Lionsgate Takes Big Write-Down For Starz Noting “Economic, Industry Headwinds” But Beats Quarterly Forecasts
deadline.comLionsgate total global subscribers rose to 37.8 million for the fiscal second quarter ended in September, driven by international and domestic streaming, where subs were up 52% year-on-year to 27.3 million.
Rebranded Lionsgate+ subscribers grew 97% to 14.8 million. The company reported a few one-time charges, including a $1.48 billion non-cash hit related to goodwill from the Starz acquisition that reflects changes to future free cash flow projections and underlying valuations.
It also posted $219 million in restructuring charges from exiting seven Lionsgate+ (formerly called Starzplay International) territories — France, Germany, Italy, Spain, Benelux, the Nordics and Japan as it to streamlines that business.
These were content impairment write-downs in the territories. The release didn’t discussion upcoming strategic plans for either the studio or Starz but execs are likely to on a call skedded for 6 pm ET.
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