MONTREAL -- As predicted by Lions Gate Entertainment Corp. execs earlier this month, the Canadian film and TV company reported a major loss for the past year. But it had some good news in that it posted significant increases in overall revenue and particularly strong rev growth in its film division.

The company reported Thursday that its revenues for the year ended March 31 increased 85% to C$118.3 million ($78.3 million), up from C$64.1 million ($42.2 million) the previous year. The net loss for the year was $9.3 million or 38� a share (based on a weighted average of 24.6 million shares outstanding), compared with a net loss of $397,000 or 1� a share last year.

"Overall, the company made significant initial expenditures in its motion picture and television businesses during the year and anticipates increased revenues and operating leverage to result in fiscal 2000," Lions Gate president Roman Doroniuk said. "We anticipate that the momentum generated during the year in terms of projects under development will translate into deliveries in the current fiscal year."

Video boost

Revenues increased substantially in all businesses over the past year for Lions Gate. In the motion picture division, Lions Gate Films' revenues increased 51% to $50 million, up from $33 million a year earlier. The majority of the revenue growth came from video sales in the U.S. thanks to the ramping up of the American video business via wholly owned subsidiary Avalanche and Sterling Home Entertainment (which is 50% owned by Lions Gate).

The TV division of Lions Gate was restructured during the year to move out of the high-risk, network series biz into the one-hour, off-network series area. Two shows developed during the year are now shooting: "Hope Island," for Pax Network, and "Cliffhangers," for Fox Family Channel. In addition, the TV unit expects to deliver three movies and one miniseries in the next fiscal year. Lions Gate acquired reality-based TV producer Termite Art Prods. during the past year and the company expects Termite to contribute significantly to TV revenues.

Montreal-based animation company Cine-Groupe, partly owned by Lions Gate, delivered 135 half-hours in the past year, including 44 episodes of "Funambule," 32 half-hours of "Jim Button," and 26 half-hours of "Bad Dog" and "Princess Sissi," the latter two made for Fox. During the year, Cine-Groupe also inked a co-production deal with SonyWonder for the Fox Family show "Mega Babies," which will begin delivery in fiscal 2000.

The net loss for the year is largely due to Lions Gate's investment in Mandalay Pictures, which led to losses for Lions Gate of $3.6 million. Lions Gate also wrote off $730,000 for certain development costs related to projects that have not gone into production, and it took a further one-time cash charge of $1 million related to severance and relocation expenses associated with centralizing management functions in Toronto.

For the fourth quarter, the company's revenue was $23.7 million, compared with $16.9 million in the same period a year earlier. The net loss for the last quarter of the year was $8 million or 31� a share, compared with a net loss of $370,000 or 1� a share for the fourth quarter last year.