Lionsgate Posts Lower Fourth-Quarter Earnings and Revenues
The studio, led by CEO Jon Feltheimer, missed estimates as it reported revenue from the YA sequel 'Insurgent,' and record TV production growth.
Lionsgate on Thursday reported lower fourth-quarter earnings and revenue.
The studio, led by CEO Jon Feltheimer, posted earnings at $19.5 million for the three months ending on March 31, 2015, or 14 cents per share, compared to a profit of $49.1 million for the year-ago period.
Lionsgate missed the consensus estimate for earnings during the latest quarter at 34 cents per share. Quarterly revenue for Lionsgate was $646 million, down from the year-ago quarter's $721.8 million.
Full-year earnings rose to $181.7 million, against a year-earlier $152 million, even as overall revenues for fiscal 2015 fell 9 percent to $2.39 billion, compared to $2.63 billion in 2014. The studio during the latest frame recorded one-time items that included a charge for the early extinguishing of debt, non-risk P&A that is fully back-stopped and restructuring charges for relocating international sales executives to London.
Lionsgate also pointed to a smaller theatrical release slate during the latest full-year, with 10 wide releases, including The Hunger Games: Mockingjay Part 1, Insurgent and John Wick. That compares to 13 wide releases in fiscal 2014, including Ender's Game, Escape Plan, A Madea Christmas and The Hunger Games: Catching Fire.
Lionsgate, which recently unveiled a film financing pact with China's Hunan TV, said it expects to release 14 wide theatrical releases in fiscal 2016. During the latest 12-month period, the studio posted overall motion picture segment revenues at $1.82 billion, down 17 percent from 2014 levels.
In the motion picture segment, Lionsgate had theatrical revenue of $354 million in full-year 2015, compared to $524.7 in the prior year, owing to the smaller theatrical slate. The studio's full-year home entertainment revenue also fell to $707.5 million, against a year-earlier $864 million, as fewer wide theatrical releases offset home entertainment gains from TV production.
On the small screen, Lionsgate posted record TV production revenue at $579.5 million in full-year 2015, up 30 percent from a year-earlier $447.4 million. The studio delivered 238 episodes and 168 hours of series fare, including Anger Management, Orange is the New Black, The Royals and Nurse Jackie.
"We're pleased to report very strong financial results in fiscal 2015, bolstered by a stellar performance from our television business, complemented by a great year on the strategic front as well," said Feltheimer in a statement. Top studio executives, including Feltheimer, will hold an analyst call to discuss their latest financial results on Friday morning.
May 21, 2015 4:45 p.m. Updated with additional details on Lionsgate's full-year 2015 results.