Lionsgate Studios experienced a decline in revenue for the quarter ending in September, falling short of Wall Street expectations due to a reduced number of film releases and the scheduling of episodic television deliveries. However, the adjusted profits surpassed projections, and earnings per share aligned with forecasts. CEO Jon Feltheimer expressed optimism, stating that the studio has prepared a robust film slate poised for significant growth over the next 18 months, alongside key renewals and new series for its television lineup.
The Motion Picture segment reported revenue of $276.4 million, a significant drop from $409 million, attributed to only two wide releases in comparison to five during the same period last year. However, the segment saw profits rise dramatically to $30.5 million, recovering from a dismal performance in the previous year attributed to the poorly received film, Borderlands.
In the Television Production division, revenues slid to $198.7 million from $416 million, which the company indicated was due to the timing of episodic deliveries, with several projects shifted into the latter half of the fiscal year. Consequently, television profits also declined to $12.5 million, down from $24.4 million.
Overall, Lionsgate’s consolidated revenue decreased to $475 million from $604 million for the fiscal second quarter. Despite the decline, the company highlighted a remarkable $1 billion in trailing 12-month library revenue, marking a record achievement that showcases the strength of its intellectual property portfolio. Feltheimer is optimistic, indicating that signs point to substantial growth over the next two quarters and into fiscal 2027.
In late trading, shares dipped by 3% after the earnings report, following a buildup in stock value. Recently, billionaire investor Steven Cohen, through Point72 Asset Management, significantly increased his stake in the company by acquiring over 10 million shares valued at more than $64 million.
This week marked the release of the first trailer for “Michael,” a long-awaited biopic about the legendary pop icon Michael Jackson, set to release in theaters in April. Directed by Antoine Fuqua and featuring Jaafar Jackson, the film aims to delve into Jackson’s life off-stage and include some of his most iconic performances. Notably, the film may also touch on various controversies surrounding the superstar, although specifics remain unclear.
In addition to “Michael,” Lionsgate has confirmed the completion of production on “The Hunger Games” series and two “Resurrection” films, with “Now You See Me” set to premiere next Friday. The studio also recently finalized a deal with Millennium Films to secure all future film and television rights for “The Expendables” franchise, alongside global distribution rights for the upcoming Rambo film starring Noah Centineo, enhancing its portfolio further in the highly competitive entertainment landscape.