Lionsgate Profit, Revenue Down

SANTA MONICA: Lionsgate has reported lower first-quarter earnings and revenues, with soft performances in its film and home entertainment businesses.

The company saw earnings of $40.7 million for the three months that ended June 30, compared to $43.3 million in profit posted in the same period a year ago. Revenues for the quarter were $408.9 million, down from the year-ago period's $449.4 million.

Television production segment revenue was up 14 percent to $133.6 million in the quarter, compared to $117.5 million in the same quarter last year, driven by a 73 percent increase in international television revenue, with licensing revenue from the first three seasons of Orange Is the New Black. This growth offset a decline in domestic television revenue, due to timing of deliveries.

Revenue for the motion-picture segment was $275.4 million, compared to $331.9 million in the prior-year quarter. Within the segment, theatrical revenue declined to $23.1 million. While the one wide release in the quarter, The Age of Adaline, had a strong theatrical box office performance, the company recorded only its distribution fee as theatrical revenue under the terms of its distribution arrangement with Lakeshore Entertainment.

Lionsgate's home entertainment revenue from motion picture and television production for the quarter was $129.5 million, compared to $140.9 million in the prior-year quarter, with four recent wide-release theatrical titles distributed on home entertainment platforms, compared to five wide-release theatrical titles distributed in the prior year quarter. The decline offset gains from increased home entertainment revenue from television programming.

Television revenue included in the motion picture segment of $48.4 million in the quarter compared to $58.8 million in the year-ago quarter. International motion-picture-segment revenue for the quarter was $84.8 million, compared to $90.7 million.

"We're pleased to report strong financial results with continued robust free cash flow contributing to the strongest balance sheet in the company's history," said Lionsgate's CEO, Jon Feltheimer. "We believe that we're exceptionally well positioned to use the depth of our film and television pipelines, our natural advantages as a global content company with few legacy constraints and the strength of our capital structure to continue moving quickly and opportunistically in a dynamic and disruptive industry environment."