Lionsgate, currently embroiled in a fight to save the studio from a hostile takeover by activist investor and noted corporate raider Carl Icahn, said on Thursday that its preliminary fiscal-year results were better than the company originally thought.
The studio said preliminary 2010 adjusted earnings will exceed $115 million — 50 percent higher than the $75 million Lionsgate reported in February.
“Our preliminary fiscal 2010 financial results show that our strong product pipelines, coupled with the continued recovery of the retail and advertising markets, are helping our home entertainment and television businesses to outperform our previous expectations,” said Lionsgate co-chair and CEO Jon Feltheimer said in a statement. “The continued growth of VOD and other on demand revenue streams has also been a recent catalyst for strong revenue.”
Feltheimer added: “We remain on track to achieve the significant free cash flow generation for fiscal 2013 to 2015 of $100 million to $125 million annually.”
This week, Lionsgate appealed a Canadian regulator’s ruling that would’ve allowed investors to vote directly on a $7-per-share tender offer Icahn. A so-called "poison pill" clause had been adopted by the company’s board to block a potential hostile takeover by Icahn.
The appeals court is set to hear the motion next Monday.
More to read:
Lionsgate Urges Shareholders to Reject Icahn’s Latest Offer
Lionsgate Appeals ‘Poison Pill’ Ruling