Lionsgate Revenue Up 34 Percent

SANTA MONICA/VANCOUVER: Lionsgate reported a narrower net loss for the second quarter of fiscal 2017, as solid results in its movie and TV businesses led to a 34 percent revenue increase.

Revenue for the quarter ended September 30 came in at $639.5 million, thanks to strong gains in both the movie and TV segments. Revenues from the motion picture group were up 31 percent, as the company had seven wide theatrical releases in the quarter, compared to three wide theatrical releases in the prior-year quarter. Television production revenues grew 43 percent, thanks primarily to $43 million in domestic TV revenue from the Pilgrim Media Group, acquired in November 2015, as well as the mix of television episodes delivered in the quarter.

Net loss attributable to Lionsgate shareholders for the quarter was $17.5 million, compared to the $42.1 million loss in the year-ago period. Adjusted EBITDA of $2.6 million for the quarter increased from adjusted EBITDA of negative $8.1 million in the prior-year period.

Overall motion picture segment revenue was $464.4 million. Theatrical revenue more than doubled to $62 million. Television revenues from the motion picture segment increased 16 percent to $69.3 million.

Lionsgate’s home entertainment revenue from motion picture and television production was up 5 percent to $160.7 million, with gains of 31 percent in motion picture digital home entertainment revenue and the strong home entertainment performance of Now You See Me 2. International motion picture revenue was up 56 percent to $168.3 million, again helped by Now You See Me 2.

Revenue in the television production segment came in at $175.1 million, led by a 76 percent increase in domestic television revenue, which offset declines in international television and TV home entertainment revenue.

“We achieved solid revenue gains across our core businesses, highlighted by another strong performance from our television group, in what we expect to be the last quarter for which we report Lionsgate financial results on a standalone basis,” said Lionsgate’s CEO, Jon Feltheimer. “We’re making great progress in planning the integration of Starz and Lionsgate, and next quarter we expect to report combined numbers that will begin to reflect the scope of our vertically integrated global content platform, supported by strong free cash flow generation and a more diversified income stream.”