Box-Office Flops Lead to Wider Loss for Seagram in Fiscal Third Quarter

MONTREAL — Seagram Co., which has remade itself by growing from a liquor maker into the world’s sixth-largest entertainment company, said its fiscal third-quarter loss widened as films such as “EDtv” bombed.

The owner of Universal Studios said its loss widened to $199 million, or 50 cents a share, from $21 million, or 6 cents, excluding gains a year ago. It was expected to have a loss of 54 cents, the average estimate of analysts polled by First Call Corp. Revenue in the quarter ended March 31 rose 7.5% to $3.22 billion from $2.99 billion.

Cash flow from music, which makes up most of Seagram’s business, rose 25%, lifted by cost cuts and hits from artists such as Andrea Bocelli. Still, box-office flops dragged down the company’s results, leading to a wider loss. Seagram Chief Executive Edgar Bronfman Jr., who runs the Hollywood unit, said it would be several quarters before film turns a profit.

“Seagram is still struggling with this film division, and that’s a problem,” said Ehrenkrantz, King, Nussbaum Inc. analyst Barry Hyman, who has a “buy” rating on the stock. “It shows how tenuous the profits are going to be in their movie business.”

The company’s cash flow--or earnings before interest, taxes, depreciation and amortization--fell 25%.

The company repeated Thursday in a conference call with analysts that it is committed to the film business, analysts said.