Lionsgate Reduces Quarterly Losses as TV Revenue Increases

Lionsgate Studios, the renowned Hollywood studio, has recently released its first quarterly financial results following the completion of a spinoff of its studio business into a separately traded stock. The studio reported a fourth-quarter net loss attributable to shareholders of $39.5 million, a significant improvement from the year-earlier loss of $96.8 million. Overall revenue for the quarter rose to $1.117 billion, surpassing the year-earlier figure of $1.08 billion.

The studio’s performance exceeded Wall Street analyst estimates, with overall revenues coming in at $7 million higher than expected. Lionsgate posted an earnings per-share loss of 22 cents, an improvement from the year-earlier loss of 42 cents per share.

Starz, a key component of Lionsgate’s business strategy, saw a slight decline in domestic subscribers across cable, satellite, and streaming platforms. Despite this, the platform continues to drive into the digital space with 12.59 million streaming subscribers at the end of the fourth quarter.

Lionsgate’s vice chairman, Michael Burns, expressed confidence in the studio’s future plans, including a full separation of its studio and Starz businesses by the end of 2024. The studio is also considering combining its twin A and B share classes as part of the planned separation of the studio and Starz divisions.

Overall, Lionsgate is navigating the evolving landscape of the television industry by diversifying its creator base and pursuing new business models. With a focus on creating compelling content and engaging with a variety of platforms, Lionsgate remains a prominent player in the entertainment industry.