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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 21 cents per share for the second quarter of fiscal 2024, against the Zacks Consensus Estimate of a loss of 3 cents. The company had incurred a loss of 12 cents in the year-ago quarter.
Revenues increased 16% year over year to $1.02 billion and beat the consensus mark by 2.95%.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Motion Picture (39% of revenues) revenues increased 76.6% year over year to $395.9 million. The segment generated a profit of $67.5 million, up 37% year over year. The figure beat the Zacks Consensus Estimate by 21.68%.
Television Production (38.8% of revenues) revenues dropped 8.6% year over year to $393.9 million. Segmental profit was $63.2 million, up 364.7% year over year. The figure beat the Zacks Consensus Estimate by 26.2%.
The Media Networks segment (41% of revenues) reported revenues of $416.5 million, which increased 5.2% year over year. Segmental profit increased 217.1% to $66.6 million. The figure beat the Zacks Consensus Estimate by 69.11%.
Starz Networks’ revenues decreased 5% year over year to $339.8 million. The figure missed the Zacks Consensus Estimate by 7.68%.
LIONSGATE+ revenues in the quarter rose 98.7% year over year to $76.7 million. The figure beat the Zacks Consensus Estimate by 61.29%.
Total global subscribers, including STARZPLAY Arabia (a non-consolidated equity method investee), decreased sequentially to 28.04 million, primarily due to linear and over-the-top (OTT) pressures domestically. The figure missed the Zacks Consensus Estimate by 4.18%.
Total OTT subscribers increased 10.8% year over year to 18.8 million.
Operating Details
Lionsgate’s adjusted OIBDA increased 196.8% year over year to $140.7 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, contracted 950 basis points (bps) to 54.9%.
Distribution and marketing expenses, as a percentage of revenues, expanded 70 bps to 21.8%.
Moreover, general & administrative expenses, as a percentage of revenues, contracted 170 bps year over year to 12.2%.
The company reported an operating income of $58 million in the reported quarter, up 208% from the year-ago quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2023, Lionsgate had cash and cash equivalents of $223.6 million compared with $322.7 million as of Jun 30, 2023.
Net cash flow provided by operating activities was $301.1 million at the end of the fiscal second quarter compared with $29.2 million of cash flow used at the end of the previous quarter.
Adjusted free cash flow was $133.4 million compared with a free cash flow of $34.8 million in the previous quarter.
Zacks Rank & Stocks to Consider
Lionsgate currently carries a Zacks Rank #3 (Hold).
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Lionsgate (LGF.A) Q2 Earnings Top Estimates, Revenues Rise Y/Y
Lionsgate (LGF.A - Free Report) reported adjusted earnings of 21 cents per share for the second quarter of fiscal 2024, against the Zacks Consensus Estimate of a loss of 3 cents. The company had incurred a loss of 12 cents in the year-ago quarter.
Revenues increased 16% year over year to $1.02 billion and beat the consensus mark by 2.95%.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Lions Gate Entertainment Corp. price-consensus-eps-surprise-chart | Lions Gate Entertainment Corp. Quote
Segment Details
Motion Picture (39% of revenues) revenues increased 76.6% year over year to $395.9 million. The segment generated a profit of $67.5 million, up 37% year over year. The figure beat the Zacks Consensus Estimate by 21.68%.
Television Production (38.8% of revenues) revenues dropped 8.6% year over year to $393.9 million. Segmental profit was $63.2 million, up 364.7% year over year. The figure beat the Zacks Consensus Estimate by 26.2%.
The Media Networks segment (41% of revenues) reported revenues of $416.5 million, which increased 5.2% year over year. Segmental profit increased 217.1% to $66.6 million. The figure beat the Zacks Consensus Estimate by 69.11%.
Starz Networks’ revenues decreased 5% year over year to $339.8 million. The figure missed the Zacks Consensus Estimate by 7.68%.
LIONSGATE+ revenues in the quarter rose 98.7% year over year to $76.7 million. The figure beat the Zacks Consensus Estimate by 61.29%.
Total global subscribers, including STARZPLAY Arabia (a non-consolidated equity method investee), decreased sequentially to 28.04 million, primarily due to linear and over-the-top (OTT) pressures domestically. The figure missed the Zacks Consensus Estimate by 4.18%.
Total OTT subscribers increased 10.8% year over year to 18.8 million.
Operating Details
Lionsgate’s adjusted OIBDA increased 196.8% year over year to $140.7 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, contracted 950 basis points (bps) to 54.9%.
Distribution and marketing expenses, as a percentage of revenues, expanded 70 bps to 21.8%.
Moreover, general & administrative expenses, as a percentage of revenues, contracted 170 bps year over year to 12.2%.
The company reported an operating income of $58 million in the reported quarter, up 208% from the year-ago quarter.
Balance Sheet & Cash Flow
As of Sep 30, 2023, Lionsgate had cash and cash equivalents of $223.6 million compared with $322.7 million as of Jun 30, 2023.
Net cash flow provided by operating activities was $301.1 million at the end of the fiscal second quarter compared with $29.2 million of cash flow used at the end of the previous quarter.
Adjusted free cash flow was $133.4 million compared with a free cash flow of $34.8 million in the previous quarter.
Zacks Rank & Stocks to Consider
Lionsgate currently carries a Zacks Rank #3 (Hold).
NetEase (NTES - Free Report) , AST SpaceMobile (ASTS - Free Report) and Genius Sports Limited (GENI - Free Report) are some better-ranked stocks that investors can consider in the broader sector. While NTES sports a Zacks Rank #1 (Strong Buy), ASTS and GENI carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of NetEase have gained 55.5% year to date. NTES is set to report its third-quarter 2023 results on Nov 16.
Shares of AST SpaceMobile have declined 14.3% year to date. ASTS is slated to report its third-quarter 2023 results on Nov 13.
Shares of Genius Sports Limited have gained 45.1% year to date. GENI is set to report its third-quarter 2023 results on Nov 13.