×

Lionsgate Posts Loss, Underperforms Wall Street Expectations

Lionsgate has posted a quarterly loss and its revenues and operating income have come in under Wall Street projections, despite growth from its premium cable channel, Starz.

The studio reported a net loss of $24 million, or 11 cents a share, with adjusted operating income of $103 million for its fourth fiscal quarter ended March 31. The earnings per share of 11 cents came in well short of the consensus outlook for 19 cents.

Revenues totaled $914 million, or $22 million under the consensus estimate. Starz reported 24.7 million overall domestic subscribers in the quarter, up 1.2 million from the year-ago quarter, driven by strong over-the-top to more than 4 million subscribers. Starz CEO Chris Albrecht left the company in February.

Starz has been the subject of recent speculation with CBS rumored to have made a $5 billion offer that was spurned. Starz was acquired by Lionsgate in 2016 for $4.4 billion.

During the conference call with Wall Street analysts following the earnings report, Lionsgate CEO Jon Feltheimer said the company does not comment on mergers and acquisitions rumors. Instead, he touted the growth plans for Starzplay streaming service outside the United States with plans for operations in 51 countries by July, achieving profitability by fiscal 2023 with as many as 25 million subscribers. He added that Starzplay Arabia has been particularly successful.

“Our responsibility is to our shareholders, so we always have to listen to opportunities to create in any way shareholder value,” he said. “But we’re outlining a plan today and that’s all we’re going to execute on.”

The results did not include the unexpectedly strong box office performance by “John Wick: Chapter 3 — Parabellum,” which opened on May 17 and represents the studio’s first hit since 2017’s “Wonder.” Lionsgate has already green-lit “John Wick 4” for release in 2021.

“We’ve completed a very active and productive fiscal 2019 in which we set in place all the elements for strong growth and continued value creation in the year ahead,” said Feltheimer.  “We’ve refilled our film and television content pipelines, refocused on extracting maximum value from our franchise properties and are capitalizing on an extraordinary opportunity to continue Starz’s global expansion and cement its stature as one of the leading international pure play subscription video-on-demand services.”

Lionsgate’s media networks segment revenues, which includes Starz, increased by 4% to $1.46 billion in the fiscal year due to strong OTT subscriber growth. Segment profits increased by 2% to $436 million.

Motion Picture segment revenues decreased by 20% to $1.46 billion in the year due to a smaller film slate over the prior year. Segment profits decreased by 28% to $129 million. The studio’s top domestic performer during the fiscal year was the final “Madea” movie, “Tyler Perry’s A Madea Family Funeral.”

Television production segment revenues decreased by 11% to $921 million in the year due to timing of certain titles. Segment profits decreased by 41% to $66 million.

Lionsgate made the earnings announcement on Thursday at the close of trading on the New York Stock Exchange. Shares of Lionsgate declined slightly in after-hours trading by 4 cents to $15.99. The stock has declined by 50% in the last 16 months.

Popular on Variety

More Film

  • Send Me to the Clouds

    Film Review: ‘Send Me to the Clouds’

    The social and economic pressures felt by China’s “leftover women” — referring to those older than 26 and unmarried — are examined in “Send Me to the Clouds,” a rewarding dramedy about a 30-ish journalist seeking financial reward and sexual fulfillment after being diagnosed with ovarian cancer. Bold by mainland standards for presenting a positive [...]

  • Jamie Bell Without Remorse

    Jamie Bell Joins Michael B. Jordan in 'Without Remorse' Adaptation (EXCLUSIVE)

    Jamie Bell is in final negotiations to join Michael B. Jordan in Paramount’s adaptation of the Tom Clancy novel “Without Remorse.” Stefano Sollima, who most recently helmed “Sicario: Day of the Soldado,” is directing from a script by “Sicaro” screenwriter Taylor Sheridan. As previously announced, Jordan is starring as operations officer John Clark, also known [...]

  • Elizabeth McGovern, Laura Carmichael, Jim Carter,

    'Downton Abbey' Movie Sequel? Producers Tease That They Have 'Some Ideas'

    “Downton Abbey” holds the record as the most-nominated international show at the Emmy Awards with 69 nominations and 15 wins — and now, it stands a chance to nab an Oscar. More than three years after the beloved series signed off the air following six critically-acclaimed seasons, “Downton Abbey” is making its big-screen debut. “It [...]

  • Todd Phillips Joaquin Phoenix Joker Movie

    What's Woker Than 'Joker'? Film Critics Made Everything Political at Fall Festivals

    “Is it just me, or is it getting crazier out there?” asks Joaquin Phoenix, playing a deranged incel version of the DC supervillain in “Joker,” the unconventional comic book movie that’s sucked up much of the air from the fall festival circuit. Like an aggro caricature of the “involuntary celibates” who troll message boards online, [...]

  • Running Against the Wind

    Young Africans' Dreams Are Focus of Kenya, Ethiopia, Uganda Oscar Picks

    Films about young Africans trying to fulfill their dreams in the face of war, poverty, tradition and other forms of adversity have been submitted for Oscar consideration by three East African nations. The selections by Kenya, Ethiopia and Uganda to compete in the international feature film category reflect the relative youth of filmmaking in the [...]

  • Bob Bakish Viacom CEO

    ViacomCBS Leaders Talk NFL Negotiations, Streaming Wars and Merger Focus

    Viacom and CBS aim to prosper in the streaming arena by covering both ends of the marketplace, blending Viacom’s focus on ad-supported platforms with CBS’ strong head start on subscribers for CBS All Access and Showtime. ViacomCBS CEO Bob Bakish and incoming ViacomCBS chief financial officer Christina Spade outlined the combined company’s vision for how [...]

  • Steven Poster ICG National President

    DP Steven Poster to Receive SOC Lifetime Achievement Award

    Stephen Poster, cinematographer on such classics as “Donnie Darko” and Madonna’s “Like a Prayer,” will receive the Lifetime Achievement Distinguished Service Award from the Society of Camera Operators at a ceremony on Jan. 18, 2020. SOC grants the award to an Individual who has served the community at large and/or the Society through outstanding service [...]

More From Our Brands

Access exclusive content