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Lionsgate Q3 revenue stands at $751 mn
MUMBAI: US media company Lionsgate has reported revenue of $751.3 million, adjusted EBITDA of $146.8 million, a record adjusted net income of $110.0 million or $0.79 adjusted basic net income per share and net income of $98.2 million for the third quarter of fiscal 2015 ended 31 December 2014.
The worldwide theatrical release of ‘The Hunger Games: Mockingjay-Part 1’, robust domestic television series licensing, lower marketing costs, a reduction in the effective tax rate and increased earnings from our equity investments drove profitability and margins in the quarter.
Lionsgate CEO Jon Feltheimer said, “Our strong financial results in the quarter were driven by growing margins across our businesses. Our television division had another stellar quarter as it continues to emerge as a leading supplier of premium scripted content, and our film business achieved strong profitability with a diverse portfolio of films. We’re also pleased to see our digital initiatives beginning to deliver incremental revenue and profits, and we expect their contributions to continue to grow.”
Record adjusted net income of $110.0 million increased by six per cent from adjusted net income of $103.9 million. Adjusted net income for the quarter benefitted from a lower effective tax rate compared to the prior year quarter and higher equity interest income, primarily reflecting higher net income at the company’s EPIX pay television venture with Viacom and MGM.
Net income of $98.2 million increased by 11 per cent from $88.8 million weighted average number of common shares outstanding in the prior year quarter.
Revenue of $751.3 million for the quarter declined 11% from $839.9 million in the prior year quarter as declines in motion picture revenue offset gains in television production revenue. Lionsgate had two wide release theatrical films in the quarter compared to four wide release theatrical films in the prior year quarter, and the theatrical slate’s underlying the company’s home entertainment and international operations were also smaller than in the prior year quarter.
Overall, motion picture segment revenue for the quarter was $590.1 million, a decline of 22 per cent compared to the prior year quarter. Within the motion picture segment, theatrical revenue for the quarter was $186.4 million with only two wide theatrical releases, ‘Mockingjay—Part 1’ and ‘John Wick’, compared to a prior year quarter that included four wide theatrical releases, ‘The Hunger Games: Catching Fire’, ‘A Madea Christmas’, ‘Ender’s Game’ and ‘Escape Plan’.
Lionsgate’s home entertainment revenue for the quarter was $183.1 million compared to $200.7 million in the prior year quarter, due primarily to the smaller slate of theatrical films. ‘Mockingjay—Part 1’ begins its home entertainment rollout on electronic sell-through on 17 February and debuts on packaged media and on demand platforms on 6 March.
Television revenue included in the motion picture segment for the quarter was $82.9 million compared to $105.8 million in the prior year quarter with only one new wide release theatrical title, ‘Divergent’, reaching its pay television window compared to five wide release theatrical titles in the prior year quarter. The next film in the ‘Divergent’ franchise, ‘Insurgent’, debuts in theatres worldwide on 20 March 2015 in IMAX and 3D.
International motion picture segment revenue (excluding Lionsgate U.K.) for the quarter was $79.4 million compared to $117.1 million in the prior year quarter due to fewer wide release titles in the quarter.
Lionsgate U.K. had another strong quarter as revenue increased by 12 per cent to $62.7 million driven by a theatrical slate that included ‘Mockingjay—Part 1’, ‘The Expendables 3’ and the third-party films ‘The Railway Man’ and ‘Postman Pat: The Movie’.
Revenue for the television production segment rose to $161.2 million in the quarter, nearly doubling the $82.3 million in the prior year quarter, with a strong performance in domestic television licensing as well as gains in international television revenue and home entertainment revenue from television production.
A record 74 episodes and 58.5 hours of domestic television series were delivered to a broad spectrum of buyers in the quarter, including episodes of ‘Anger Management’, ‘Orange is the New Black’, ‘Nashville’, ‘Ascension’, ‘Mad Men’ and ‘Manhattan’. The quarter also benefitted from significant domestic television revenue from the game and talk shows ‘Celebrity Name Game’, ‘Family Feud’ and ‘The Wendy Williams Show’. International television revenue included licensing of ‘Anger Management’, ‘Orange is the New Black’, ‘Nashville’ and ‘Mad Men’.