Lions Gate Entertainment Corp. (NYSE: LGF.A, LGF.B) (“Lionsgate”) and Lionsgate Studios Corp. (Nasdaq: LION) (“Lionsgate Studios”) today reported fourth quarter results for the quarter ended March 31, 2024. Lionsgate Studios launched as a separate publicly-traded company on May 14, 2024, with parent company Lionsgate continuing to hold an approximately 87% stake in Lionsgate Studios. 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 fourth quarter revenue of $1.1 billion, operating loss of $60.9 million, and net loss attributable to Lionsgate shareholders of $39.5 million or $0.22 diluted net loss per share on 235.3 million diluted weighted average common shares outstanding. Adjusted net income attributable to Lionsgate shareholders in the quarter was $63.4 million or $0.27 adjusted diluted net earnings per share on 238.9 million diluted weighted average common shares outstanding.  Adjusted OIBDA was $140.3 million in the quarter. 

“We reported strong financial results in the fourth quarter to wrap up a great year in which we completed four major transactions, moved closer to a value-defining separation of our studio and STARZ businesses, grossed over a billion dollars at the global box office and grew our film and TV library to record levels,” said Lionsgate and Lionsgate Studios CEO Jon Feltheimer.  “With the launch of Lionsgate Studios as a pure play, publicly-traded company earlier this month, we have an opportunity to shine a light on the value of the content we are creating, owning and delivering while taking an important step forward in preparing for the anticipated full separation of our studio and STARZ businesses by the end of the calendar year.” 

Library revenue in the quarter was a record $339 million with trailing 12-month revenue of $886 million, the second best total in Lionsgate’s history.  Lionsgate reported $397 million of net cash flow provided by operating activities and $230 million in adjusted free cash flow in the full year, ending the quarter with $314 million in unrestricted cash.  Backlog from the Motion Picture and Television Production segments was $1.5 billion at March 31, 2024.

Fourth Quarter Results

The Studio Business, comprised of the Motion Picture and Television Production segments, reported revenue of $879.9 million, an increase of 6.8% from the prior year quarter.  Segment profit of $134.8 million increased by nearly 10% from the prior year quarter.  

Motion Picture segment revenue declined by 23% to $410.6 million and segment profit declined by 12% to $82.2 million.  Revenue and segment profit compared to a prior year quarter in which John Wick: Chapter Four was released theatrically.  However, Motion Picture Group segment profit of $319.6 million for the year was the highest in 10 years.  

Television Production segment revenue increased 61% to $469.3 million while segment profit increased 83% to $52.6 million.  Revenue and segment profit increases were driven by strength in library sales and an increase in post-strike content deliveries. 

Media Networks segment domestic revenue grew on a sequential basis for the third quarter in a row.  Domestic OTT subscribers were flat sequentially and overall North American net subscribers decreased by 480K.  Media Networks segment revenue decreased by 7.1% year-over-year to $361.5 million.  Domestic streaming revenue growth was offset by declines in domestic linear and LIONSGATE+ revenue.  Segment profit declined by 28.4% to $52.5 million, driven primarily by higher domestic content amortization expense.  

Lionsgate and Lionsgate Studios senior management will hold their analyst and investor conference call to discuss fiscal 2024 fourth quarter results today, May 23rd, at 5:00 PM ET/2:00 PM PT.  The consolidated financial results of Lionsgate and the operating results of Lionsgate Studios’ segments will be discussed on a single call.  Interested parties may listen to the live webcast by visiting the events page on either the Lionsgate Investor Relations website or the Lionsgate Studios Investor Relations website.  Alternatively, interested parties can join the webcast directly via the following link.  A full replay will become available this evening by clicking the same link. 

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