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Lionsgate (LGF.A - Free Report) reported adjusted earnings of 26 cents per share for the third quarter of fiscal 2023 in contrast to the Zacks Consensus Estimate of a loss of 2 cents per share. The company had reported earnings of 2 cents in the year-ago quarter.
Revenues increased 13% year over year to $1 billion and beat the consensus mark by 15.5%.
Lions Gate Entertainment Corp. Price and Consensus
Motion Picture (28.9% of revenues) revenues increased 4.9% year over year to $288.8 million. The segment generated a profit of $76.5 million, up 13.3% year over year.
Television Production (60.5% of revenues) revenues increased 38% year over year to $605.4 million. Segmental profit was $71.5 million, which jumped 270.5% year over year.
The Media Networks segment (38% of revenues) reported revenues of $380.3 million, down 2.2% year over year. Segmental profit increased 73.7% to $49.5 million.
Starz Networks’ revenues decreased 5.7% year over year to $341.7 million.
LIONSGATE+ revenues in the quarter rose 46.2% year over year to $38.6 million.
Total global subscribers, including STARZPLAY Arabia (a non-consolidated equity method investee), decreased sequentially to 37.2 million, due to linear and OTT pressures domestically.
Excluding the international subscribers in the seven markets that LIONSGATE+ is exiting, total global subscribers were up 2.9% year over year but down sequentially to 28.7 million.
Operating Details
Lionsgate’s adjusted OIBDA increased 83.2% year over year to $167.8 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, remained flat year over year at 58.5%.
Distribution and marketing expenses, as a percentage of revenues, contracted 540 basis points (bps) to 17.1%.
Moreover, general & administrative expenses, as a percentage of revenues, decreased 120 bps year over year to 11.5%.
The company reported an operating income of $7.8 million in the reported quarter, down 16.1% from the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Lionsgate had cash and cash equivalents of $425.4 million compared with $557.1 million as of Sep 30, 2022.
Net cash flow provided by operating activities was $11.4 million at the end of the fiscal third quarter compared with $139 million of cash flow used at the end of the previous quarter.
Adjusted free cash flow was $30 million against a free cash flow of $123.5 million in the previous quarter.
Zacks Rank & Other Stocks to Consider
Lionsgate currently carries a Zacks Rank #2 (Buy).
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Lionsgate (LGF.A) Q3 Earnings Beat Estimates, Revenues Rise
Lionsgate (LGF.A - Free Report) reported adjusted earnings of 26 cents per share for the third quarter of fiscal 2023 in contrast to the Zacks Consensus Estimate of a loss of 2 cents per share. The company had reported earnings of 2 cents in the year-ago quarter.
Revenues increased 13% year over year to $1 billion and beat the consensus mark by 15.5%.
Lions Gate Entertainment Corp. Price and Consensus
Lions Gate Entertainment Corp. price-consensus-chart | Lions Gate Entertainment Corp. Quote
Segment Details
Motion Picture (28.9% of revenues) revenues increased 4.9% year over year to $288.8 million. The segment generated a profit of $76.5 million, up 13.3% year over year.
Television Production (60.5% of revenues) revenues increased 38% year over year to $605.4 million. Segmental profit was $71.5 million, which jumped 270.5% year over year.
The Media Networks segment (38% of revenues) reported revenues of $380.3 million, down 2.2% year over year. Segmental profit increased 73.7% to $49.5 million.
Starz Networks’ revenues decreased 5.7% year over year to $341.7 million.
LIONSGATE+ revenues in the quarter rose 46.2% year over year to $38.6 million.
Total global subscribers, including STARZPLAY Arabia (a non-consolidated equity method investee), decreased sequentially to 37.2 million, due to linear and OTT pressures domestically.
Excluding the international subscribers in the seven markets that LIONSGATE+ is exiting, total global subscribers were up 2.9% year over year but down sequentially to 28.7 million.
Operating Details
Lionsgate’s adjusted OIBDA increased 83.2% year over year to $167.8 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, remained flat year over year at 58.5%.
Distribution and marketing expenses, as a percentage of revenues, contracted 540 basis points (bps) to 17.1%.
Moreover, general & administrative expenses, as a percentage of revenues, decreased 120 bps year over year to 11.5%.
The company reported an operating income of $7.8 million in the reported quarter, down 16.1% from the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Lionsgate had cash and cash equivalents of $425.4 million compared with $557.1 million as of Sep 30, 2022.
Net cash flow provided by operating activities was $11.4 million at the end of the fiscal third quarter compared with $139 million of cash flow used at the end of the previous quarter.
Adjusted free cash flow was $30 million against a free cash flow of $123.5 million in the previous quarter.
Zacks Rank & Other Stocks to Consider
Lionsgate currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Consumer Discretionary sector are Liberty Global (LBTYA - Free Report) , IMAX Corporation (IMAX - Free Report) and iQIYI (IQ - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Liberty Global, IMAX Corporation and iQIYI are each scheduled to report quarterly results on Feb 22.
The Zacks Consensus Estimate for LBTYA’s fourth-quarter 2022 earnings is pegged at 49 cents per share, unchanged over the past 30 days.
The Zacks Consensus Estimate for IMAX’s fourth-quarter 2022 earnings is pegged at 15 cents per share, up by a penny over the past 30 days.
The consensus mark for IQ’s fourth-quarter 2022 earnings is pegged at 5 cents per share, up by a penny over the past 30 days.