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  Video, DVD Boost MGM Film Studio Profits
Time: 12:29 EST/17:29 GMT | News Source: Yahoo News | Posted By: Matthew Sabean

Film studio Metro-Goldwyn-Mayer Inc. on Wednesday reported a sharper than expected rise in fourth-quarter earnings as strong video and DVD sales of films like "Legally Blonde" boosted revenue. After accounting changes, MGM reported net income of $39.1 million, or 16 cents per share, compared with $12.4 million, or 6 cents per share, a year earlier. On Dec. 17, MGM said it expected to earn 12 cents a share after the effect of new accounting rules governing film marketing costs and 6 cents a share before the accounting changes. Fourth-quarter revenues rose 29 percent to $375.5 million from $292 million a year earlier. The studio also said its earnings before interest, taxes, depreciation and amortization, an important measure of performance in the entertainment industry, rose 76 percent to $64 million.

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