Wall Street was looking for a reason to be encouraged about Lionsgate after disappointing box office results for Hunger Games: Mockingjay – Part 2 (released in November), Gods Of Egypt, and The Divergent Series: Allegiant.
And the company appears to have found that reason with better-than-expected March quarter results. The just-released numbers sent the stock up more than 13% in post-market trading.
The studio reported net income of $11.5 million, down 41.3% vs the period last year, on revenues of $791.2 million, up 22.5%. The top line was well ahead of the Street’s forecast for $740.7 million. And earnings at 7 cents a share far exceeded forecasts for a 2 cent loss.
“Our television business had a record year with all categories contributing great results, and we expect its strong growth to continue this year,” CEO Jon Feltheimer says. “Although last year’s film slate didn’t match the performance of previous years, this year’s slate is bigger, more balanced and is expected to generate greater profitability. We also expect to continue creating long-term value by deepening our portfolio of brands and franchises and solidifying our status as a preferred partner to owners of intellectual property, 3rd-party distributors and digital platforms worldwide.”
In Lionsgate’s fiscal Q4, motion picture revenues increased 42.2% to $542.4 million with five wide releases vs three in the period last year. But profits apparently fell 95.7% to $3.9 million if you subtract the nine-month results from the ones for the full year.
Meanwhile, television production was up 102.9% to $248.8 million with profits apparently up 860% to $51.9 million.