Lions Gate Entertainment Corp. reported a deeper loss in the third quarter as merger costs and higher marketing expenses offset a 25 per cent rise in sales.
The Vancouver-based entertainment company reported a loss of $29.7-million (U.S.) or 36 cents a share, compared with a loss of $2.3-million or 7 cents a year ago. The company reported an operating loss of $33.3-million.
Revenue rose to $77.4-million from $61.8-million in the year-ago period.
In the quarter, the company took a $8-million charge related to merging with Artisan. It also recorded a $10-million writedown on the restructuring of its Montreal animation partner CineGroupe.
Lions Gate also saw higher marketing expenses with its theatrical and video releases, to the tune of $7-million.
“Our merger clearly positions us as the premier truly independent filmed entertainment studio in the industry,” Lions Gate CEO Jon Feltheimer said..
“We are ahead of schedule in achieving the successful integration of Artisan Entertainment.”
The company's motion picture revenue rose 24 per cent to $54.2-million from $43.6-million a year ago. Television sales jumped 40 per cent to $17.1-million from $12.2-million a year ago.
