Lionsgate Delivers Strong Q2

SANTA MONICA/VANCOUVER: Lionsgate reported revenue of $707 million for its second quarter, up 97 percent from the prior year, lifted by gains from the home-entertainment release of The Hunger Games.

Net income of $75.5 million compared to the net loss of $25.3 million in the prior year’s quarter. This profitability was driven by the strong theatrical box-office and home-entertainment performances of several of the company’s feature films, notably the DVD and digital release of The Hunger Games.

Motion-picture revenue for Q2 was $608 million, surging 178 percent from Q2 2011. Theatrical revenue was $116.2 million, a fivefold increase, led by the strong performances of The Possession, The Expendables 2, Step Up Revolution and Madea’s Witness Protection. Home-entertainment revenue was $277.8 million, an increase of 59 percent. This was driven by the releases of The Hunger Games, Cabin in the Woods, What to Expect When You’re Expecting, Safe and Friends with Kids. TV revenue included in motion-picture revenue was $35.5 million, an increase of 26 percent. Television production revenue was $99 million, which was down 29 percent. The increase in domestic series licensing from Lionsgate Television was offset by fewer deliveries from the Debmar-Mercury syndication arm and lower digital media revenue (a tough comparison with the prior-year quarter, which included the delivery of the first four seasons of Mad Men to Netflix).

"The quarter reflected many of the core values that have driven our growth over the past 12 years—creation and renewal of major film franchises, strong and consistent library performance and contributions from our diverse mix of businesses worldwide," said Lionsgate Chief Executive Officer Jon Feltheimer. "With the home entertainment release of the first film in our Hunger Games franchise making significant contributions to our results in the quarter, we’re clearly on track to meet or exceed our expectations this year."