Movies

November 10, 2010

LIONS GATE POSTED 2ND QUARTER LOSS

Niche studio Lions Gate Entertainment Corp., which is in a battle for control of the principal shareholder of the company, Carl Icahn, said Tuesday it recorded a loss in the second quarter, against a profit last year because of cost by releasing two films more than this period.

Net income for the quarter ending Sept. 30 came to $ 29,700,000, or 22 cents per share compared to net income of $ 31.7 million, or 26 cents per share a year earlier. Revenues rose 25 percent to $ 456.3 million to $ 366.1 million.

Analysts polled by Thomson Reuters were expecting a loss of 11 cents per share on $418.9 million in revenue.

Lions Gate, which is based in Vancouver, British Columbia, but run from Santa Monica, Calif., said its costs rose because its distribution and marketing costs rose with the release of four movies in the quarter, up from two a year earlier. The new movies included “The Expendables” and “The Last Exorcism.”

It also said it booked an equity interest loss of $20.7 million, a $14.5 million charge for extinguishing convertible debt in a legally contested transaction that diluted Icahn’s stake, and a $4 million charge for defending against “shareholder activist activities.”

Lions Gate shares rose 2 cents to $7.26 after hours after the results were released. They had closed down 6 cents at $7.23.

Carl Icahn, who owns about 66% of the company, has extended his offer to acquire shares that he doesn’t hold for $7.50 apiece through Nov. 12.

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