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Lionsgate’s television production saw revenue and profit surge, driven by an increase in episodic deliveries, licensing of library content and an ongoing rebound from Hollywood strikes.
Motion pictures continued softer although that has turned around in the current quarter. Total revenue of $970 million, down a hair from $905 million, was well above Wall Street forecasts. Net losses narrowed sharply to $18.5 million from $107.4 million.
TV production saw revenue surge 63% to $405 million in the last three months of 2024, Lionsgate’s fiscal third quarter, with segment profit of $60.9 million, up from $9.1 million.
Trailing 12-month library revenue, a key driver for the company, grew 22% to a record $954 million.
The motion picture business saw revenue and segment profit decreased to $309 million (from $443 million) and $83.6 million (from $100.4 million), respectively, on tough comparisons with last year’s theatrical releases of The Hunger Games: The Ballad of Songbirds and Snakes and Saw X. The studio had a tough second half of 2024 until Best Christmas Pageant Ever hit in November. It reversed the trend in the current quarter with two top January openings in Den of Thieves: Pantera and Flight Risk.
Overall, studio revenue of $713.8 million nosed up 3% from the prior year quarter. Operating income of $112 million, jumped 45%.
Revenue and profit dipped at Starz. North American OTT subscribers grew by 170k sequentially. Revenue went to $344 from $417 and profit fell to $25 million from $85 million.
The Lionsgate Studios and Starz will soon split into two standalone companies.
“I’m pleased to report a strong quarter in which our businesses performed well in a challenging environment,” said CEO Jon Feltheimer.
“We approach the separation of the studio and STARZ with a record performance from our library, our Motion Picture Group converting a number of midbudget films to profitability, our Television Group shepherding an extensive portfolio of premium properties and STARZ returning to domestic OTT subscriber growth on a sequential basis.”
