Lionsgate narrows quarterly loss as TV business recovers after strike

Quarterly loss narrowed lions gate The company’s TV business rebounded from the twin strikes that halted production for much of 2023, with revenue increasing.

The company, which produces the “Hunger Games” and “John Wick” series, had sales of $1.12 billion in the three months ended March, up from $1.08 billion in the same period a year earlier. Lionsgate also reported a net loss attributable to shareholders of $39.5 million, which compares favorably with a loss of $96.8 million in the same period last year. The company reported a loss of 22 cents per share in the period. In the same period last year, Lionsgate’s loss per share was 42 cents. Lionsgate’s revenue exceeded Wall Street expectations of $1.11 billion.

The earnings report comes after Lionsgate Studios debuted as an independent public company on May 14, trading as a single class of stock under the Nasdaq ticker symbol LION. This is a step toward complete separation of studio operations and Starz. Through a merger with special purpose acquisition company Screaming Eagle Acquisition Corporation, Lionsgate Studios willRaised $350 million from a group of investorsThe company’s valuation was about $4.6 billion.

The Company continues to expect that the complete separation of Lionsgate Studios from Lionsgate (i.e., Starz) will occur by the end of calendar 2024. Currently, Lionsgate holds approximately 87% of the total equity interests in Lionsgate Studios, which consists of Lionsgate’s film group and television studios segments and its film and television library of more than 20,000 titles.

Lionsgate’s television business was the star of the quarter, with hit shows like “Ghosts.” The division’s revenue increased 61% to $469.3 million, and profit increased 83% to $52.6 million. This is due to a combination of library sales and “post-strike content distribution.” In the movie business, it was difficult to compare with the same period last year, when “John Wick: Chapter 4” was released. Revenue fell 23% to $410.6 million, and segment profit fell 12% to $82.2 million.

Lionsgate’s Media Networks business, which includes its streaming services, struggled, losing 480,000 U.S. net subscribers and causing division revenue to fall 7.1% to $361.5 million. Division profit fell 28.4% to $52.5 million.

Lionsgate stock rose slightly after the quarterly results were released. Thursday’s closing price was down 2.49%.

Todd Spangler contributed to this report.