Lions Gate Entertainment Corp and Lionsgate Studios Corp. reported first quarter results for the quarter ended June 30, 2024. This press release includes consolidated financial results for parent company Lionsgate as well as operating results for Lionsgate Studios (also referred to as the "Studio Business"), comprised of its Motion Picture and Television Production segments.
Lionsgate reported first quarter revenue of $834.7 million, operating income of $18.8 million, and net loss attributable to Lionsgate shareholders of $59.4 million or $0.25 diluted net loss per share on 235.6 million diluted weighted average common shares. Adjusted net income attributable to Lionsgate shareholders in the quarter was $20.9 million or $0.09 adjusted diluted net earnings per share on 240.4 million diluted weighted average common shares outstanding. Adjusted OIBDA was $104.5 million in the quarter.
Lionsgate and Lionsgate Studios CEO Jon Feltheimer onducted a brief analysis of the balance : "We're pleased to report a solid quarter despite unprecedented industry disruption and the aftereffects of the strikes. Our Motion Picture Group, STARZ and our library performed well, though financial results in our television segment reflected a heavily backloaded year. Importantly, we generated great momentum during and after the quarter by taking a number of steps toward full separation by calendar year-end, subject to the timing of normal regulatory approvals," he commented.
Next, let’s review some of the key points of the report. On one hand, The Studio Business, which includes the Motion Picture and Television Production segments, reported revenue of $588.4 million, reflecting a 5.9% decrease from the prior year quarter. Studio Adjusted OIBDA also saw a decline of 5.5%, amounting to $58.3 million. On the other hand, the Motion Picture segment experienced a revenue decrease of 15%, bringing it to $347.3 million. However, segment profit increased by 24% to $86.1 million. The revenue drop was attributed to the challenging comparison with the previous year's first quarter, which had benefited from carryover theatrical revenue from "John Wick: Chapter Four." Despite this, the Motion Picture performance was bolstered by strong theatrical results from "The Strangers: Chapter One," robust home entertainment results from several theatrical titles, and reduced P&A spend and content amortization.
Additionally, the Television Production segment saw its revenue rise by 10% to $241.1 million. Nonetheless, segment profit fell by 53% to $10.7 million. The revenue growth was driven by contributions from eOne, while segment profit was adversely affected by the lingering impacts of the strike on delivery timings during a heavily backloaded year.
Finally, Media Networks North American revenue increased by 1% to $345.3 million, with segment profit growing by 54% to $58.5 million. Revenue growth was fueled by a price increase in June 2023 and OTT subscriber growth, although this was partially offset by declines in linear revenue. Segment profit growth was largely due to lower content amortization. North American OTT subscribers rose by 5.5% to 13.2 million compared to the prior year quarter, though sequentially, they decreased by 180K. Overall North American subscribers fell by 500K sequentially. Additionally, STARZ recently informed its U.S. customers of a $1.00 increase in the monthly service cost.
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