Lionsgate Earnings Rise on Strength of TV Production

SANTA MONICA: Revenue was up 11 percent at Lionsgate for the second quarter to $552.9 million, with a particularly strong performance from its television operations.

Adjusted EBITDA was $59 million, adjusted net income $33 million and net income $20.8 million.

Revenue for the Television Production segment rose to $154.9 million in the quarter, an increase of more than 140 percent compared to the prior-year quarter, with strong gains in both U.S. and international television as well as home entertainment revenue from television production. Fifty-five episodes and 38.5 hours of U.S. TV series were delivered in the quarter, including episodes of Manhattan, Anger Management, Orange Is the New Black, Houdini, Nashville and Mad Men, compared to 20 episodes and 11 hours in the prior-year quarter. Strong international sales of Orange Is the New Black, Nashville and Anger Management were also reported in the quarter.

Overall Motion Picture segment revenue for the quarter was $398 million compared to $434.4 million in the prior year quarter. Within the Motion Picture segment, theatrical revenue declined to $44.9 million with only two wide theatrical releases in the quarter, The Expendables 3 and Step Up All In.

Home entertainment revenue for the quarter was $164.4 million compared to $209.9 million in the prior year quarter due to strong performances from Managed Brands and Now You See Me in the prior year quarter partially offset by the strong home entertainment performance of Divergent in the current quarter. Home entertainment revenue from TV production increased in the quarter due to gains in digital media revenue.

Television revenue included in the Motion Picture segment more than doubled to $69.4 million in the quarter compared to $34.6 million in the prior year quarter, thanks to the pay-TV window opening for The Hunger Games: Catching Fire and the free-TV window opening for The Twilight Saga: Breaking Dawn – Part 1.

International Motion Picture segment revenue (excluding Lionsgate U.K.) for the quarter was $75.6 million compared to $88.7 million in the prior year quarter with three wide-release titles in worldwide release compared to five in the prior year quarter. Lionsgate U.K. revenue of $37.3 million in the quarter increased 38 percent compared to the prior year quarter.

"We're pleased that our entire portfolio of businesses contributed to our solid results in the quarter, driven by a particularly strong performance from our television operations," said Jon Feltheimer, Lionsgate's CEO. "It was a quarter in which we extended our franchises into new lines of business, continued to assemble a strong pipeline of new properties with great commercial potential and developed online platforms that will enhance our ability to deliver our content directly to the consumer."