Headline, Industry News

Movie Income Fund Q4 profit rises

TORONTO (CP) _ Movie Distribution Income Fund (TSX:FLM.UN) said Wednesday the limited partnership’s fourth-quarter profit rose to $18 million from $14.1 million a year earlier, primarily on foreign exchange gains.

Consolidated revenue for the three months ended Dec. 31 was $138.3 million, up 21 per cent from $114.3 million the year before, with increases in all territories.

Movie Distribution Income Fund holds an indirect 49 per cent interest in Motion Picture Distribution LP while Alliance Atlantis Communications Inc. (TSX:AAC.B) indirectly holds the remaining 51 per cent.

Last month, CanWest Global Communications Corp. (TSX:CGS) paired up with Wall Street bank Goldman, Sachs & Co. to acquire Alliance Atlantis in a $2.3-billion deal.

Under the proposed deal, a Canadian partner of GS Capital Partners, a private equity affiliate of the New York-based bank involved in the acquisition, would take control of Alliance’s interest in Motion Picture Distribution.

In Canada, the partnership’s revenue rose to $86.1 million from $65.5 million, as weaker theatrical slate was more than offset by stronger DVD releases in the quarter.

DVD sales included Passe-Partout, Bon Cop Bad Cop, Clerks II and Fearless.

Television revenue increased to $25.5 million from $15.4 million, while total library sales in Canada during the quarter were $25.9 million.

In the United Kingdom, revenue of $36.6 million was up slightly from $35.9 million the year before, while revenue in Spain was $15.6 million _ a 21 per cent increase.

The unrealized foreign exchange gain for the quarter was $2.9 million, compared to a loss of $900,000 in the prior year’s quarter.

"Despite a year of challenges, our model of distributing a portfolio of movies across a variety of platforms continued to show strength and resiliency," stated CEO John Bailey.

"Our Canadian operations benefited from a solid DVD slate and continued strong sales from our domestic library of 3,600 titles."

For the year, the partnership’s net income was $42.8 million, compared with $28.6 million in 2005. Consolidated revenue rose to $449 million from $431.2 million in the prior year’s period.

Looking forward, the company is expecting to generate solid sales from the expanded release of Oscar-nominated film Pan’s Labyrinth, as well as Rush Hour 3, The Golden Compass, Grind House, and Hairspray.

On the TSX Wednesday morning, Movie Distribution units were unchanged at $8.40.