Lionsgate Reports Results For Third Quarter Fiscal 2019

Global content leader Lionsgate (NYSE: LGF.A, LGF.B) today reported revenue of $933.2 million and net income attributable to Lionsgate shareholders of $22.9 million, or fully diluted earnings per share of $0.10, on 220.8 million diluted weighted average common shares outstanding for the quarter ended December 31, 2018.

Adjusted net income attributable to Lionsgate shareholders was $78.2 million, or adjusted diluted earnings per share of $0.35, operating income was $86.8 million, and adjusted OIBDA was $171.4 million.

The Company generated $273.7 million in free cash flow during the quarter driven by working capital improvements.

Starz had a strong revenue and subscriber quarter, ending the quarter with 25.1 million overall domestic subscribers, which was consistent sequentially and up 1.1 million subscribers from the prior year quarter.  Starz achieved strong over-the-top (OTT) subscriber growth for the sequential quarter as well as year-over-year.

"We're pleased to report a strong quarter with significant free cash flow and continued revenue and subscriber growth at Starz," said Lionsgate Chief Executive Officer Jon Feltheimer.  "As we refill our feature film and television pipelines at a robust pace and take our integration of Lionsgate and Starz to the next level, all signs are pointing to strong growth in the year ahead."

Segment Results

Media Networks segment revenues increased to $366.8 million due to strong OTT subscriber growth. Segment profits increased 9.6% to $134.1 million from the prior year quarter. Overall domestic subscribers were sequentially consistent in the quarter at 25.1 million and up 1.1 million year over year.

Motion Picture segment revenues were $362.6 million. Segment profits decreased by 19.9% to $43.5 million, reflecting underperformance of certain titles in Fiscal 2019 compared to the outperformance of Wonder in the prior year quarter.

Television Production segment revenues were $216.5 million in the quarter. Segment profits were $21.2 million compared to $27.8 million in the prior year quarter, driven in part by timing of certain episodic deliveries which moved out of Fiscal 2019.

SOURCE: Lionsgate