Lionsgate Reports Weaker Q2 Revenues

SANTA MONICA: Revenue of $498.7 million for the second quarter at Lionsgate declined by 29 percent from the same period a year ago, mainly due to a tough comparison that included the home-entertainment release of The Hunger Games as well as timing of TV deliveries.

Adjusted EBITDA of $56.5 million in Q2 2013 compares to the adjusted EBITDA of $109.7 million in the prior year quarter.

Net income was $500,000, which is far less than last year's Q2 results of $75.5 million.

Within the motion picture segment, revenue for the quarter was $434.4 million, a decline of 29 percent, due to a theatrical slate that only included two wide releases: Red 2 and You're Next. Lionsgate's home entertainment revenue from both motion pictures and television was $209.9 million, compared to $277.8 million for the prior year quarter. Television revenue included in the motion picture segment was $34.6 million, compared to the $35.5 million in Q2 2012. International motion picture revenue—excluding Lionsgate U.K.—declined to $88.7 million from $108 million. Lionsgate U.K. revenue was $27.1 million, a decline from the previously reported $48.4 million.

Revenue in the TV production segment was $64.3 million, compared to $99 million. Declines were due to the timing of domestic television deliveries, which were offset by gains in international revenue from hit series such as Orange Is the New Black and Anger Management.

"We completed a strong first six months of the year with a solid second quarter in which we generated robust free cash flow, continued to delever our balance sheet and lowered our interest expense," said Jon Feltheimer, Lionsgate's CEO. "We're on track for another very good year and, with the worldwide launch of the next installment of our Hunger Games franchise on November 22, the ongoing diversification of our television business and a strong and growing presence on digital platforms, we are positioned to deliver growth for many years to come."