Lionsgate Projects Q2 Loss on Box Office Duds 'Abduction,' 'Warrior,' 'Conan'
The mini-major predicts a second quarter loss of between $40 million and $50 million.
TORONTO – Lionsgate Entertainment on Monday warned it stands to lose between $40 million and $50 million in its current fiscal quarter, due in part to poor box office from Conan the Barbarian, Warrior and Abduction
Lionsgate recently saw all three movies fail to gain traction out of the gates, leading to theatrical revenue shortfalls.
The disclosure of preliminary results for the three months to September 30 were contained in an SEC filing, where Lionsgate said it expects to post an overall quarterly loss before interest, tax provisions and other one-time items of between $42 million and $56 million.
Lionsgate also signaled via a preliminary prospectus that it is to sell around 22 million shares that belong to Carl Icahn as the billionaire investor cashes out of the mini-major.
Vancouver-based Lionsgate and Icahn unveiled a recent agreement that enabled the purchase from Icahn of up to just over 22 million shares at $7.00 each.
Lionsgate said it intends to release its latest financial results in the first half of November.