Topping Wall Street forecasts, Lionsgate has reported higher earnings of $16 million, or 7 cents a share, for its second quarter that ended on Sept. 30, compared with an $18 million loss in the year-ago quarter.
The studio easily beat analyst forecasts of Lionsgate losing 13 cents a share during the latest quarter.
The studio issued the report on Thursday after the stock market closed. Shares were up 21 cents to $29.30 in afterhours trading.
“Our strong performance in the quarter keeps us on track for our fiscal year expectations, and our robust free cash flow is enabling us to continue our consistent deleveraging ahead of schedule,” Lionsgate CEO Jon Feltheimer said. “Starz continued to report strong overall subscriber gains, with its direct to consumer offering leading the way. Our ability to leverage our strengths, mitigate risk, and focus on segments where we can continue to win puts us on a strong, profitable growth path.”
Motion Pictures segment revenues declined 24% to $385.7 million primarily driven by fewer wide releases in the quarter. Lionsgate said “The Big Sick” and “The Hitman’s Bodyguard,” which grossed $75 million domestically, performed strongly at the domestic box office. Segment profits improved to $8.9 million from a loss of $5.9 million last year as P&A costs declined.
Television production segment revenues declined 4.7% to $168.7 million due to the timing of episodic deliveries of “Orange is the New Black.” Segment profits declined 30.1% to $8.6 million.