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Media

Lions Gate Swings to surprise Q2 loss

Disappointing box-office figures hurt the entertainment company's results.

Lions Gate Entertainment (NYSE:LGF) reported second-quarter results that lagged behind analysts’ estimates partly due to disappointing box-office figures.

Net loss was $42.1mln, or $0.28 loss per diluted share for the three months ended September 30, compared to net income of $20.8mln, or $0.15 per diluted share, a year earlier, the Santa Monica, California-based company said in a statement on Monday.

Excluding some items, net loss was $0.19 per share. Analysts had expected adjusted profit of $0.06 per share.

Revenue of $476.8mln missed the $484.6mln average of 14 analysts’ estimates.

The box office failures highlight the pressures on the studio to find new film properties as its marquee young-adult franchise “The Hunger Games” comes to an end this year.

“The Last Witch Hunter, made at an estimated cost of $90mln, was flagged by the studio as a potential series. Instead it triggered a $7.2mln write-off. “American Ultra” also flopped during the period.

The shares dropped as much as 13% in extended trading on Monday.

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