Lionsgate has reported earnings above Wall Street forecasts with $20.8 million, or 15 cents a share, for its second fiscal quarter ended Sept. 30.
Revenues for the studio increased 11% to $552.9 million due to “strong” gains in TV production and increases in movie revenue from pay and free TV windows offsetting declines in theatrical and home entertainment.
Analysts had forecasted earnings would come in at 11 cents a share. Lionsgate had reported $505,000, or 0 cents a share, in the same period last year. The company reported the earnings after the market closed Thursday.
“We’re pleased that our entire portfolio of businesses contributed to our solid results in the quarter, driven by a particularly strong performance from our television operations,” said Lionsgate CEO Jon Feltheimer.
“It was a quarter in which we extended our franchises into new lines of business, continued to assemble a strong pipeline of new properties with great commercial potential and developed online platforms that will enhance our ability to deliver our content directly to the consumer.”
The report comes two weeks before Lionsgate opens “The Hunger Games: Mockingjay: Part 1” after seeing the first two Jennifer Lawrence films take in $1.6 billion worldwide.
Lionsgate noted that overall motion picture segment revenue declined 8% to $398 with only two wide releases in the quarter — “The Expendables 3” and “Step Up All In” — compared to the prior year quarter that included two wide releases and continuing revenue from “Now You See Me” and “Instructions Not Included.”
Lionsgate’s home entertainment revenue fell 22% to $164.4 million due partly to a strong year-ago performance by “Now You See Me” and despite strong performance by “Divergent.” Home entertainment revenue from TV increased due to gains in digital media revenue.
TV revenues in the motion picture segment more than doubled to $69.4 million, boosted by pay TV opening for “The Hunger Games: Catching Fire” and the free TV opening for “The Twilight Saga: Breaking Dawn – Part 1.”
Revenue for the TV production segment more than doubled to $154.9 million from $64.3 million with strong gains in both domestic and international. Lionsgate delivered 55 episodes and 38.5 hours of domestic series TV including episodes of “Manhattan,” “Anger Management,” “Orange is the New Black,” “Houdini,” “Nashville” and “Mad Men.”
The company delivered 20 episodes and 11 hours in the prior year quarter. It also saw strong international sales of “Orange is the New Black,” “Nashville” and “Anger Management” in the quarter.