Lionsgate, led by CEO Jon Feltheimer, released its second quarter financials amid continuing strategic talks where the media giant may sell or spinoff its premium cable and streaming platform or its studio business.
The Hollywood studio saw overall revenue hit $1.01 billion, which beat a Zack Consensus Estimate for $990 million in revenues. Lionsgate also narrowed its net loss to $887.9 million, against a year-earlier net loss of $1.8 billion, due to the impact of non-cash goodwill and intangible asset writedown and restructuring charges in the media networks division related to Starz leaving Latin America and the UK.
Lionsgate posted an adjusted loss per share of $3.79. The studio’s media networks business, which includes Starz, saw segment revenues rise to $416.5 million, from a year-earlier $396.1 million.
Lionsgate has been exploring its options for Starz, including a possible separation of the pay TV and streaming business and its studio operations. The goal appears to be creating two standalone companies so investors can value the Starz and studio assets separately.
On the studio side, the motion picture segment revenues came to $396 million, up from a year-ago $224 million, while TV production segment revenues fell to $394 million, compared to $431 million in the same period last year.
Library film and TV titles generated $870 million, up 17 percent year-over-year.
Lionsgate recently acquired certain assets of Entertainment One from Hasbro for $500 million, a transaction se to close later this year.
“We had a strong financial quarter with another robust library performance and segment profit growth across our film, television and Starz businesses,” CEO Feltheimer said in a statement on Thursday. Lionsgate reaffirmed its full year 2024 guidance, even amid the negative impact of the Hollywood actors strike now settled.
“We are moving toward the close of an eOne acquisition that we believe will strengthen our studio business on a standalone basis. At Starz, the reorganization, restructuring and overhead reduction reflect our focus on preparing the service to thrive as a profitable and successful standalone company,” Feltheimer added.