STARZPLAY International subscribers grew 98% in 2021

SANTA MONICA, Calif. and VANCOUVER, B.C. — Lionsgate (NYSE: LGF.A, LGF.B) today reported third quarter (quarter ended December 31, 2021) revenue of $885.4 million, operating income of $9.3 million and net loss attributable to Lionsgate shareholders of $45.6 million or 0.20 diluted net loss per share on 225.0 million diluted weighted average common shares outstanding.

Media Networks

Media Networks segment revenue of $388.9 million was down 4.3% compared to the prior year quarter. Excluding the revenue from our former Pantaya streaming service in the prior year quarter, Media Networks segment revenue was down 1.0% due to reductions in domestic linear revenue partially offset by growth in domestic streaming revenue and STARZPLAY International revenue. Segment profit decreased to $28.5 million driven by higher programming and marketing expense. Total Media Networks global subscribers increased to 31.4 million including STARZPLAY Arabia, a non-consolidated equity method investee, driven by robust international and domestic streaming subscriber growth. Global streaming subscribers increased 44% year-over-year to 19.7 million. STARZPLAY International subscribers grew 98% year-over-year to 8.5 million.

Media Networks consists of the following product lines (i) Starz Networks, which includes the domestic distribution of STARZ branded premium subscription video services through OTT platforms and Distributors and on a direct-to-consumer basis through the Starz App and (ii) STARZPLAY International, which represents revenues primarily from the OTT distribution of the Company’s STARZ branded premium subscription video services outside of the U.S. Through March 31, 2021, Media Networks also included Other Streaming Services, which represented primarily our formerly majority owned premium Spanish language streaming services business, Pantaya. The Company sold its interest in Pantaya on March 31, 2021.

Subscriber Data (Amounts in millions):

                                                                                 As of                         As of
                                                --------------------------------------  ----------------------------
                                                 6/30/20   9/30/20  12/31/20   3/31/21   6/30/21   9/30/21  12/31/21
                                                --------  --------  --------  --------  --------  --------  --------
Starz Domestic
 Linear Subscribers                                 11.6      11.5      11.5      10.9      10.4      10.2       9.9
 OTT Subscribers                                     7.4       9.2       9.5      10.0       9.7      10.4      11.0
  Total                                             19.0      20.7      21.0      20.9      20.1      20.6      20.9
STARZPLAY International
 Linear Subscribers                                  2.0       1.9       1.9       1.9       1.8       1.8       1.8
 OTT Subscribers                                     1.4       1.9       2.4       4.9       5.2       5.7       6.7
  Total                                              3.4       3.8       4.3       6.8       7.0       7.5       8.5
Total Starz
 Linear Subscribers                                 13.6      13.4      13.4      12.8      12.2      12.0      11.7
 OTT Subscribers                                     8.8      11.1      11.9      14.9      14.9      16.1      17.7
  Total Starz                                       22.4      24.5      25.3      27.7      27.1      28.1      29.4
STARZPLAY Arabia[1]                                  1.8       1.8       1.8       1.8       1.8       1.9       2.0
Total Domestic and International Subscribers[2]     24.2      26.3      27.1      29.5      28.9      30.0      31.4

Subscribers by Platform:
 Linear Subscribers                                 13.6      13.4      13.4      12.8      12.2      12.0      11.7
 OTT Subscribers[2][3]                              10.6      12.9      13.7      16.7      16.7      18.0      19.7
  Total Global Subscribers[2]                       24.2      26.3      27.1      29.5      28.9      30.0      31.4

1. Represents subscribers of STARZPLAY Arabia, a non-consolidated equity method investee.
2. Due to the March 31, 2021 sale of Pantaya, total domestic and international subscribers, OTT subscribers and total global subscribers amounts have been adjusted from amounts previously reported to exclude Pantaya for all periods presented in order to be consistent with the presentation at December 31, 2021.