Lionsgate Revenue Drops 8% in June Quarter, Starz Loses 500,000 Subscribers

variety.com:

Todd Spangler NY Digital Editor Lionsgate, still feeling ripple effects from last year’s twin Hollywood strikes, reported a decline in sales and while narrowing its net loss for the June quarter, as its Starz unit shed 500,000 subscribers.

Revenue for the quarter was $834.7 million, down 8%. The company reported a net loss of $59.4 million, translating into a loss of 25 cents per share, an improvement over a net loss of $70.7 million in the year-earlier period.

Wall Street analysts on average predicted revenue of $857.5 million and a loss of 18 cents per share. Lionsgate’s operating income was $18.8 million, compared with an operating loss of $16.8 million a year ago. “We’re pleased to report a solid quarter despite unprecedented industry disruption and the after-effects of the strikes,” Jon Feltheimer, CEO of Lionsgate and Lionsgate Studios, said in announcing the results. “Our Motion Picture Group, Starz and our library performed well, though financial results in our television segment reflected a heavily backloaded year.

Importantly, we generated great momentum during and after the quarter by taking a number of steps toward full separation by calendar year-end, subject to the timing of normal regulatory approvals.” Lionsgate’s Motion Picture segment revenue decreased by 15% to $347.3 million and segment profit increased by 24% to $86.1 million.