A weaker film slate and softer home entertainment sales took a bite out of Lionsgate’s revenue and earnings during the most recent fiscal quarter.
Revenue for the studio topped out at $408.9 million for the three months ending in June, down 9% from year-earlier revenue of $449.4 million. Diluted earnings of 26 cents a share and profits of $40.7 million were also down from the year-earlier numbers of 30 cents and $43.3 million, respectively.
Earnings did beat analyst estimates of 7 cents, but revenues fell short of projections, failing to hit the $430 million that Wall Street expected. The studio’s stock slid nearly 6% in after-market trading amid widespread losses in the media sector. Investors are concerned that the cable business is losing subscribers, potentially threatening a major source of income for television and film creators.
Lionsgate’s motion picture arm saw revenue hit $275.4 million, compared to $331.9 million in the prior year quarter, as the studio fielded only one new wide release, “Age of Adaline.” It also released Tom Hardy thriller “Child 44,” which flopped after opening in roughly 500 theaters.
Home entertainment revenue fell to $129.5 million from $140.9 million in the prior-year quarter, which the company attributed to fewer films hitting on-demand platforms and store shelves.
Television production segment revenue increased to $133.6 million, up 14% from the $117.5 million in the prior-year quarter. The studio attributed the gains to a licensing deal for “Orange Is the New Black,” Netflix’s critically acclaimed prison drama. Much of the growth was in the international market, with digital platforms comprising the majority of buyers.