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Lionsgate (LGF.A) Q1 Earnings Top Estimates, Revenues Rise Y/Y

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Lionsgate (LGF.A - Free Report) reported an adjusted loss of 4 cents per share for the first quarter of fiscal 2024, narrower than the Zacks Consensus Estimate of a loss of 24 cents. The company had incurred a loss of 23 cents in the year-ago quarter.

Revenues increased 1.6% year over year to $908.6 million and beat the consensus mark by 1.75%.

Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise

 

Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise

Lions Gate Entertainment Corp. price-consensus-eps-surprise-chart | Lions Gate Entertainment Corp. Quote

Segmental Details

Motion Picture (44.7% of revenues) revenues increased 45.8% year over year to $406.5 million. The segment generated a profit of $69.2 million, up 37% year over year. The figure beat the Zacks Consensus Estimate by 18.31%.

Television Production (24% of revenues) revenues decreased 49.5% year over year to $218.5 million. Segmental profit was $22.9 million, up 16.8% year over year. The figure missed the Zacks Consensus Estimate by 21.79%.

The Media Networks segment (41.9% of revenues) reported revenues of $381.1 million, which remained steady year over year. Segmental profit increased 186.2% to $31.9 million. The figure beat the Zacks Consensus Estimate by 0.9%.

Starz Networks’ revenues decreased 3.5% year over year to $337.4 million. The figure missed the Zacks Consensus Estimate by 3.41%.

LIONSGATE+ revenues in the quarter rose 38.3% year over year to $43.7 million. The figure beat the Zacks Consensus Estimate by 53.64%.

Total global subscribers, including STARZPLAY Arabia (a non-consolidated equity method investee), decreased sequentially to 29.4 million, primarily due to linear and over-the-top (OTT) pressures domestically. The figure missed the Zacks Consensus Estimate by 3.39%.

Total OTT subscribers increased 9% year over year to 19.9 million.

Operating Details

Lionsgate’s adjusted OIBDA increased 1,614% year over year to $85.7 million in the reported quarter.

Direct operating expenses, as a percentage of revenues, contracted 1,380 basis points (bps) to 53%.

Distribution and marketing expenses, as a percentage of revenues, expanded 320 bps to 26.9%.

Moreover, general & administrative expenses, as a percentage of revenues, expanded 200 bps year over year to 13.6%.

The company reported an operating loss of $16.8 million in the reported quarter, up 75.4% from the year-ago quarter.

Balance Sheet & Cash Flow

As of Jun 30, 2023, Lionsgate had cash and cash equivalents of $272.1 million compared with $272.1 million as of Mar 31, 2023.

Net cash flow provided by operating activities was $29.2 million at the end of the fiscal first quarter compared with $13.6 million of cash flow used at the end of the previous quarter.

Adjusted free cash flow was $34.8 million against a free cash flow of negative $36.7 million in the previous quarter.

Zacks Rank & Stocks to Consider

Lionsgate currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Consumer Discretionary sector are DouYu International (DOYU - Free Report) , On Holding (ONON - Free Report) and LiveOne (LVO - Free Report) . DouYu and On Holding sport a Zacks Rank #1 (Strong Buy), and LiveOne carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DouYu, On Holding and LiveOne are scheduled to report quarterly results on Aug 14, Aug 15 and Aug 10, respectively.

The consensus mark for DOYU’s second-quarter 2023 earnings is pegged at 2 cents per share, up by 4 cents over the past 30 days.

The Zacks Consensus Estimate for ONON’s second-quarter 2023 earnings is pegged at 13 cents per share, up by a cent over the past 30 days.

The Zacks Consensus Estimate for LVO’s second-quarter 2023 loss per share is pegged at 2 cents, which remained unchanged over the past 30 days.

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