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Lionsgate (LGF.A) Expands in India With PVR Pictures Team-Up
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Lionsgate (LGF.A - Free Report) recently announced that it has collaborated with PVR Pictures, which is one of the leading multiplex chains in India that operates 846 screens in 176 cinemas in 71 cities. This will allow Lionsgate to bring in a big theatrical Hollywood slate to India in 2023.
The first movie that it is releasing under this contract is Plane (Jan 27) starring Gerard Butler and Mike Colter. Other films lined up include John Wick: Chapter 4 starring Keanu Reeves, The Hunger Games – The Ballad of Songbird & Snakes, White Bird: A Wonder Story featuring Gillian Anderson and Helen Mirren, comedy-drama About My Father, action-thriller Bricklayer and many more.
With Indians shifting their preferences to Hollywood movies, it is expected that this strong pipeline of movies could gain massive footfalls at the theatres and aid Lionsgate’s top line.
PVR is also in talks with Inox, another big multiplex chain in India to merge the two businesses into one. This might expose Lionsgate to another 169 multiplexes and 730 screens in 74 cities of the country, allowing it to further expand its reach, if the deal goes through.
Lionsgate Faces Competition Despite Strong Movie Slate
Lionsgate is taking initiatives to expand and grow in various developing and booming economies like India. Per Statista, revenues in the Indian cinema tickets segment are projected to reach $416.40 million in 2023, indicating an annual growth rate of 2.63%, which provides a big opportunity for Lionsgate to make business.
However Lionsgate’s Motion Picture segment has been posing serious threat from other production units such as Walt Disney (DIS - Free Report) that has been capturing huge audience with movies like Doctor Strange in the Multiverse of Madness, Black Panda: Wakanda Forever that made $411 million and $433 million respectively at box office.
Paramount (PARA - Free Report) too gained immense traction recently with the release of Top Gun Maverick that recorded $718 million at the box office globally besides Sonic the Hedgehog 2 that made $190 million
Such competitions could be the reason of Lionsgate’s revenue decline in its Motion Picture segment that fell by 32% to $224.0 million.
Lions Gate Entertainment Corp. Price and Consensus
These competitions are likely to continue in 2023 as well with Disney’s upcoming movies such as The Little Mermaid , Elemental, The Marvels and Paramount’s releases like Mission: Impossible – Dead Reckoning Part One and Transformers: Rise of the Beasts that could gain immense traction and hinder growth at Lionsgate.
Shares of Lionsgate have plunged 68.4% over the last one year against the Zacks Consumer Discretionary space that declined 34.1%.
A better-ranked stocks in the same sector is Liberty Media (FWONK - Free Report) that sports a Zacks Rank #1 (Strong Buy).
Liberty Media’s share price decreased 5.8% year over year. The Zacks Consensus Estimate for earnings is pegged at 10 cents, which has moved up by 42% over the past 30 days.
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Lionsgate (LGF.A) Expands in India With PVR Pictures Team-Up
Lionsgate (LGF.A - Free Report) recently announced that it has collaborated with PVR Pictures, which is one of the leading multiplex chains in India that operates 846 screens in 176 cinemas in 71 cities. This will allow Lionsgate to bring in a big theatrical Hollywood slate to India in 2023.
The first movie that it is releasing under this contract is Plane (Jan 27) starring Gerard Butler and Mike Colter. Other films lined up include John Wick: Chapter 4 starring Keanu Reeves, The Hunger Games – The Ballad of Songbird & Snakes, White Bird: A Wonder Story featuring Gillian Anderson and Helen Mirren, comedy-drama About My Father, action-thriller Bricklayer and many more.
With Indians shifting their preferences to Hollywood movies, it is expected that this strong pipeline of movies could gain massive footfalls at the theatres and aid Lionsgate’s top line.
PVR is also in talks with Inox, another big multiplex chain in India to merge the two businesses into one. This might expose Lionsgate to another 169 multiplexes and 730 screens in 74 cities of the country, allowing it to further expand its reach, if the deal goes through.
Lionsgate Faces Competition Despite Strong Movie Slate
Lionsgate is taking initiatives to expand and grow in various developing and booming economies like India. Per Statista, revenues in the Indian cinema tickets segment are projected to reach $416.40 million in 2023, indicating an annual growth rate of 2.63%, which provides a big opportunity for Lionsgate to make business.
However Lionsgate’s Motion Picture segment has been posing serious threat from other production units such as Walt Disney (DIS - Free Report) that has been capturing huge audience with movies like Doctor Strange in the Multiverse of Madness, Black Panda: Wakanda Forever that made $411 million and $433 million respectively at box office.
Paramount (PARA - Free Report) too gained immense traction recently with the release of Top Gun Maverick that recorded $718 million at the box office globally besides Sonic the Hedgehog 2 that made $190 million
Such competitions could be the reason of Lionsgate’s revenue decline in its Motion Picture segment that fell by 32% to $224.0 million.
Lions Gate Entertainment Corp. Price and Consensus
Lions Gate Entertainment Corp. price-consensus-chart | Lions Gate Entertainment Corp. Quote
These competitions are likely to continue in 2023 as well with Disney’s upcoming movies such as The Little Mermaid , Elemental, The Marvels and Paramount’s releases like Mission: Impossible – Dead Reckoning Part One and Transformers: Rise of the Beasts that could gain immense traction and hinder growth at Lionsgate.
Shares of Lionsgate have plunged 68.4% over the last one year against the Zacks Consumer Discretionary space that declined 34.1%.
Zacks Rank & Stocks to Consider
Lionsgate currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stocks in the same sector is Liberty Media (FWONK - Free Report) that sports a Zacks Rank #1 (Strong Buy).
Liberty Media’s share price decreased 5.8% year over year. The Zacks Consensus Estimate for earnings is pegged at 10 cents, which has moved up by 42% over the past 30 days.