Alliance Atlantis Communications Inc.'s loss widened in the second quarter as its entertainment group saw revenue drop and it took a charge to switch its head offices.
The Toronto-based company reported a loss of $12.2-million or 29 cents a share, compared with a loss of $6.7-million or 16 cents a year ago.
Revenue fell to $216.6-million from $242.6-million a year ago.
Operating losses in the quarter came in at $2.3-million, compared with an operating profit of $4.8-million.
In the quarter, the company took a $8.3-million lease abandonment charge as it moves it head office to one location.
Alliance said that it was changing its reporting schedule to reflect the Movie Distribution Income Fund's fiscal year end of Dec. 31. Its next quarterly report is due in early April.
"Our performance this quarter reflects our sustained commitment to disciplined execution and selective growth, and improving our overall financial strength," Michael MacMillan, Alliance CEO, said.
"We have made continued important progress in reducing our debt this quarter, and shareholders will see further significant improvement in this area in the third quarter as we apply the net proceeds of our successful Movie Distribution Income Fund IPO."
By segment, its broadcast group saw ad revenue jump 28 per cent, powered by its specialty channels. Alliance said its airing of the HBO series Six Feet Under has become the highest-rating English specialty TV series.
Revenue in its entertainment group fell to $46.6-million from $80.7-million a year ago, mostly as a result of the timing of deliveries of movies and mini-series. Its top-rated CSI series accounted for 35 per cent of its revenue in the second quarter.
"The CSI franchise continues to power our Entertainment Group, with new seasons of each of CSI: Crime Scene Investigation and CSI: Miami recording outstanding ratings on CBS," Mr. MacMillan said.
"Next fall (2004), CSI: Crime Scene Investigation will begin airing in weekend syndication on television stations in the U.S. running parallel to its Monday to Friday cable window on Spike TV."
Its motion picture distribution group, which it spun off a non-controlling interest into an income trust fund, saw its revenue rise to $121.1-million from $120-million a year ago. Releases in the quarter included Spy Kids 3-D: Game Over and Freddy vs. Jason. The company said it expects a strong performance from releases in the rest of the year, including the third Lord of the Rings and Kill Bill: Vol. 2.
