Lions Gate Entertainment Corp. (LGF-A) Reports In-Line Q3 EPS

LIONSGATE REPORTS RESULTS FOR THIRD QUARTER FISCAL 2022

February 3, 2022 4:05 PM EST

SANTA MONICA, Calif. and VANCOUVER, B.C., Feb. 3, 2022 /PRNewswire/ -- Lionsgate (NYSE: LGF.A, LGF.B) today reported third quarter (quarter ended December 31, 2021) revenue of $885.4 million, operating income of $9.3 million and net loss attributable to Lionsgate shareholders of $45.6 million or 0.20 diluted net loss per share on 225.0 million diluted weighted average common shares outstanding. Adjusted net income attributable to Lionsgate shareholders in the quarter was $4.8 million or adjusted diluted EPS of $0.02 on 229.5 million diluted weighted average common shares outstanding, with adjusted OIBDA of $91.6 million. 

"Our Television Group achieved a banner performance in the quarter in new series pickups and current series renewals, our library continued to generate strong high-margin revenue and our Motion Picture Group assembled a great pipeline of branded intellectual properties," said Lionsgate CEO Jon Feltheimer.  "Though COVID-related production delays resulted in diminished subscriber growth relative to our expectations in the first half of the year, putting pressure on revenues and segment profit in the current quarter, Starz's programming is back on track and expected to translate into continued subscriber growth going forward."

Revenue from Lionsgate's 17,000-title film and television library was $771 million for the trailing 12 months. 

Third Quarter Results

Segment Results

Media Networks segment revenue of $388.9 million was down 4.3% compared to the prior year quarter. Excluding the revenue from our former Pantaya streaming service in the prior year quarter, Media Networks segment revenue was down 1.0% due to reductions in domestic linear revenue partially offset by growth in domestic streaming revenue and STARZPLAY International revenue. Segment profit decreased to $28.5 million driven by higher programming and marketing expense. Total Media Networks global subscribers increased to 31.4 million including STARZPLAY Arabia, a non-consolidated equity method investee, driven by robust international and domestic streaming subscriber growth. Global streaming subscribers increased 44% year-over-year to 19.7 million. STARZPLAY International subscribers grew 98% year-over-year to 8.5 million. 

Motion Picture segment revenue was up 10.0% to $275.3 million while segment profit increased 35.0% to $67.5 million compared to $50.0 million in the prior year quarter.  Revenue and segment profit growth was driven by the continued strength of our library as well as strong results from our alternative multiplatform releases.

Television Production segment revenue of $438.6 million was up 92.2% compared to the prior year quarter reflecting continued strength in delivery of episodes to Starz and other platforms.  Segment profit declined 34.6% to $19.3 million reflecting typically lower initial margins on newer shows and the comparison with the prior year's licensing revenue from Mad Men. 

Lionsgate senior management will hold its analyst and investor conference call to discuss its fiscal 2022 third quarter results at 5:00 PM ET/2:00 PM PT this afternoon, February 3. Interested parties may listen to the live webcast by visiting the events page on the Lionsgate Investor Relations website or via https://services.choruscall.com/links/lgf2202037DKHuL2X.html. A full replay will become available this evening by clicking the same link. 

About Lionsgate

Lionsgate (NYSE: LGF.A, LGF.B) encompasses world-class motion picture and television studio operations aligned with the STARZ premium global subscription platform to bring a unique and varied portfolio of entertainment to consumers around the world.  The Company's film, television, subscription and location-based entertainment businesses are backed by a 17,000-title library and a valuable collection of iconic film and television franchises. A digital age company driven by its entrepreneurial culture and commitment to innovation, the Lionsgate brand is synonymous with bold, original, relatable entertainment for audiences worldwide.

For further information, investors should contact:Nilay Shah310-255-3651[email protected]

For media inquiries, please contact:Peter Wilkes310-255-3726[email protected]

The matters discussed in this press release include forward-looking statements, including those regarding the performance of future fiscal years.  Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including: the potential effects of the COVID-19 global pandemic on the Company, economic and business conditions; the substantial investment of capital and increased costs required to produce and market films and television series; budget overruns; limitations imposed by our credit facilities and notes; unpredictability of the commercial success of our motion pictures and television programming; risks related to acquisition and integration of acquired businesses; the effects of dispositions of businesses or assets, including individual films or libraries; the cost of defending our intellectual property; technological changes and other trends affecting the entertainment industry; other trends affecting the entertainment industry; and the other risk factors as set forth in Lionsgate's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 3, 2022.  The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances.

Additional Information Available on Website

The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2021, which will be posted on the Company's website at http://investors.lionsgate.com/financial-reports/sec-filings, when filed with the Securities and Exchange Commission.  Trending schedules containing certain financial information will also be available at http://investors.lionsgate.com/financial-reports/quarterly-results/2022.

 

LIONS GATE ENTERTAINMENT CORP.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

December 31,2021

March 31,2021

(Unaudited, amounts in millions)

ASSETS

Cash and cash equivalents

$ 314.4

$ 528.7

Accounts receivable, net

415.2

383.7

Other current assets

189.3

... More