Lionsgate reports Q3 profit

MUMBAI: US film and television company Lionsgate has turned profitable in the fiscal third quarter compared to a loss in the year-ago period.

The company reported revenue of $743.6 million, EBITDA of $66.2 million, adjusted EBITDA of $87.2

million and net income of $37.8 million for the third quarter ended 31 December 2012 compared to net loss of $ 1.4 million in the prior year quarter.

For nine months, net income was $69.2 million compared to net loss of $ 16.4 million for the prior year period.

Revenue of $743.6 million in the third quarter increased by 130 per cent compared to $323.0 million in the prior year quarter, driven by the domestic theatrical box office performance of ?The Twilight Saga: Breaking Dawn ? Part 2? and several other films, continued strong home entertainment and international revenue and increased pay television revenue.

EBITDA of $66.2 million and adjusted EBITDA of $87.2 million in the third quarter compared to EBITDA of $16.6 million and adjusted EBITDA of $27.3 million in the prior year quarter.

The company noted that, excluding the $14.7 million noncash expense for extinguishment of debt related to the early payment of the balance of the Summit term loan, net income as adjusted was $52.4 million or $0.39 per basic share.

Profitability and EBITDA growth in the third quarter compared to the prior year quarter was attributable to strong performances of the company?s theatrical, home entertainment and international businesses which more than offset increased marketing costs for a larger slate of films.

The company reported $125.2 million in free cash flow in the third quarter compared to free cash flow of negative $(37.0) million in the prior year quarter.

Revenue for the nine months ended 31 December 2012 was $1.92 billion revenue from ?The Hunger Games?, which was released on DVD and digital in August.

Television revenue included in motion picture revenue was $98.8 million in the third quarter, a fourfold increase from the prior year quarter driven by contributions from ?The Hunger Games?, ?The Twilight Saga: Breaking Dawn? Part 1? and ?Good Deeds?. International motion picture revenue of $89.5 million (excluding Lionsgate U.K.) for the third quarter increased six times over from the prior year quarter driven by the strong international theatrical performances of ?The Twilight Saga: Breaking Dawn ? Part 2? and ?Step Up Revolutiom?.

Lionsgate U.K. revenue was $36.6 million, an increase of 120 per cent from the prior year quarter, on the strength of a theatrical slate driven by ?The Expendables 2? and ?What To Expect When You?re Expecting?, Lionsgate UK and third-party titles ?Magic Mike? and ?Keith Lemon: The Film? and the continued strong performance of ?The Hunger Games?.

Television production revenue was $70.1 million in the third quarter, a decline of 22 per cent compared to the prior year quarter, as strong international sales of ?Anger Management?, ?Mad Men? seasons 3, 4 and 5 and Weeds Season 8 were offset by revenue declines in domestic series licensing due to timing.