Lionsgate reports $944 million revenue in Q4

Company's global OTT paid subscribers increased to 10.6 million

MUMBAI: Global content leader Lionsgate has reported fourth quarter (ending 31 March, 2020) revenue of $944 million, operating loss of $12 million and net loss attributable to Lionsgate shareholders of $45 million or $0.20 diluted net loss per share on 219.9 million diluted weighted average common shares outstanding.  

Adjusted net income attributable to Lionsgate shareholders in the quarter was $47 million or adjusted diluted EPS of $0.21, with adjusted OIBDA of $126 million. Fourth quarter cash flow provided by operating activities was $180 million and adjusted free cash flow was $175 million.

"We reported a strong quarter to end a solid fiscal year despite the disruption posed by the Covid2019 global pandemic," said Lionsgate CEO Jon Feltheimer.  "Our Lionsgate family has risen to the challenge of these unprecedented times with resilience, dedication and collaboration.  Thanks to their efforts, Starz is continuing to deliver great entertainment to our audiences in the current at-home environment; and we're working closely with all of our content partners to ensure that when production resumes and theatres re-open, we will be ready."

Full year fiscal 2020 (fiscal year ended March 31, 2020) revenue was $3.89 billion, operating income was $2.8 million, and net loss attributable to Lionsgate shareholders was $188 million, or $0.86 diluted net loss per share on 217.9 million diluted weighted average common shares outstanding.  Adjusted net income attributable to Lionsgate shareholders was $124.3 million or adjusted diluted EPS of $0.56 and adjusted OIBDA was $462 million for fiscal 2020.  Full year adjusted free cash flow was $349 million.

Driven by robust sales at home environment in the quarter, library revenues for the fiscal year reached a record $600 million.

The company reported a charge of $50.5 million in the quarter due to the Covid2019 global pandemic and related economic disruption.  This charge included, among other things, certain motion picture and television impairments and development charges associated with changes in performance expectations and the feasibility of project completions, along with costs associated with pausing film and television production.

Fourth quarter results

Media networks segment revenue of $358 million was essentially unchanged from the prior year quarter while segment profit of $26 million was impacted by the continued investment in STARZPLAY's international expansion.  STARZPLAY has launched in 50 countries and exceeded subscriber targets for the fiscal year.  Domestically, STARZ grew its OTT subscribers to 6.8 million in the quarter.

Motion picture segment revenue increased by 10 per cent to $393 million compared to the prior year quarter due to the strong home entertainment performance of Knives Out and other titles.  The only new theatrical release in the quarter, I Still Believe, was in theatres for only four days before they closed, but the studio pivoted quickly to launch the title in an exclusive premium video-on-demand window to mitigate lost theatrical revenue.  Segment profit was $101 million.

Television production segment revenue was $258 million and segment profit was $22 million driven in part by strong library sales.

Covid2019 Impact

The impact of the ongoing Covid2019 global pandemic and measures to prevent its spread, and the resulting unprecedented economic uncertainty, are affecting the company’s business in a number of ways. To date, it has experienced early termination of the theatrical run of one of its  films domestically and one of its films in the UK, delayed theatrical distribution of several films domestically and internationally, and delayed production of film and television content resulting in changes in future release dates for some titles and series. Its partners have also closed several location-based entertainment attractions based on its film and television properties. It won’t be possible to accurately predict when theatres re-open, production resumes or if and when certain of our content will be released. The full extent of the impact of the Covid2019 global pandemic on its business, operations and financial results will depend on numerous evolving factors.

Increase in TV consumption

Conversely, television and streaming consumption around the globe has increased as well as home entertainment demand. STARZ has experienced an increase in viewership of its content across all platforms as well as an increase in subscribers to its OTT services, both domestically and internationally. This increase, however, may not be indicative of future results and growth may slow as governmental and other restrictions are relaxed, and as a result of the current and possible longer term negative economic impact of the pandemic.

“In a number of instances, we have also been able to adapt to these new circumstances by releasing one of our theatrical films earlier on streaming platforms, completing post-production of one of our television series remotely and continuing the development of a number of our television series utilizing virtual writers' rooms. These changes in the way we operate may be helpful to partially offset some of the negative impacts from the pandemic.  However, the impact of these changes and the Covid2019 global pandemic are uncertain and cannot be predicted,” said the company release.

As a direct result of the Covid2019 global pandemic and the related economic disruption, including the worldwide closure of most theatres, international travel restrictions and the pausing of motion picture and television productions, during the fourth quarter of fiscal 2020 the company incurred $50.5 million in incremental costs which were expensed in the period. These costs include $46.0 million reflected in direct operating expense, which include certain motion picture and television impairments and development charges associated with changes in performance expectations or the feasibility of completing the project, costs associated with the pausing of productions, including certain cast and crew costs and incremental costs associated with bad debt reserves. In addition, these costs include $4.2 million reflected in distribution and marketing expense, which primarily consists of early marketing spends for film releases and events that have been cancelled or delayed and will provide no economic benefit, and $0.3 million in restructuring and other costs primarily due to transitioning the company to a remote-work environment and other incremental costs associated with the Covid2019 global pandemic during this period. 

Latest Reads
Saregama IP boosts profits despite revenue fall in first quarter

BENGALURU: India music label and movie studio Saregama India Ltd (Saregama) reported 100 times growth in consolidated profit after tax (PAT) at Rs 22.01 crore for the quarter ended 30 June 2020 (Q1 2021, quarter or period under review) as compared to the Rs 0.22 crore for the corresponding year ago...

Movies Hindi
Impact of Covid2019 on the advertising and film industry

The entire film fraternity was shaken with effect to the complete lockdown declared by the Indian prime minister in mid-March 2020. Industry people who were otherwise engaged 24X7 now focussed on the 21-day countdown. Twenty one days turned into three months keeping the lockdown intact. Discussion...

Movies Hindi
Quash Maharashtra govt’s age limit on sets: IMPPA to Bombay high court

MUMBAI: The Maharashtra government allowed shootings to resume but barred people above the age of 65 from participating, deprived them of a livelihood and because of which they are facing starvation, said the Indian Motion Pictures Producers' Association (IMPPA) in its petition, urging the Bombay...

Movies Hindi
Theatres seek govt aid for re-opening; film producers observe global footfall trends

Social distancing might continue to be the norm even when lockdowns are lifted completely. Theatre owners around the country are in planning mode to resume business as soon as the government gives permission.

Movies Hindi
Multiplex Association of India expresses displeasure over decision to keep cinemas, multiplexes shut in Unlock 2.0

MUMBAI: On 1 June the government of India entered into unlocking by phases. As per Unlock 2.0 guidelines, offices, high streets, markets and shopping malls, airlines are opened but there is no relief for multiplexes. It continues to be included in the prohibited activities list. Today, Multiplex...

Movies Hindi
Lionsgate Play Premiers 47 Meters Down:Uncaged in English, Hindi, Tamil and Telegu

47 Meters Down: Uncaged is a 2019 American-British survival horror film directed by Johannes Roberts and written by Roberts and Ernest Riera and a sequel to the 2017 hit 47 Meters Down. The plot follows a group of teenage girls who scuba dive to a ruined underwater city, quickly learn they have...

Movies Hindi
Series Mania announces official dates for 2021 and launches three new initiatives

MUMBAI: Series Mania founder and general director Laurence Herszberg today announced the confirmed dates for Series Mania’s 2021 edition.  Set to take place in Lille, France and the Hauts-de-France region, the Series Mania Festival is set for 19 to 27 March and the Series Mania Forum, to be held in...

Movies International
Golden Globes postponed to 28 February 2021

MUMBAI: Due to the Covid2019 pandemic, the 2021 Golden Globes will now take place on 28 February instead of its usual slot. This happens about eight weeks before the 93th Academy Awards. The Hollywood Foreign Press Association said this in a statement. Last week, the Academy of Motion Picture Arts...

Movies Hollywood
UFO Moviez reports ad rev of Rs 302 mn in Q4-FY20

MUMBAI: UFO Moviez, an in-cinema advertising platform, announced its financial results for the quarter and year ended 31 March 2020. Financial Highlights: Quarter ended 31 March 2020  Consolidated revenue stood at Rs 1,094 (Q4FY19 – Rs 1,939) million.  EBITDA stood at Rs 275 (Q4FY19 – Rs 656)...

Movies Hindi

Sign up for our Newsletter

subscribe for latest stories

* indicates required