Lionsgate Posts Higher Q4 Earnings

In its fourth-quarter financials, Lionsgate reported net income of $61.5 million, compared to the year-ago period’s $11.5 million.

Revenue of $1.26 billion was up from $791.2 million last year. With Lionsgate’s acquisition of Starz, fiscal 2017 financial results are not directly comparable to prior reporting periods, so the quarterly segment results were disclosed on a combined pro forma basis.

Media networks posted revenues of $370.8 million, up from $365.6 million last year on a combined pro forma basis. Segment profits increased a solid 10.7 percent in the quarter to $124.8 million.

Quarterly revenues within the motion picture segment increased 7.3 percent on a combined pro forma basis to $654 million, driven by the global blockbuster La La Land. Segment profit increased to $52 million from $2.5 million, as higher revenue more than offset operating expenses and marketing spend.

The television production segment faced a tough comparison with the prior-year quarter, which included the international delivery of four seasons of Orange Is the New Black. Revenues for the fourth quarter ended March 31 were $242.6 million on a combined pro forma basis. Segment profit decreased to $13 million from a record $42.1 million last year.

Lionsgate’s backlog—or already contracted future revenue on the licensing of film and television product not yet recorded—was $1.4 billion at the end of Q4.

“We’re pleased to report our first full quarter of financial results since we brought Starz into the Lionsgate family, and the numbers reflect a great finish to a strong year,” said Lionsgate’s CEO, Jon Feltheimer. “Our film slate ended fiscal 2017 with an impressive box office run, our Television Group turned in another standout performance and Starz had a great year. We couldn’t be more pleased with how successfully we’re integrating them into our operations and, working together, unlocking fresh opportunities.”

Full-year revenue came in at $3.2 billion, and net income attributable to Lionsgate shareholders was $15 million. The results included $89 million in restructuring and other costs primarily related to Lionsgate’s acquisition and integration of Starz.