Lionsgate CFO Says Strike Is Squeezing Management And Production Subsidiary 3 Arts, With Roughly $30M Quarterly Revenue Hit; Expresses Hope For “Mid-Fall” End To Walkouts
deadline.comLionsgate CFO James Barge said the dual Hollywood strikes are hurting revenue by roughly $30 million per quarter, with the brunt of the damage suffered by management and production division 3 Arts. “In our assumptions, we have built in an assumption that the strike goes through the September quarter,” Barge said during the company’s quarterly call with Wall Street analysts. “That was about a $30 million impact.
As you can imagine, it primarily impacts our talent management business, 3 Arts, and television in that context. So, we factored that in.
If it goes longer, it’s a similar impact, probably, as it rolls quarter to quarter. If it does, we’re hopeful that things get resolved and we’re back to work in the mid-fall.” The WGA strike has just marked its 100th day, with SAG-AFTRA’s walkout a month ago only adding to Hollywood’s pain.
No talks are currently scheduled between either guild and the AMPTP. Barge offered the comments after Lionsgate released solid earnings, with results ahead of Street expectations.
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