Lionsgate wasn’t immune from the summer box office slump which was reflected in soft quarterly earnings, although the company benefited from a strong performance from cable network Starz.

After markets closed Thursday, the mini-major studio reported $941 million in revenue and earnings of 30 cents a share for the three months ended September 30, which the company classifies as its fiscal first quarter. As Lionsgate closed its purchase of Starz during the fourth quarter of last year, direct comparisons to the prior year are not applicable.

“Our strong performance in the quarter keeps us on track for our fiscal year expectations, and our robust free cash flow is enabling us to continue our consistent deleveraging ahead of schedule,” Lionsgate Chief Executive Officer Jon Feltheimer said in a statement accompanying the earnings.

“Starz continued to report strong overall subscriber gains, with its direct to consumer offering leading the way. Our ability to leverage our strengths, mitigate risk and focus on segments where we can continue to win puts us on a strong, profitable growth path.”

Starz added 400,000 subscribers for its over-the-top service during the quarter, swelling its streaming base to 2 million. The company also announced it has entered into an agreement to bring its content to Hulu, further doubling down on internet TV.

Also Read: Lionsgate Picks Up 'Shaun the Sheep' Sequel and 4 Other Studiocanal Movies

Lionsgate released just four films in the three months ending in September, with Summit Entertainment’s “The Hitman’s Bodyguard” grossing more than $176 million worldwide. “American Assassin,” starring Michael Keaton and Dylan O’Brien, hauled in $61 million globally.

As a result, motion picture revenues fell 24 percent compared with the same time last year. Through November 5, Lionsgate ranked sixth out of all studios by market share, with 8.4 percent of the total domestic box office.

More recently, the company bolstered its film department, hiring Good Universe Co-Founder Joe Drake to serve as co-chair of its Motion Picture Group alongside Patrick Wachsberger.

Also Read: Lionsgate COO Andrew Kramer Left After Harassment Allegation (Report)

Lionsgate’s TV production division also saw its revenue dip 5 percent year-over-year, but media networks made up for some of that, rising 7 percent on Starz’s success attracting more customers to its over-the-top streaming service.

The company will hold a conference call to discuss the earnings report at 5:30 p.m. ET.

10 Biggest Billion-Dollar Entertainment Deals in 2016 (Photos)

Media and entertainment dealmakers returned in full force this year after a quiet 2015, as there were nine mergers and acquisitions valued at more than $1 billion -- from Chinese buyers such as the Dalian Wanda Group to AT&T, which agreed to acquire Time Warner for $85 billion. Here's a rundown of the biggest.
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10. Disney buys a minority stake in BAMTech

Price tag: $1 billion

In August, the Mouse House announced that it paid $1 billion for a 33 percent stake in streaming video technology company BAMTech, which was spun off from Major League Baseball’s MLB Advanced Media. Disney plans to use BAMTech’s technology to launch a standalone ESPN streaming service – but without the same content as linear ESPN.
Disney
9. Dalian Wanda Group buys Dick Clark Productions

Price tag: $1 billion

The real estate and entertainment conglomerate owned by China’s richest man continues to snap up showbiz companies by the billion, acquiring the Golden Globes and American Music Awards producer for a cool $1 billion earlier this month.
Dick Clark Productions
8. Rovi acquires TiVo

Price tag: $1.1 billion

Video technology firm Rovi Corp., bought the pioneering live-TV recording tech company for $1.1 billion in a deal that was finalized in September. After the deal was complete, Rovi adopted the better-known TiVo name.
Getty Images
7. AMC Theatres buys Carmike Cinemas

Price tag: $1.2 billion

Wanda-owned AMC Theatres acquired Carmike, the U.S.’ fourth-largest exhibitor, forming the biggest theater chain in the country with more than 600 theaters. That surpasses Regal Entertainment, which operates 565 locations.
AMC/Carmike
6. AMC Theatres buys Odeon & UCI Cinemas

Price tag: $1.2 billion

AMC also added Odeon & UCI Cinemas, Europe's biggest chain, to its ever-expanding suite of cinemas. AMC will rename the company to Odeon Cinemas Group and maintain its London headquarters.
AMC/Odeon & UCI
5. Dalian Wanda Group buys Legendary Entertainment

Price tag: $3.5 billion

Wanda was responsible for the first megadeal of 2016, when it acquired the “Jurassic World” production company for $3.5 billion. Legendary lost $500 million in 2015, but its action-packed fare such as “Warcraft” is popular in China’s fast-growing movie market.
Legendary/Wanda
4. Comcast's NBCUniversal buys DreamWorks

Price tag: $3.8 billion

The blowout success of animated films like “Zootopia” and “Finding Dory” was one of the stories of 2016, and NBCU doubled down on the genre by adding the “Kung Fu Panda” and “Shrek” studio to its fold.
DreamWorks
3. Lionsgate merges with Starz

Price tag: $4.4 billion

The “Hunger Games” studio and premium cable channel announced their merger plans in June, a year after telecom billionaire and major Starz shareholder John Malone bought a stake in Lionsgate. Starz will become an independently run subsidiary of Lionsgate once the deal is officially approved.
Lionsgate/Starz
2. Verizon buys Yahoo

Price tag: $4.8 billion – or maybe less

The embattled Internet 1.0 company finally found its lifeboat, selling its core business to Verizon for $4.8 billion in July, eight years after rejecting a $45 billion bid from Microsoft. But after the extent of Yahoo’s 2014 hack was revealed, Verizon was pushing for a $1 billion discount, and has been taking a second look at the deal.
Verizon/Yahoo
1. AT&T agrees to acquire Time Warner

Price tag: $85.4 billion

AT&T agreed to buy Time Warner, combining two century-old companies to create a content and distribution powerhouse in the biggest media deal since the ill-fated 2000 AOL-Time Warner merger. One caveat: Donald Trump, who has been an outspoken critic of Time Warner’s CNN, had threatened to block the deal. However, a Wall Street-friendly Republican Congress could provide a smoother path.
AT&T/Time Warner

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Rewind 2016: From China’s Dalian Wanda Group to AT&T, deep-pocketed buyers were chasing content all year

Media and entertainment dealmakers returned in full force this year after a quiet 2015, as there were nine mergers and acquisitions valued at more than $1 billion -- from Chinese buyers such as the Dalian Wanda Group to AT&T, which agreed to acquire Time Warner for $85 billion. Here's a rundown of the biggest.

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