Lionsgate recently released its third-quarter financial results following the spinoff of its studio business into a separately traded stock. Led by CEO Jon Feltheimer, the studio reported a significantly reduced net loss attributable to shareholders at $21.9 million, compared to $107.4 million the previous year due to Hollywood strikes impacting content production.
In the quarter ending on Dec. 31, 2024, overall revenue decreased to $970.5 million from $975.1 million in the same period the previous year. Despite this, the revenue exceeded analyst estimates by $48 million. Lionsgate also exceeded analyst expectations with an adjusted earnings per share of 28 cents and an adjusted OIBDA of $144.2 million.
Lionsgate is known for popular franchises like John Wick and The Hunger Games. In the latest quarter, the studio had successful releases like Best Christmas Pageant Ever, Den of Thieves 2, and Flight Risk. CEO Jon Feltheimer expressed satisfaction with the strong quarter despite challenges in the industry.
The studio extended its film licensing deal with Starz and is preparing for the separation of its studio operations from its pay TV and streaming business. Lionsgate anticipates a special shareholder meeting in mid-to-late April to vote on the proposed separation, with completion expected soon after. Feltheimer believes that Starz is well-positioned to capitalize on the shift towards streaming in the entertainment industry.
Lionsgate reported a record 22% increase in trailing 12-month library revenue to $954 million. The TV production revenue also rose by 63% to $404.6 million. The studio is currently working on several TV series and movies, including adaptations of popular works like Twilight and John Wick.
On the film side, Lionsgate has a strong slate of upcoming releases, including The Long Walk and Good Fortune. The studio is optimistic about the theatrical market rebounding post-pandemic and post-strikes. Additionally, the media networks division, mainly Starz, saw a decrease in segment revenue compared to the previous year.
In conclusion, Lionsgate’s latest financial results showcase a strong performance despite industry challenges, with promising developments in both its film and TV divisions.
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