After posting a loss in its year-ago figures, Lionsgate has reported a profit for the fiscal third quarter.
Lionsgate recorded net income of $193 million, versus a net loss of $31 million in the year-ago period. The earnings include a one-time tax benefit of $165 million from the new tax laws. Revenue was up 52 percent to $1.14 billion.
Lionsgate noted that with its acquisition of Starz, fiscal 2018 third quarter results are not directly comparable to prior reporting periods. The media networks segment revenues increased 6 percent to $382.9 million, driven by higher OTT revenue growth and revenues from worldwide digital media licensing arrangements, offset in part by subscriber losses at certain MVPDs. Segment profits increased 6 percent in the quarter to $128.3 million. Television production segment revenues of $227.3 million were down from the $231 million recorded in the prior-year quarter, as increased revenues from deliveries of TV series were partially offset by a decrease in syndicated licensing revenues. Segment profits of $22.7 million compared to $27.5 million in the prior-year quarter. Motion picture segment revenues increased 14 percent to $539.1 million, thanks to the strong domestic box-office performance of Wonder and the continued strong international performances of La La Land and American Assassin. Segment profits of $54.3 million compared to $55.9 million in the prior-year quarter.
“Our strong performance in the quarter, with robust contributions from our motion picture group and Starz, keeps us on track for our fiscal year expectations,” said Lionsgate’s CEO, Jon Feltheimer. “With this financial strength, we’re pleased to announce that our board has approved the resumption of our quarterly cash dividend, returning value to our shareholders as we continue to grow our company. Despite a disruptive operating environment, the quarter shows our success in creating premium content that cuts through the clutter of a crowded marketplace and our ability to supply it to a diverse array of media companies.”