Lionsgate (NYSE: LGF.A, LGF.B) reported first quarter (quarter ended June 30, 2023) revenue of $908.6 million, operating loss of $16.8 million and net loss attributable to Lionsgate shareholders of $70.7 million or $0.31 diluted net loss per share on 230.2 million diluted weighted average common shares outstanding. Adjusted net loss attributable to Lionsgate shareholders in the quarter was $9.8 million or $0.04 adjusted diluted net earnings per share on 230.2 million diluted weighted average common shares outstanding, with Adjusted OIBDA of $85.7 million.
“I’m pleased to report a strong financial quarter with another record library performance,” said Lionsgate CEO Jon Feltheimer. “We continued to execute our strategic agenda culminating in our signing a definitive agreement with Hasbro last week to acquire global entertainment platform eOne. The acquisition checks off all the boxes by adding thousands of titles to our library, growing our portfolio of brands and strengthening our scripted and unscripted television business.”
Revenue from Lionsgate’s film and television library increased to a record $896 million for the trailing 12 months. Lionsgate ended the quarter with $323 million in available cash and an undrawn revolving credit facility of $1.25 billion. During the quarter, the Company purchased $85 million of its bonds for $61 million, driving a $24 million reduction in its net debt and future cash interest savings.
Studio backlog from the Motion Picture and Television Production segments was $1.5 billion at June 30, 2023.
Subsequent to the end of the quarter, STARZ made a strategic decision to exit Latin America by December 31st and focus its operations on the U.S., U.K. and Canada.
First Quarter Results
Media Networks segment revenue was $381.1 million compared to $381.2 million in the prior year quarter. Segment revenue was driven by growth in domestic streaming revenue and international revenue, offset by lower domestic linear revenue. Segment profit grew to $31.9 million compared to segment losses of $37.0 million in the prior year quarter, driven by growth in international revenue, lower content and operating expenses due to international market closures, and lower operating expenses domestically. Total STARZ global OTT subscribers increased by 100K sequentially on a pro forma basis.
The Studio Business, comprised of the Motion Picture and Television Production segments, reported revenue of $625.0 million, a decrease of 12% from $711.1 million in the prior year quarter. Segment profit of $92.1 million increased by 31% from $70.1 million in the prior year quarter.
Motion Picture segment revenue increased by 46% to $406.5 million compared to $278.8 million in the prior year quarter. Segment profit increased by 37% to $69.2 million compared to $50.5 million in the prior year quarter. Motion Picture revenue and segment profit growth were driven by strength in box office and home entertainment performance of John Wick: Chapter 4, successful multiplatform releases and strong library sales.
Television Production segment revenue decreased to $218.5 million compared to $432.3 million in the prior year quarter. Segment profit increased 17% to $22.9 million compared to $19.6 million in the prior year quarter. Revenue reflects an unfavorable comparison with last year’s higher-than-normal content deliveries, while the segment profit growth was driven by favorable year-over-year comparisons in television syndication.