- Motion picture division leads the way with a 53% revenue increase
- The Hunger Games: The Ballad of Songbirds & Snakes contributes significantly to film division’s success
- Television production revenue takes a hit due to dual strikes
- Media Networks division, including Starz, sees growth in North American streaming subscribers
- Starz profits rise as it exits Latin American market
Lionsgate, the entertainment company known for producing successful films and television shows, has announced better-than-expected earnings in its fiscal third quarter. Despite facing challenges in its television business due to dual strikes, Lionsgate’s motion picture division has driven the company’s strong performance. The success of recent film releases, including The Hunger Games: The Ballad of Songbirds & Snakes, has contributed significantly to the company’s revenue growth. However, the television production division experienced a significant decline in revenue, attributing it to the impact of the strikes. On the other hand, Lionsgate’s Media Networks division, which includes Starz, has seen positive growth in streaming subscribers, while Starz itself has chosen to exit the Latin American market.
Motion Picture Division Drives Revenue Growth
Lionsgate’s motion picture division has been the standout performer in the company’s fiscal third quarter. With revenue increasing by 53% over the previous year to reach $443.2 million, and profit up 31% to $100.4 million, the division has exceeded expectations. The release of The Hunger Games: The Ballad of Songbirds & Snakes has been a major contributor to this success, generating nearly $340 million at the box office since its November release. Additionally, the presence of other popular franchises like Saw and John Wick has also bolstered box office earnings.
Television Production Revenue Takes a Hit
While Lionsgate’s motion picture division has thrived, its television production business has struggled in the fiscal third quarter. Revenue fell by more than half compared to the same period the previous year, settling at $248.4 million, with profit dropping to $8.1 million from $71.5 million. The company attributes this decline to the dual strikes that not only disrupted episodic deliveries but also affected the 3 Arts talent management business. Lionsgate’s recent majority stake acquisition in 3 Arts further emphasizes the impact of the strikes on the company’s television production division.
Media Networks Division Sees Streaming Subscriber Growth
Lionsgate’s Media Networks division, which encompasses Starz, has experienced positive growth in streaming subscribers. The division added 700,000 North American streaming subscribers over the previous quarter, contributing to a 10% year-over-year increase in segment revenue, reaching $417.2 million. This growth highlights the popularity of Starz’s streaming offerings in the North American market.
Starz Exits Latin American Market, Sees Profit Rise
In a strategic move, Starz has decided to exit the Latin American market. This decision took effect in the fiscal third quarter and has contributed to a 73% rise in profits for Starz, reaching $85.5 million. While Starz initially had plans for global expansion, the company has chosen to focus on its core North American market instead.
Despite setbacks in its television business due to dual strikes, Lionsgate has posted better-than-expected earnings in its fiscal third quarter. The motion picture division’s success, driven by the release of The Hunger Games: The Ballad of Songbirds & Snakes and other popular franchises, has propelled the company’s overall performance. While the television production division faced challenges, Lionsgate’s Media Networks division, including Starz, has seen growth in streaming subscribers. Starz’s decision to exit the Latin American market has further contributed to its increased profitability. As Lionsgate prepares to split into two separate publicly traded entities, the company remains optimistic about its future prospects. Share your thoughts on Lionsgate’s performance and its strategic moves in the comments below.