Lionsgate Tops Earnings Estimates for Q3

Studio earns 65 cents per share, up from 64 cents analysts expected, on “growing margins across our businesses,” says company CEO

insurgent

Lionsgate reported Q3 2014 earnings on Thursday after the U.S. stock market closed, topping Wall Street’s estimates.

The company reported earning $0.65 per share, while analysts had been forecasting $0.64. Lionsgate also reported revenue of $751.3 million, adjusted EBITDA of $146.8 million, adjusted net income of $110.0 million or $0.79 adjusted basic net income per share and net income of $98.2 million, for the third quarter of fiscal 2015 ending on Dec. 31, 2014.

The company’s revenue of $751.3 million for the quarter declined 11 percent from $839.9 million in the prior year quarter.

“Our strong financial results in the quarter were driven by growing margins across our businesses,” said Lionsgate Chief Executive Officer Jon Feltheimer. “Our television division had another stellar quarter as it continues to emerge as a leading supplier of premium scripted content, and our film business achieved strong profitability with a diverse portfolio of films. We’re also pleased to see our digital initiatives beginning to deliver incremental revenue and profits, and we expect their contributions to continue to grow.”

The numbers come amid declines in the company’s motion picture unit, which was offset by gains in television production, where revenue nearly doubled. Revenue for the Television Production segment rose to $161.2 million in the quarter, nearly doubling the $82.3 million in the prior year quarter, thanks to strong showings for shows including “Anger Management,” “Orange is the New Black,” “Nashville” and “Mad Men.”

Meanwhile, revenue from film production dropped a significant 22 percent to $590.1 million from the same quarter a year prior, a result of only two wide releases, “The Hunger Games: Mockingjay Part 1” and “John Wick.” The same quarter a year prior saw four wide releases, “The Hunger Games: Catching Fire,” “A Madea Christmas,” “Ender’s Game” and “Escape Plan.”

The company’s revenue from its home entertainment division also saw a decline, 10 percent to $200.7 million.

Comments