Lionsgate loss dims forecast
Studio stock tumbles to six-year low
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Film was the glaring weakness when the company reported a net loss of $93.4 million Monday vs. a year-earlier profit of $7.3 million. Execs blamed underperforming releases "The Spirit," "Punisher: War Zone" and "Transporter 3."
But during a conference call with analysts Tuesday, they provided figures that more fully reveal the damage done by the recent slate.
Lionsgate now expects full-year B.O. of $400 million, down from an earlier estimate of $550 million, and margins of 5%, down from 15%.
The number of releases in fiscal 2010, which begins in the spring, will be trimmed to about 12 from the 15 or 16 set for the current year. Production spending will be cut by $100 million, execs said, and release dates will receive more careful scrutiny.
Shares plunged 26.5% on the news, finishing at $3.92, their lowest level since 2003.
"The primary contributor to this quarter's loss, as well as the shortfall for the year, is the significant underperformance of our feature film business," Lionsgate chief exec Jon Feltheimer underlined during the call.
