Lions Gate Entertainment Corp posted a fiscal second quarter loss due to costs related a higher number of new film launches and its legal battle against hostile suitor Carl Icahn.
Late Tuesday, the Santa Monica independent studio and distributor reported a net loss of $29.7 million (-22 cents per share), compared with net income of $31.7 million (27 cents) a year earlier. Revenue rose 25 percent to $456 million, drive by theatrical box office, international and TV production revenue from hit shows such as “Mad Men.”
"We continued to generate strong momentum across our diverse slate of businesses, especially in television and channels, and hit films,” said Chief Executive Officer Jon Feltheimer in a statement.
Analysts surveyed by Thomson Reuters on average expected per-share profit of 11 cents on revenue of less than $419 million.
Lions Gate, which has its corporate headquarters in Vancouver, saw marketing costs increase with four summer releases, including the action movie “The Expendables” and the horror film “The Last Exorcism.” The company also recorded a $14.5 million charge for extinguishing convertible debt in a transaction that diluted Icahn's stake and a $4 million charge for defending against "shareholder activist activities."
Icahn, who owns roughly 30 percent of the company stock, has extended through Friday his offer to buy additional shares for $7.50 apiece.
Shares earlier closed down 6 cents, or less than a percent, to $7.23 on the New York Stock Exchange.
For reprint and licensing requests for this article, CLICK HERE.