Solid TV Production Revenue Reported at Lionsgate

SANTA MONICA: Lionsgate posted revenue of $553.6 million for the quarter ended June 30, up 35 percent from the prior-year quarter, thanks to gains in TV production revenue as well as across the motion picture business.

Increased television production revenue was led by strong growth in domestic TV series licensing and the inclusion of $27.3 million in revenue from Pilgrim Media Group, which more than offset declines from international TV sales and home entertainment revenue from television programming. Domestic TV series episodes and hours delivered in the quarter more than tripled those of the year-ago quarter.

Net income attributable to Lionsgate shareholders for the first quarter of fiscal 2017 totaled $1.3 million, compared to the prior-year quarter’s $40.7 million. Adjusted EBITDA of $40.7 million for the quarter compared to adjusted EBITDA of $71 million in the prior-year quarter.

Revenue from the motion picture segment was $362.5 million in the quarter, compared to $275.4 million. Theatrical revenue more than doubled in the quarter to $47.2 million, due to a larger wide release slate than in the prior-year quarter. TV revenues from the motion picture segment increased 10 percent to $53.3 million. Lionsgate’s home entertainment revenue from motion picture and TV production for the quarter was $150.3 million, a 16 percent gain, reflecting four wide theatrical releases compared to two wide theatrical releases in the prior year quarter.

International motion picture segment revenue increased 34 percent to $113.8 million in the quarter, driven by the box-office performance of Now You See Me 2 and the continued performance of Gods of Egypt, The Divergent Series: Allegiant and The Hunger Games: Mockingjay—Part 2.

The TV production segment delivered 64 episodes and 49 hours of domestic TV series in the quarter. International television revenue declined compared to the prior-year quarter that included revenue from Orange Is the New Black‘s international licensing deal with Netflix.

“In addition to a very solid performance across all of our businesses, the most significant development in the quarter was our agreement to acquire Starz,” said Lionsgate’s CEO, Jon Feltheimer. “Upon closing, it will be the largest and most transformative transaction in our history. The combination will accelerate the growth and diversification of both companies, deepening our portfolio of content, expanding our access to distribution, streamlining our pathways to the consumer and unlocking enormous opportunities for future growth.”