Lionsgate Posts Strong Third Quarter Results Following Studio Business Spinoff
Lionsgate recently announced its third-quarter financial results following the spinoff of the media giant’s studio business into a separately traded stock. The studio, under the leadership of CEO Jon Feltheimer, reported a significantly reduced net loss attributable to shareholders, amounting to $21.9 million compared to a loss of $107.4 million in the same period the previous year. This improvement can be attributed to the impact of earlier Hollywood writers and actors strikes on content production and release pipelines.
Despite a slight decrease in overall revenue to $970.5 million for the quarter ending on December 31, 2024, compared to $975.1 million in the previous year, the results exceeded analyst estimates of $922 million in third-quarter revenues. Lionsgate, known for successful film franchises such as “John Wick” and “The Hunger Games,” saw success at the box office with the releases of “Best Christmas Pageant Ever,” “Den of Thieves 2,” and “Flight Risk.”
CEO Jon Feltheimer expressed satisfaction with the strong quarterly performance in a challenging market environment. The studio reported a record 22% increase in trailing twelve-month library revenue, totaling $954 million in the quarter. Lionsgate’s film and TV divisions recorded a 3% revenue increase to $713.8 million, with TV production revenue rising by 63% to $404.6 million due to increased episodic deliveries.
The media networks division, primarily comprising Starz, experienced a decline in segment revenue to $341.9 million compared to $417.2 million in the previous year. However, the overall performance of Lionsgate’s businesses was positive, reflecting resilience and adaptability in the face of industry challenges.
In conclusion, Lionsgate’s strong third-quarter results underscore the company’s ability to navigate changing market dynamics and deliver value to shareholders. With a diverse portfolio of successful franchises and a commitment to quality content production, Lionsgate remains a key player in the entertainment industry.