- Share this article on Facebook
- Share this article on Twitter
- Share this article on Email
- Show additional share options
- Share this article on Print
- Share this article on Comment
- Share this article on Whatsapp
- Share this article on Linkedin
- Share this article on Reddit
- Share this article on Pinit
- Share this article on Tumblr
Lionsgate on Thursday posted a smaller third-quarter loss on lower overall revenue as the Hollywood studio continues to drive into the streaming space with Starz.
The studio saw its global streaming subscriber base for Starz, Starzplay Arabia and Pantaya grow to 14.6 million, up another 900,000 subscribers compared to the end of its second quarter. “With 28 million global subscribers at quarter’s end, we are well on our way to our goal of 50 to 60 million global subscribers by 2025, the vast majority of which will be high-value streaming subs,” Lionsgate CEO Jon Feltheimer told analysts about Starz during a conference call on Thursday.
Feltheimer added that the studio expected streaming revenue from Starz to surpass traditional linear TV subscriber revenue for the first time at the end of the current fourth quarter. Internationally, Lionsgate has got Starz into 55 countries, including via its StarzPlay Arabia joint venture, with launches spanning 10 partners and 20 countries during the third quarter alone.
To fuel that growth, Lionsgate continues to combine its studio and Starz platform businesses by in part by “lining up 20 LGTV premium series for Starz, using our library to help drive Starz’s international growth or leveraging our properties and talent relationships across all of our businesses,” Feltheimer told analysts.
Lionsgate reported adjusted earnings of 21 cents per share, which surpassed a Wall Street estimate for 16 cents in per-share earnings during the latest quarter. The studio posted a quarterly net loss attributable to shareholders at $13.9 million, which compared to a year-earlier loss of $91.2 million.
Third-quarter revenues came to $836.4 million, down from a year-earlier with $998.5 million. But that represented a $59.9 million beat as analysts had projected quarterly revenues of $776.5 million for the latest financial quarter.
The studio’s media networks revenue, which accounts mostly for Starz, rose to $406.2 million, from a year-earlier $382.4 million, on the strength of domestic and international streaming revenue and subscriber growth.
And motion picture revenues were $250.3 million, down sharply from $473.9 million a year ago as the studio felt the impact of fewer theatrical releases in the quarter amid movie theater closings during the COVID-19 pandemic. “Our success in generating strong returns from early PVOD, multiplatform, and hybrid models for the films Fatale, Antebellum, Run, I Can Only Imagine and The Secret speaks to our ability to monetize current films while at the same time working with our theatrical exhibition partners to plan for the future,” Feltheimer insisted on the call.
Television production rose to $228.2 million, from $189.4 million last year, on strong library sales and especially the licensing of Mad Men. Lionsgate reported the studio’s film and TV library secured record revenue of $765 million, with its second best revenue quarter ever.
Lionsgate also announced on Thursday that Starz has gone straight to series on The Serpent Queen, a drama based on the book Catherine de Medici: Renaissance Queen of France by Leonie Frieda, to be produced by Lionsgate Television and 3 Arts Entertainment.
Sign up for THR news straight to your inbox every day