A surge in TV production lifted second quarter revenues for Lionsgate Entertainment Corp. to $552.9 million, an 11 percent increase from a year ago, the entertainment giant reported after market close Thursday.
Liongate posted adjusted earnings of $59 million and net income of $20.8 million, or 15 cents per share, for the quarter which ended Sept. 30. Analysts had predicted that earnings would come in at 11 cents a share.
The gains in TV production — up more than 140 percent — and theatrical revenue from pay and free TV windows offset declines in the film and home entertainment divisions during the quarter.
TV production revenue rose to $154.9 million in the quarter, compared to $64.3 million in the prior year quarter, with strong gains in both its domestic and international sectors.
55 episodes and 38.5 hours of domestic television series were delivered in the quarter, including episodes of “Manhattan,” “Anger Management,” “Orange is the New Black,” “Houdini,” “Nashville” and “Mad Men.” Strong international sales of “Orange is the New Black,” “Nashville” and “Anger Management” helped as well.
With “The Hunger Games: Catching Fire” hitting pay TV and “The Twilight Saga: Breaking Dawn – Part 1” arriving on free TV, revenue in that sector more than doubled to $69.4 million compared to $34.6 million in the prior year quarter.
The TV gains helped offset a tough quarter for film, which saw revenue plunge to $398 million from $434 million a year ago.
Sly Stallone’s “The Expendables 3” fired box-office blanks, and the only other release in the quarter was “Step Up All In.” It didn’t help that the year-ago quarter included the breakout hit “Now You See Me” and the record-setting Spanish-language release from Pantelion Films “Instructions Not Included.”
Things should brighten considerably on the film side in the next quarter however, with “The Hunger Games: Mockingjay – Part 1” set for release on Friday, Nov. 21.