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Lionsgate (LGF.A) Q2 Earnings Top Estimates, Revenues Rise Y/Y
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Lionsgate (LGF.A - Free Report) reported adjusted earnings of 15 cents per share for the second quarter of fiscal 2022, which beat the Zacks Consensus Estimate by 7.1%. However, the figure declined 54.5% year over year.
Revenues increased 19.2% year over year to $887.8 million but lagged the consensus mark by 3.33%.
Segment Details
Motion Picture (37.3% of revenues) revenues increased 28.5% year over year to $330.9 million. The segment generated profit of $101.8 million, up 22.7% year over year.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Television Production (37.8% of revenues) revenues surged 70.4% year over year to $336 million. Segmental profit was $28.5 million, which jumped 187.9% year over year.
Media Networks segment (43.3% of revenues) reported revenues of $384.7 million, down 0.9% year over year. Segmental profit decreased 94.1% to $5.5 million.
Starz Networks’ revenues decreased 0.6% year over year to $358.6 million. STARZPLAY International revenues in the quarter surged 83.8% year over year to $26.1 million.
Media Networks’ global subscribers reached 30 million, including STARZPLAY Arabia, a non-consolidated equity method investee, driven by robust domestic and international streaming subscriber growth. Global streaming subscribers increased 40% year over year to 18 million. STARZPLAY International subscribers grew 97% year over year to 7.5 million.
Operating Details
Lionsgate’s adjusted OIBDA declined 30.6% year over year to $108.2 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, expanded 520 basis points (bps) on a year-over-year basis to 54.4%.
Distribution and marketing expenses, as a percentage of revenues, expanded 210 bps on a year-over-year basis to 24.4%.
Moreover, general & administrative expenses, as a percentage of revenues, decreased 360 bps year over year to 12.4%.
Operating income was $29.8 million in the reported quarter, up 0.3% year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2021, Lionsgate had cash and cash equivalents of $442.6 million compared with $261.6 million as of Jun 30, 2021.
Net cash flow from operating activities was $16.1 million at the end of the fiscal second quarter compared with $348.7 million of cash outflow at the end of the previous quarter.
Adjusted free cash flow was $195.2 million against free cash outflow of $191.9 million in the previous quarter.
Zacks Rank & Stocks to Consider
Currently, Lionsgate carries a Zacks Rank #4 (Sell).
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Lionsgate (LGF.A) Q2 Earnings Top Estimates, Revenues Rise Y/Y
Lionsgate (LGF.A - Free Report) reported adjusted earnings of 15 cents per share for the second quarter of fiscal 2022, which beat the Zacks Consensus Estimate by 7.1%. However, the figure declined 54.5% year over year.
Revenues increased 19.2% year over year to $887.8 million but lagged the consensus mark by 3.33%.
Segment Details
Motion Picture (37.3% of revenues) revenues increased 28.5% year over year to $330.9 million. The segment generated profit of $101.8 million, up 22.7% year over year.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Lions Gate Entertainment Corp. price-consensus-eps-surprise-chart | Lions Gate Entertainment Corp. Quote
Television Production (37.8% of revenues) revenues surged 70.4% year over year to $336 million. Segmental profit was $28.5 million, which jumped 187.9% year over year.
Media Networks segment (43.3% of revenues) reported revenues of $384.7 million, down 0.9% year over year. Segmental profit decreased 94.1% to $5.5 million.
Starz Networks’ revenues decreased 0.6% year over year to $358.6 million. STARZPLAY International revenues in the quarter surged 83.8% year over year to $26.1 million.
Media Networks’ global subscribers reached 30 million, including STARZPLAY Arabia, a non-consolidated equity method investee, driven by robust domestic and international streaming subscriber growth. Global streaming subscribers increased 40% year over year to 18 million. STARZPLAY International subscribers grew 97% year over year to 7.5 million.
Operating Details
Lionsgate’s adjusted OIBDA declined 30.6% year over year to $108.2 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, expanded 520 basis points (bps) on a year-over-year basis to 54.4%.
Distribution and marketing expenses, as a percentage of revenues, expanded 210 bps on a year-over-year basis to 24.4%.
Moreover, general & administrative expenses, as a percentage of revenues, decreased 360 bps year over year to 12.4%.
Operating income was $29.8 million in the reported quarter, up 0.3% year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2021, Lionsgate had cash and cash equivalents of $442.6 million compared with $261.6 million as of Jun 30, 2021.
Net cash flow from operating activities was $16.1 million at the end of the fiscal second quarter compared with $348.7 million of cash outflow at the end of the previous quarter.
Adjusted free cash flow was $195.2 million against free cash outflow of $191.9 million in the previous quarter.
Zacks Rank & Stocks to Consider
Currently, Lionsgate carries a Zacks Rank #4 (Sell).
AMC Entertainment (AMC - Free Report) , Clarus (CLAR - Free Report) and BJ's Wholesale Club Holdings (BJ - Free Report) are some better-ranked stocks in the broader Consumer & Discretionary sector. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both AMC and Clarus are set to report their quarterly results on Nov 8. BJ’s Wholesale is scheduled to report the same on Nov 18.