August 8, 2024
Lionsgate Aug. 8 reported first-quarter fiscal 2025 revenue of $834.7 million, operating income of $18.8 million, and a net loss attributable to Lionsgate shareholders of $59.4 million.
Adjusted net income attributable to Lionsgate shareholders in the quarter that ended June 30 was $20.9 million. Adjusted OIBDA was $104.5 million.
The revenue total was down 8% from $909 million in the first quarter of fiscal 2024. During that quarter, Lionsgate Studios launched as a separate publicly traded company, with parent company Lionsgate, officially known as Lions Gate Entertainment Corp., continuing to hold an approximately 87% stake in Lionsgate Studios.
“We’re pleased to report a solid quarter despite unprecedented industry disruption and the aftereffects of the strikes,” said Lionsgate and Lionsgate Studios CEO Jon Feltheimer. “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 Studio Business, comprised of the Motion Picture and Television Production segments, reported revenue of $588.4 million, a 5.9% decrease from the prior year quarter. Adjusted OIBDA of $58.3 million was down 5.5%.
Motion Picture segment revenue decreased 15% to $347.3 million while segment profit increased by 24% to $86.1 million. The year-over-year revenue decline, according to Lionsgate, “was due to the difficult comparison with the prior year’s first quarter, which included carryover theatrical revenue from John Wick: Chapter Four.” Motion Picture performance was driven by strong theatrical results from The Strangers: Chapter One, “robust home entertainment performances” from several theatrical titles, and lower P&A spend and content amortization.
Television Production segment revenue increased 10% to $241.1 million while segment profit decreased 53% to $10.7 million. Revenue growth was driven by contributions from eOne, while segment profit growth was impacted by lingering impacts of the strike on the timing of deliveries in a heavily backloaded year, according to Lionsgate.
Media Networks North American revenue grew 1% to $345.3 million and segment profit grew 54% to $58.5 million. Revenue growth was driven by a June 2023 price increase and OTT subscriber growth, partially offset by linear declines. Segment profit growth was driven primarily by lower content amortization. North American OTT subscribers increased 5.5% to 13.2 million compared to the prior year quarter, while on a sequential basis, North American OTT subscribers decreased by 180,000. Overall North American subscribers decreased by 500,000 sequentially. Earlier this week, Starz notified its U.S. customers of a $1 rate increase to the service’s monthly cost.
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