Weak film slate dents Lionsgate’s Q2 results

The Vancouver-based mini-studio saw earnings and revenue fall ahead of the Nov. 22 release of The Hunger Games: Catching Fire (pictured).
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A weaker theatrical release slate and The Hunger Games home entertainment release in the prior year had Lionsgate on Friday releasing sharply lower second quarter earnings.

The Vancouver-based mini-studio beat estimates by posting a profit of $505,000, compared to earnings of $75.5 million in 2012, on overall revenue down 29% to $498.7 million.

Analysts had predicted Lionsgate would post $528.8 million in revenue during the second quarter.

The mini-studio missed that target as overall motion picture segment revenue fell 29% to $434.4 million, as more recent releases like Red 2 and You’re Next were no match for the wide releases in the same period of 2012.

The bottom line was also impacted by the home entertainment release of The Hunger Games last year, and a $36.2 million charge for the early extinguishment of debt during the latest financial quarter.

“We’re on track for another very good year and, with the worldwide launch of the next installment of our Hunger Games franchise on Nov. 22, the ongoing diversification of our television business and a strong and growing presence on digital platforms, we are positioned to deliver growth for many years to come,” Lionsgate CEO Jon Feltheimer said in a statement Friday ahead of the Nov. 22 release of The Hunger Games: Catching Fire.