Hit films like “The Housemaid” and “Now You See Me: Now You Don’t” helped lift Lionsgate‘s quarterly earnings, off-setting a softer period in its television operations. Revenues at the studio increased 15.3% to $724.3 million. However, losses at the company widened from $21.9 million to $46.2 million, and the company reported losses of 16 cents per share compared to 9 cents in the prior-year period. That was largely due to the promotional costs associated with its holiday movies.
“We like our place in the media ecosystem and the trajectory of our businesses,” Lionsgate CEO Jon Feltheimer told analysts in a conference call after earnings were announced. “Our film and television pipelines are strong, our library continues to grow, and we’re replenishing it with valuable new franchises and brand-defining television series. We’re a leading global content company at a time when content is king, critical to AI, essential to our partners and the subject of every conversation around M&A and industry consolidation. ”
Lionsgate’s motion picture segment, which has struggled in recent years, showed signs of revival. Revenue grew 35% year-over-year to $421.2 million driven by the releases of “The Housemaid” and “Now You See Me: Now You Don’t,” two mid-budget hits. However, much of “The Housemaid’s” box office revenue will factor into the next quarter because the film was released on Dec. 19, with only a few more weeks left int the reporting period. Segment profit decreased from $82.7 million to $58.5 million, which was impacted the increased marketing spending on films released in the quarter. Feltheimer said that a sequel to “The Housemaid” is expected to go into production this year.
Lionsgate’s television segment saw revenue decrease 25% to $303.1 million, while profits for the division dipped slight from $60.9 million to $55.7 million. The studio attributed the decline to “the timing of episodic deliveries,” which it said was offset by licensing fees related to its library of shows, which include “The Studio” and “The Hunting Wives.”
Shares of Lionsgate were up slightly in after-hours trading with the stock hovering just under $9 a share. The company is looking noticeably slimmer after spinning off its streaming platform, Starz, in 2025.
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