Post by The Ultimate Nullifier on Feb 8, 2015 20:32:40 GMT -6
variety.com/2015/film/news/lionsgate-earnings-top-wall-street-forecast-1201425208/
Lionsgate has reported earnings above Wall Street forecasts with $98.2 million, or 70 cents a share, for its third fiscal quarter ended Dec. 31, up 11% from the year-ago quarter.
The studio said gains in profits and margins were due to “The Hunger Games: Mockingjay-Part 1,” robust domestic TV series licensing, lower marketing costs, a reduction in the effective tax rate and increased earnings from investments.
Revenues for the studio declined 11% to $751.3 million as declines in motion picture revenue offset gains in TV production revenue. Lionsgate released only two movies (“Mockingjay” and “John Wick”) during the more recent quarter, compared with four in the year-ago quarter (“The Hunger Games: Catching Fire,” “A Madea Christmas,” “Ender’s Game and “Escape Plan”).
Analysts had forecast that earnings — which were released after the market closed Thursday — would come in at 65 cents a share. Revenues came in about 3.7% under a consensus estimate of $779 million while EBITDA of $146.8 million was slightly above expectations of $145.2 million.
The stock was down about 2% in afterhours trading, sliding 56 cents to $28.74 as of 5 p.m. EST.
“Our strong financial results in the quarter were driven by growing margins across our businesses,” said Lionsgate CEO Jon Feltheimer. “Our television division had another stellar quarter as it continues to emerge as a leading supplier of premium scripted content, and our film business achieved strong profitability with a diverse portfolio of films. We’re also pleased to see our digital initiatives beginning to deliver incremental revenue and profits, and we expect their contributions to continue to grow.”
Overall motion picture segment revenue fell 22% to $590.1 million. “Mockingjay,” the third film in the “Hunger Games” franchise, has taken in $335 million in the U.S. and another $379 million overseas — but those numbers are behind the $425 million domestic and $440 million international for “Catching Fire.” “Mockingjay” will open this weekend in China.
Home entertainment revenue declined 10% to $200.7 million. “Mockingjay” will be released digitally on Feb. 17 and on DVD and Blu-ray on March 6.
Revenue for the TV production segment nearly doubled to $161.2 million due to gains in domestic TV licensing, international TV revenue and home entertainment revenue from TV production.
Lionsgate noted it delivered a record 74 episodes and 58.5 hours of domestic TV series during the quarter, including segments of “Anger Management,” “Orange is the New Black,” “Nashville,” “Ascension,” “Mad Men” and “Manhattan.”
The studio said the quarter also benefitted from “significant” domestic TV revenue from the game and talk shows “Celebrity Name Game,” “Family Feud” and “The Wendy Williams Show.”
International television revenue included licensing of “Anger Management,” “Orange is the New Black,” “Nashville” and “Mad Men.”
Lionsgate has reported earnings above Wall Street forecasts with $98.2 million, or 70 cents a share, for its third fiscal quarter ended Dec. 31, up 11% from the year-ago quarter.
The studio said gains in profits and margins were due to “The Hunger Games: Mockingjay-Part 1,” robust domestic TV series licensing, lower marketing costs, a reduction in the effective tax rate and increased earnings from investments.
Revenues for the studio declined 11% to $751.3 million as declines in motion picture revenue offset gains in TV production revenue. Lionsgate released only two movies (“Mockingjay” and “John Wick”) during the more recent quarter, compared with four in the year-ago quarter (“The Hunger Games: Catching Fire,” “A Madea Christmas,” “Ender’s Game and “Escape Plan”).
Analysts had forecast that earnings — which were released after the market closed Thursday — would come in at 65 cents a share. Revenues came in about 3.7% under a consensus estimate of $779 million while EBITDA of $146.8 million was slightly above expectations of $145.2 million.
The stock was down about 2% in afterhours trading, sliding 56 cents to $28.74 as of 5 p.m. EST.
“Our strong financial results in the quarter were driven by growing margins across our businesses,” said Lionsgate CEO Jon Feltheimer. “Our television division had another stellar quarter as it continues to emerge as a leading supplier of premium scripted content, and our film business achieved strong profitability with a diverse portfolio of films. We’re also pleased to see our digital initiatives beginning to deliver incremental revenue and profits, and we expect their contributions to continue to grow.”
Overall motion picture segment revenue fell 22% to $590.1 million. “Mockingjay,” the third film in the “Hunger Games” franchise, has taken in $335 million in the U.S. and another $379 million overseas — but those numbers are behind the $425 million domestic and $440 million international for “Catching Fire.” “Mockingjay” will open this weekend in China.
Home entertainment revenue declined 10% to $200.7 million. “Mockingjay” will be released digitally on Feb. 17 and on DVD and Blu-ray on March 6.
Revenue for the TV production segment nearly doubled to $161.2 million due to gains in domestic TV licensing, international TV revenue and home entertainment revenue from TV production.
Lionsgate noted it delivered a record 74 episodes and 58.5 hours of domestic TV series during the quarter, including segments of “Anger Management,” “Orange is the New Black,” “Nashville,” “Ascension,” “Mad Men” and “Manhattan.”
The studio said the quarter also benefitted from “significant” domestic TV revenue from the game and talk shows “Celebrity Name Game,” “Family Feud” and “The Wendy Williams Show.”
International television revenue included licensing of “Anger Management,” “Orange is the New Black,” “Nashville” and “Mad Men.”