Lionsgate Fourth-Quarter Earnings and Revenue Fall

1:15 PM PST 05/29/2014 by Etan Vlessing

The mini-studio on Thursday posted lower profits as it reported revenue from "The Hunger Games: Catching Fire."

TORONTO -- Lionsgate on Thursday reported lower fourth-quarter earnings and revenue.

The mini-studio, led by CEO Jon Feltheimer, posted earnings at $49.1 million for the three months to March 31, 2014, compared to a profit of $163 million in the year-ago period.

The net income line in the fourth quarter of 2013 included an income tax benefit of $86.7 million from changes in the valuation allowance.

Lionsgate also missed the consensus estimate for revenue during the latest quarter, which came to $721.8 million, against $785.7 million in the fourth quarter of fiscal 2013.

The mini-studio posted full-year 2014 revenue of $2.63 billion, just off from $2.71 billion in the prior year, due to a domestic theatrical slate of 13 wide releases, compared to 19 releases in fiscal 2013.

That was partially offset by a rising revenue from Lionsgate's TV production division to a record $447.4 million for full-year 2014 and international operations also posting record full-year revenue at $397.1 million.

Lionsgate's filmed entertainment library also reached an all-time revenue best of $496 million.

Elsewhere, overall motion picture segment revenue for fiscal 2014 was down to $2.18 billion, against a year-earlier $2.32 billion for the same period.

Fewer releases led theatrical revenue in the motion picture segment to fall 2 percent to $524.7 million for full-year 2014.

And Lionsgate's home entertainment revenue from both motion pictures and TV was $863.9 million for fiscal 2014, against $964.1 million for the year-earlier period.

And international motion picture segment revenue, excluding Lionsgate U.K., rose 7 percent to a record $397.1 million during the latest financial year.

Lionsgate U.K. posted revenue of $146.3 million for the fiscal year, compared to $147.7 million in the prior year.

"Our strong operating momentum, the diversity of our portfolio of businesses and the continued enhancement of our capital structure all contributed to another year of outstanding financial results," Lionsgate's Feltheimer said in a statement Thursday.

"The trajectory of our business, the depth of our content pipelines and the ongoing generation of predictable income from our film franchises, television properties and filmed entertainment library continue to give us excellent long-term visibility," he added, ahead of a financial analyst call to discuss the latest corporate results on Friday morning.

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