $64.1 million (-54 cents per share) in the quarter ended June 30, compared with net income of $36.3 million (30 cents) a year earlier.
Revenue fell 14 percent to less than $327 million.
Analysts surveyed by Thomson Reuters on average had expected earnings of 4 cents per share on revenue of $401 million.
The company reported lower revenue at its home entertainment and Mandate Pictures units. Also, the numbers were down because the company had sold off part of its TV Guide Network channel earlier this year and stopped including its sales in its earnings. Theatrical marketing costs hit $71.2 million as the company launched three movies in wide release during the quarter compared with one in the same period a year ago.
"Our first quarter was affected by marketing costs … timing of television deliveries and the underperformance of our theatrical release ‘Killers’ " Chief Executive Officer Jon Feltheimer said in a statement. "With our upcoming theatrical slate, beginning with this Friday's opening of ‘The Expendables,’ and the continued strength of our television, library and channel businesses, we remain poised to achieve our full year financial targets."
Lions Gate’s board earlier this month unanimously turned down the latest hostile takeover offer by Carl Icahn.
Before the earnings was released, shares had closed down 10 cents, or 1.5 percent, to $6.58 on the New York Stock Exchange.
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