Lionsgate report results for first quarter fiscal 2025

Lionsgate And Lionsgate Studios Report Results For First Quarter Fiscal 2025

SANTA MONICA, Calif., and VANCOUVER, BC — Lions Gate Entertainment Corp. (NYSE: LGF.A, LGF.B) (“Lionsgate”) and Lionsgate Studios Corp. (Nasdaq: LION) (“Lionsgate Studios”) today reported first quarter results for the quarter ended June 30, 2024. This press release includes consolidated financial results for parent company Lionsgate as well as operating results for Lionsgate Studios (also referred to as the “Studio Business”), comprised of its Motion Picture and Television Production segments.

Lionsgate reported first quarter revenue of $834.7 million, operating income of $18.8 million, and net loss attributable to Lionsgate shareholders of $59.4 million or $0.25 diluted net loss per share on 235.6 million diluted weighted average common shares outstanding. Adjusted net income attributable to Lionsgate shareholders in the quarter was $20.9 million or $0.09 adjusted diluted net earnings per share on 240.4 million diluted weighted average common shares outstanding. Adjusted OIBDA was $104.5 million in the quarter.

“We’re pleased to report a solid quarter despite unprecedented industry disruption and the aftereffects of the strikes,” said Lionsgate and Lionsgate Studios CEO Jon Feltheimer. “Our Motion Picture Group, STARZ and our library performed well, though financial results in our television segment reflected a heavily backloaded year. Importantly, we generated great momentum during and after the quarter by taking a number of steps toward full separation by calendar year-end, subject to the timing of normal regulatory approvals.”

Trailing 12-month library revenue was $882 million.

First Quarter Results

The Studio Business, comprised of the Motion Picture and Television Production segments, reported revenue of $588.4 million, a decrease of 5.9% from the prior year quarter. Studio Adjusted OIBDA of $58.3 million decreased by 5.5% from the prior year quarter.

Motion Picture segment revenue decreased by 15% to $347.3 million and segment profit increased by 24% to $86.1 million. The year-over-year revenue decline was due to the difficult comparison with the prior year’s first quarter, which included carryover theatrical revenue from John Wick: Chapter Four. Motion Picture performance was driven by strong theatrical results from The Strangers: Chapter One, robust home entertainment performances from several theatrical titles, and lower P&A spend and content amortization.

Television Production segment revenue increased 10% to $241.1 million while segment profit decreased 53% to $10.7 million. Revenue growth was driven by contributions from eOne, while segment profit growth was impacted by lingering impacts of the strike on the timing of deliveries in a heavily backloaded year.

Media Networks

North American revenue grew 1% to $345.3 million and segment profit grew 54% to $58.5 million. Revenue growth was driven by the June 2023 price increase and OTT subscriber growth, partially offset by linear declines. Segment profit growth was driven primarily by lower content amortization. North American OTT subscribers increased 5.5% to 13.2 million compared to the prior year quarter, while on a sequential basis, North American OTT subscribers decreased by 180K. Overall North American subscribers decreased by 500K sequentially. Earlier this week, STARZ notified its U.S. customers of a $1.00 rate increase to the service’s monthly cost.

Subscriber Data

The number of period-end service subscribers is a key metric which management uses to evaluate a non-ad supported subscription video service. We believe this key metric provides useful information to investors as a growing or decreasing subscriber base is a key indicator of the health of the overall business. Service subscribers may impact revenue differently depending on specific distribution agreements we have with our distributors which may include fixed fees, rates per basic video household or a rate per STARZ subscriber. The following table sets forth, for the periods presented, subscriptions to our Media Networks and STARZPLAY Arabia services, excluding subscribers in territories exited or to be exited:

                                                                                                As of     As of
                                                               --------------------------------------  --------
                                                                6/30/23   9/30/23  12/31/23   3/31/24   6/30/24
                                                               --------  --------  --------  --------  --------
                                                                                          (Amounts in millions)
                                                               ------------------------------------------------
Starz North America(1)                       
 OTT Subscribers                                                  12.51     12.73     13.43     13.38     13.20
 Linear Subscribers                                                9.48      9.21      8.85      8.42      8.10
  Total                                                           21.99     21.94     22.28     21.80     21.30
Other (excluding territories exited or to be exited)(2)
 OTT Subscribers(3)                                                3.03      3.06      2.45      2.52      2.62

Total Starz (excluding territories exited or to be exited)
 OTT Subscribers(3)                                               15.54     15.79     15.88     15.90     15.82
 Linear Subscribers                                                9.48      9.21      8.85      8.42      8.10
  Total Starz (excluding territories exited or to be exited)      25.02     25.00     24.73     24.32     23.92
STARZPLAY Arabia(4)                                                2.80      3.04      3.19      3.22      3.25
Total (including STARZPLAY Arabia and excluding 
      territories exited or to be exited)(3)                      27.82     28.04     27.92     27.54     27.17

Subscribers by Platform (excluding territories
      exited or to be exited):
 OTT Subscribers(3)(5)                                            18.34     18.83     19.07     19.12     19.07
 Linear Subscribers                                                9.48      9.21      8.85      8.42      8.10
  Total Global Subscribers (excluding territories
        exited or to be exited)(3)                                27.82     28.04     27.92     27.54     27.17

1. Starz North America represents subscribers in the U.S. and Canada.
2. Other consists of OTT subscribers in India.
3. Excludes subscribers in territories exited or to be exited in Australia, Latin America and the U.K. as follows:

                                                  As of     As of
                 --------------------------------------  --------
                  6/30/23   9/30/23  12/31/23   3/31/24   6/30/24
                 --------  --------  --------  --------  --------
                                            (Amounts in millions)
                 ------------------------------------------------
OTT Subscribers      1.59      1.58      1.10      0.57         -

4. Represents subscribers of STARZPLAY Arabia, a non-consolidated equity method investee.
5. OTT subscribers includes subscribers of STARZPLAY Arabia, as presented above.

Business Overview

Media Networks consists of the following product lines (i) Starz Networks, which includes the domestic distribution of STARZ branded premium subscription video services through over-the-top (“OTT”) platforms, on a direct-to-consumer basis through the Starz App, and through U.S. and Canada multichannel video programming distributors (“MVPDs”) including cable operators, satellite television providers and telecommunication companies (collectively, “Distributors”); and (ii) Other, which represents revenues primarily from the OTT distribution of the Company’s STARZ branded premium subscription video services outside of the U.S. and Canada.