Lionsgate Chief Says Company Boasts Better Library Than MGM While Talking Up Acquisition Potential
variety.comBrent Lang Executive Editor of Film and MediaSubscriber growth at Starz lifted shares of Lionsgate in after-hours trading, giving investors optimism that the media company will be able to demand top dollar when it finalizes plans to sell off its cable and streaming arm.
Streaming subscribers jumped to 26.3 million worldwide, a 57% year-over-year increase.On an earnings call, Lionsgate CEO Jon Feltheimer said that potential buyers are also interested in the company’s film studio, suggesting that Amazon’s $8.5 billion purchase of Metro-Goldwyn-Mayer had made Lionsgate a more attractive target.“Our library is newer, fresher than the MGM library,” Feltheimer said.His remarks came as Lionsgate saw a dip in revenue for the most recent fiscal quarter, dropping from $901.2 million to $893.9 million.
Losses also widened at the company, increasing from $45.4 million to $119 million. Motion picture segment revenue decreased 4% to $278.8 million.
However, profits increased 14% to $50.5 million because fewer wide release theatrical films in the quarter meant that Lionsgate didn’t spend as much on marketing.
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