The year of financial disappointment continues for Bond studio MGM

23-Jul-2002 • Bond News

Metro-Goldwyn-Mayer Inc - the film studio who own the James Bond franchise - have released even more disappointing financial news today.

The company reported a second-quarter loss of $121.8 million, or 48 cents a share, nearly doubling losses of $61.3 million, or 26 cents a share, reported in the year-ago period when MGM was hurt by poorly performing "What`s the Worst That Could Happen" and "Josie and the Pussycats". The biggest flop of all so far in 2002 has been the Nicolas Cage vehicle "Windtalkers" - which cost $120m but has so far only earned $37m.

In June, MGM said it expected a loss of 46 cents a share to 48 cents a share in the quarter. The weaker second quarter came on the heels of a difficult first quarter, when MGM earnings were rocked by poor box office performances for another World War II drama "Hart`s War" and action-adventure flick "Rollerball."

MGM is typically more vulnerable to a lackluster performance by any one movie than are its major Hollywood rivals because MGM doesn`t have diverse operations in television, theme parks, or radio that can offset a poor film.

MGM is now relying on 007 to rescue their share price. The James Bond gravy train can not come too soon for the flagging movie house, with "Die Another Day" due for release in November 2002.