Lionsgate has reported that they have lost $22 Million this quarter according to LA Times. The loss is mainly due to the purchase of Summit Entertainment. It is predicted when they report all of the Hunger Games and Twilight revenue they will pull ahead.The Santa Monica studio on Wednesday disappointed Wall Street as it reported a net loss of $22.7 million on revenue of $645.2 million in revenue during the quarter ended March 31.
The reason: $51 million in expenses related to its purchase of "Twilight" studio Summit Entertainment, as well as $53 million in costs to launch the blockbuster hit "The Hunger Games"at the end of the quarter.
Lions Gate shares fell 7% in after-hours trading Wednesday, as the results were far below analysts' estimates. They had expected on average net income of 25 cents per share. Instead, the company lost 17 cents.
Lions Gate has yet to report most of the revenue and profits it will receive from "Hunger Games," which was released March 23 and went on to make $396 million in domestic ticket sales. However, it had to immediately account for the cost of advertisements and thousands of film prints.
In a statement, the Santa Monica company's chief executive portrayed results from its fiscal fourth quarter as a temporary blip on the way to longer-term success from its teen movie franchises.
"With substantially all of the profitability of the first 'Hunger Games' film and this November's release of 'The Twilight Saga: Breaking Dawn -- Part 2' still ahead of us, we have great visibility and have set the stage for anticipated strong EBITDA, free cash flow and earnings in the year ahead," said Jon Feltheimer.