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IN BRIEF / Entertainment

MGM Posts Loss but Expects Profit for Year

April 24, 2002|Bloomberg News

Metro-Goldwyn-Mayer Inc said its first-quarter loss widened but that it expects to be profitable for the year.

The company posted a loss of $90.8 million, or 37 cents a share, compared with $17.5 million, or 8 cents, excluding a one-time cost of $382.3 million a year earlier for a change in film-accounting rules. Sales fell 8.4% to $315.1 million.

MGM said in February that recent film releases, especially "Rollerball" and "Hart's War," hadn't met expectations and cut its first-quarter and 2002 profit forecasts. Two other important films for MGM this year will be "Windtalkers" in June and the James Bond movie "Die Another Day" in November.

Shares of the Santa Monica-based company rose 20 cents to $16.49 on the New York Stock Exchange.

MGM expects to report a narrower loss and higher revenue in the second quarter, Chief Financial Officer Daniel Taylor said. The firm is likely to turn a profit in the third and fourth quarters, he said.

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