Lionsgate Returns to Profit in Q1

SANTA MONICA: Although its revenues were down, to $261.3 million, Lionsgate posted a net profit in the first quarter of $12.2 million, as compared with the year-ago net loss of $64.1 million.

The company attributed the profit to lower theatrical marketing costs, increased contributions from its TV business, lower costs from shareholder activism and improved results at the joint-venture channel EPIX. The reduced revenues were caused by a smaller theatrical slate, with just one wide release in the period.

"Our strong performance in the quarter reflected significant contributions from our television business and our share of the EPIX channel as well as decreased costs in several areas," said Jon Feltheimer, co-chairman and CEO of Lionsgate. "Our rapid and accelerating transition from traditional to new digital businesses, both domestically and internationally, is helping to drive our progress and positioning us for future growth, and we’re very excited about our upcoming slates that highlight our momentum in building new film and TV franchises as well as extending our existing brands."

Motion picture revenues fell 29 percent to $192.6 million, including theatrical revenues of $27.1 million (down 62 percent), home entertainment revenues of $92.9 million (a 32-percent decrease), TV revenues of $43.3 million and international revenues of $11.6 million. Lionsgate U.K. contributed $12.5 million, while Mandate Pictures’ revenues were $9.8 million.

A strong area for the company was TV production, with revenues up 27 percent to $68.7 million, with U.S. series licensing up 24 percent to $49.9 million and international licensing revenues up 61 percent to $12.6 million.