Lionsgate Reports $50 Million Quarterly Loss Despite Streaming Subscriber Boost

thewrap.com:

Revenue for the quarter ending on March 31 came in at $930 million, below Wall Street projections of $961 million. Despite continued operating losses, CEO Jon Feltheimer touted his studio’s ongoing efforts to build its film and TV content base over the past year, as well as subscriber growth for its Starz streaming service to 35.8 million worldwide, with 12.8 million coming from StarzPlay Arabia.

This past quarter, Lionsgate added 4.4 million subscribers, beating analyst projections of 3 million. “Despite a very competitive and disruptive environment, I’m pleased to report a strong fourth quarter toclose one of our best content building years as we continue to create significant long term value,” saidFeltheimer. “Our content creation strengths were evident across our businesses as our Television Group achieved record new series launches and current series renewals, our Motion Picture Group continued to add to a strong pipeline of branded properties and our library turned in another standout performance,” he continued. “At Starz, our increased investment in content generated a robust slate that drove strong subscriber growth and a notable reduction in churn.”Lionsgate’s stock has fallen 23% over the past month and has dropped today from its market close price of $10.57 in after-hours trading.