Lionsgate Quarter Beats Street as Film Sales Rise and Profits Rise Across All Divisions

Lionsgate’s revenue rose from $858 million to more than $1 billion in its most recent quarter, thanks to a nearly 80% increase in its motion picture division.

The net loss of $888 narrowed from $1.8 billion a year ago, due to some large one-time charges. The adjusted figures all exceeded Wall Street forecasts. Shares rose more than 10%.

September marks the end of Lionsgate’s second fiscal quarter.

Starz’s domestic OTT subscriber base continued to grow, growing by 200,000, and its total global OTT subscriber base increased by 480,000 sequentially on a pro forma basis.

Costs: $876 million of Media Networks-related expenses in the quarter included a $212 million restructuring charge due to Starz’s withdrawal from the UK and Latin America and the write-off of non-core domestic series and one non-core series $664 million series. -Cash goodwill and brand name impairment.

In the motion picture segment, revenue increased by 77% to $395.9 million and profit by 22% to $67.5 million. The growth came from the power in John Wick: Chapter Four Home entertainment and the impact of retained earnings from theatrical releases in the first six months of fiscal 2024. Continued library strength also drove the increase.

In television production, segment revenue fell 9% to $393.9 million due to the strike, while profit increased from $13.6 million to $63.2 million due to the delivery of television production. John Wick previous series of events The Continentals to Peacock and Amazon Prime Video.

And media networks reported a 5% year-over-year revenue increase to $416.5 million thanks to growth in domestic streaming revenue and Lionsgate+, partially offset by lower domestic linear revenue. Profit rose from $21 million to $66.6 million.

Domestic OTT subscribers returned to growth in the quarter (+200,000) and total global OTT subscribers increased sequentially by 480,000 on a pro forma basis.