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LGF.A NYSE· Lions Gate Entertainment Corporation
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LGF.A NYSE· Lions Gate Entertainment Corporation
Earnings report Q4 2023

Lionsgate Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

In the latest quarter, Lionsgate experienced significant growth in its revenue across multiple segments. The company's international revenue increased by $39.4 million, or 71.2%, compared to the same period last year. This growth was primarily driven by higher revenue generated from the company's fiscal 2024 theatrical slate titles, including the successful performance of "The Hunger Games: The Ballad of Songbirds & Snakes." Theatrical revenue also saw a substantial increase of $88.4 million, mainly attributed to the success of Lionsgate Original Releases, particularly "The Hunger Games: The Ballad of Songbirds & Snakes" and "Saw X." Home entertainment revenue increased by $9.8 million, primarily due to higher digital media revenue from Lionsgate Original Releases.

Strengths

Lionsgate's strong revenue growth in the latest quarter can be attributed to the success of its theatrical releases, particularly "The Hunger Games: The Ballad of Songbirds & Snakes" and "Saw X." The company's international revenue also saw significant growth, driven by higher revenue from its fiscal 2024 theatrical slate titles. Management comments suggest that the increase in revenue from Lionsgate Original Releases was a result of a greater number of titles released in the current quarter compared to the prior year's quarter.

Challenges

Despite the overall revenue growth, the Television Production segment experienced a decrease in gross contribution compared to the same period last year. This decline was primarily due to lower television production revenue and higher direct operating expenses as a percentage of television production revenue. Additionally, general and administrative expenses in the Television Production segment increased by $2.7 million, mainly due to an increase in incentive-based compensation.

Noteworthy

The company's theatrical revenue showed a significant increase of $165.6 million in the nine months ended December 31, 2023, compared to the same period last year. This growth was driven by the performance of Lionsgate Original Releases, including "The Hunger Games: The Ballad of Songbirds & Snakes," "Saw X," and the release of "John Wick: Chapter 4" in the current period.

Summary

Lionsgate reported strong revenue growth in the latest quarter, with significant increases in international, theatrical, and home entertainment revenue. The success of Lionsgate Original Releases, particularly "The Hunger Games: The Ballad of Songbirds & Snakes" and "Saw X," contributed to the company's overall performance. However, the Television Production segment faced challenges with a decrease in gross contribution and an increase in general and administrative expenses. Overall, Lionsgate's revenue growth reflects its ability to capitalize on successful theatrical releases and expand its international market presence.

Source documents

Form 10-Q  filed on Feb 08, 2024
106 pages scanned

Reference data

Company financials Q4 revenue 975M
Analyst estimates Q4 EPS missed by -454.24%
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