Metro Goldwyn Mayer Narrows Loss

Metro Goldwyn Mayer(MGM Quote) said Thursday that it narrowed its first-quarter loss on a 25% revenue increase.

The company lost $55.8 million, or 22 cents a share, compared with a loss of $90.8 million, or 37 cents a share, in the previous-year quarter. Analysts had predicted a loss of 21 cents a share.

Revenue was $395.2 million, compared with $315.1 million in the prior-year quarter. The company said worldwide home entertainment revenue increased 16% and worldwide DVD unit shipments increased 25%.

"This quarter marks an inflection point for MGM in terms of generating significant free cash flow, which we plan to allocate towards stock buybacks, debt reduction and acquisition opportunities," said Alex Yemenidjian, chief executive of the company. The company had $108.3 million in net cash during the quarter.

Shares of the Santa Monica, Calif.-based company closed at $11.65 Wednesday.