Lionsgate Reduces Quarterly Losses as TV Revenue Increases

Lionsgate, the Hollywood studio known for blockbuster franchises like The Hunger Games and John Wick, has released its first quarterly financial results since completing a spinoff of its studio business into a separately traded stock. The results show a fourth quarter net loss of $39.5 million, an improvement from the year-earlier loss of $96.8 million, with overall revenue rising to $1.117 billion.

Starz, a premium platform owned by Lionsgate, saw a decline in domestic subscribers in the fourth quarter, with 19.35 million subscribers on cable, satellite, and streaming platforms. Despite the decrease, Lionsgate reported a total of 27.54 million global Starz, Lionsgate+, and Starzplay Arabia customers.

Lionsgate vice chairman Michael Burns announced plans for a full separation of the studio and Starz businesses by the end of 2024. This includes combining the studios’ twin A and B share classes and establishing separate boards for the two divisions. Shareholders will have the opportunity to vote on the proposed full separation transaction.

CEO Jon Feltheimer highlighted the challenges facing the TV industry, but expressed confidence in Lionsgate’s ability to weather the storm. The studio is diversifying its creator base and pursuing new business models to adapt to the changing landscape.

Overall, Lionsgate’s financial results reflect a mix of successes and challenges as the studio navigates the evolving entertainment industry. With a focus on innovation and adaptation, Lionsgate is positioning itself for continued growth and success in the future.