In what is expected to be the last financial quarter that Lionsgate will report stand-alone results before ingesting Starz, the mini-major today reported revenue of $639.5 million during its fiscal second quarter. That’s up 34% year-over-year and well above the Street’s expectation of $553.6M. Still, Lionsgate said its loss attributable to shareholders was $16.9M, or an adjusted earnings per share of 11 cents. Analysts had expected a 24 cent loss.
“We’re making great progress in planning the integration of Starz and Lionsgate, and next quarter we expect to report combined numbers that will begin to reflect the scope of our vertically integrated global content platform, supported by strong free cash flow generation and a more diversified income stream,” Lionsgate CEO Jon Feltheimer said in the earnings report. Lionsgate will hold a call with analysts later this afternoon.
Feltheimer last month re-upped his contract through May 2023 with a new deal that replaces the one due to expire in 2018. Under terms, he keeps his annual base salary at $1.5 million, with a bonus targeted to match that, according to an SEC filing. Among his incentives: Feltheimer can receive a $5 million bonus if Lionsgate meets undisclosed performance goals following the close of its $4.4 billion deal to buy Starz, which will double the company’s scale. The merger is expected to be approved by year’s end.
Lionsgate shares have lost nearly 52% of their value over the past 12 months. Shares closed down fractionally today before earnings were reported.
Lionsgate said today that in its fiscal Q2 its Motion Picture Group revenues grew 31% thanks in part to favorable comparisons — it had seven wide theatrical releases in the quarter compared to three in the yaer-ago Q2. Overall, revenue in the segment was $464.4 million, up from $354.0 million.
Home entertainment revenue from Motion Picture and TV Production increased 5% to $160.7 million helped in part by Now You See Me 2, a title that also helped push International Motion Picture revenue up 56% to $168.3 million. Nerve, Deepwater Horizon and Lionsgate UK’s London Has Fallen also contributed.
Its current No. 1 box office hit Tyler Perry’s Boo! A Madea Halloween was released after the end of the reportable quarter.
Also up: Television Production revenues, by 43% due mostly to $43 million in domestic TV revenue from the Pilgrim Media Group, acquired in November 2015.