Lionsgate reports results for third quarter FY2025

Lionsgate And Lionsgate Studios Report Results For Third Quarter Fiscal 2025

SANTA MONICA, CA, and VANCOUVER, BC — Lions Gate Entertainment Corp. (NYSE: LGF.A, LGF.B) (“Lionsgate”) and Lionsgate Studios Corp. (Nasdaq: LION) (“Lionsgate Studios”) today reported third quarter results for the quarter ended December 31, 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 third quarter revenue of $970.5 million, operating income of $35.8 million, and net loss attributable to Lionsgate shareholders of $21.9 million or $0.09 diluted net loss per share on 240.2 million diluted weighted average common shares outstanding. Adjusted net income attributable to Lionsgate shareholders in the quarter was $68.4 million or $0.28 adjusted diluted net income per share on 241.3 million diluted weighted average common shares outstanding. Adjusted OIBDA was $144.2 million in the quarter.

“I’m pleased to report a strong quarter in which our businesses performed well in a challenging environment,” said Lionsgate and Lionsgate Studios CEO Jon Feltheimer. “We approach the separation of the studio and STARZ with a record performance from our library, our Motion Picture Group converting a number of midbudget films to profitability, our Television Group shepherding an extensive portfolio of premium properties and STARZ returning to domestic OTT subscriber growth on a sequential basis.” Trailing 12-month library revenue was a record $954 million, up 22% from the prior year quarter.

Third Quarter Results

The Studio Business, comprised of the Motion Picture and Television Production segments, reported revenue of $713.8 million, an increase of 3% from the prior year quarter. Studio Adjusted OIBDA was $112.0 million, up 45% compared to $77.4 million in the prior year quarter.

Motion Picture segment revenue and segment profit decreased to $309.2 million and $83.6 million, respectively. The decreases were due to the comparison with last year’s theatrical releases of The Hunger Games: The Ballad of Songbirds and Snakes and Saw X.

Television Production segment revenue increased 63% to $404.6 million while segment profit was up significantly to $60.9 million. Growth was driven by an increase in episodic deliveries, licensing of library content and the Company’s continued rebound from last year’s strikes.

Media Networks North American revenue was down slightly to $341.9 million while segment profit decreased to $25.7 million on higher content amortization, partially offset by lower marketing spend. North American OTT subscribers grew by 170K sequentially.

Media Networks

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.

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
                                        --------------------------------------------------------------------
Amounts in millions                      6/30/23   9/30/23  12/31/23   3/31/24   6/30/24   9/30/24  12/31/24
--------------------------------------  --------  --------  --------  --------  --------  --------  --------
Starz North America[1]
 OTT Subscribers                           12.51     12.73     13.43     13.38     13.20     12.40     12.57
 Linear Subscribers                         9.48      9.21      8.85      8.42      8.10      7.75      7.36
  Total                                    21.99     21.94     22.28     21.80     21.30     20.15     19.93
Other* [2]
 OTT Subscribers[3]                         3.03      3.06      2.45      2.52      2.62      3.05      2.31
Total Starz* 
 OTT Subscribers[3]                        15.54     15.79     15.88     15.90     15.82     15.45     14.88
 Linear Subscribers                         9.48      9.21      8.85      8.42      8.10      7.75      7.36
  Total Starz*                             25.02     25.00     24.73     24.32     23.92     23.20     22.24
 STARZPLAY Arabia[4]                        2.80      3.04      3.19      3.22      3.25      2.46      2.33
Total (including STARZPLAY Arabia*)[3]     27.82     28.04     27.92     27.54     27.17     25.66     24.57

Subscribers by Platform*:
 OTT Subscribers[3][5]                     18.34     18.83     19.07     19.12     19.07     17.91     17.21
 Linear Subscribers                         9.48      9.21      8.85      8.42      8.10      7.75      7.36
  Total Global Subscribers* [3]            27.82     28.04     27.92     27.54     27.17     25.66     24.57

* excluding territories exited or to be exited

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

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