Lionsgate has reported earnings of $51.1 million, or 23 cents a share, on revenues of $813.7 million for its first fiscal quarter ended June 30 — numbers that were above Wall Street estimates — amid the COVID-19 pandemic.
“We’re pleased to report a quarter with strong financial results in which all of our priorities were evident,” said Lionsgate CEO Jon Feltheimer. “During the quarter we took steps to monetize our film and television library, embraced innovative distribution strategies for our films, and acquired new properties while renewing others. Most important, it was a quarter in which we used all of our resources to continue growing a unique, valuable and scalable global streaming platform at Starz.”
Revenues were $38 million above Wall Street estimates and earnings per share outpaced the analyst consensus by 21 cents a share. The report was released Thursday after the stock market closed with revenues declining in motion picture and television production due to the COVD-19 pandemic.
Media networks segment revenue was flat from the prior year quarter at $367.3 million while segment profit increased 18.5% to $71.8 million driven by lower losses at Starzplay International. Starz Networks domestic over the top subscribers grew to 7.4 million in the quarter and the company’s global subscribers increased to 11.4 million in the quarter.
Motion picture segment revenue decreased by 29.4% to $280.7 million compared to the prior year quarter and segment profit was $101.1 million. Lionsgate said the performance reflects the impact of theatre closings related to the COVID-19 global pandemic, reduced theatrical expenses and increased home entertainment and library revenues.
Television production segment revenue decreased 30.1% to $195.7 million, primarily due to the timing of production schedules and episodic deliveries impacted by production delays related to the COVID-19 global pandemic, while segment profit increased 39.6% to $34.9 million reflecting the recent syndication of “Mad Men.”
In the previous quarter, Lionsgate took a charge of $50.5 million in the quarter that ended on March 31 due to the COVID-19 pandemic and related economic disruption — with $46 million reflected in direct operating expense.