Financial Performance - Lionsgate reported second quarter revenue of $948.6 million, with a net loss attributable to shareholders of $163.3 million or $0.68 diluted net loss per share[1][2]. - Adjusted net loss attributable to Lionsgate shareholders was $102.5 million or $0.43 adjusted diluted net loss per share, with an adjusted OIBDA loss of $17.7 million[1][2]. - Revenues for the three months ended September 30, 2024, were $948.6 million, a decrease of 6.6% compared to $1,015.5 million for the same period in 2023[17]. - Net loss attributable to Lions Gate Entertainment Corp. shareholders for the three months ended September 30, 2024, was $163.3 million, compared to a net loss of $886.2 million for the same period in 2023[17]. - Total segment revenues for the three months ended September 30, 2024, were $948.6 million, a decrease of 6.4% from $1,015.5 million in the same period of 2023[27]. - Total segment profit for the three months ended September 30, 2024, was $15.6 million, significantly down from $173.5 million in the same period of 2023, representing a decline of 91.0%[27]. - Adjusted OIBDA for the three months ended September 30, 2024, was $(17.7) million, compared to $140.7 million in the same period of 2023[27]. - The company reported a net loss of $(114.0) million for the three months ended September 30, 2024, compared to a net income of $13.5 million in the same period of 2023[84]. Segment Performance - The Studio Business reported revenue of $823.7 million, an increase of 4% from the prior year quarter, but incurred an operating loss of $34.8 million[5]. - Motion Picture segment revenue increased by 3% to $407.1 million, while segment profit decreased to $2.6 million due to underperformance of certain releases[6]. - Television Production segment revenue increased 6% to $416.6 million, but segment profit decreased to $24.4 million due to the impact of last year's strikes[7]. - Media Networks segment revenues decreased to $346.9 million for the three months ended September 30, 2024, down 16.7% from $416.5 million in the same period of 2023[27]. - Starz Networks revenue for the three months ended September 30, 2024, was $343.0 million, slightly down from $344.0 million in the same period of 2023[30]. - Starz Networks segment profit for the three months ended September 30, 2024, was $26.9 million, down from $48.9 million in the same period of 2023, a decrease of 45.0%[30]. Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash at the end of the period were $289.3 million, an increase from $269.2 million at the end of the previous year[20]. - The company reported a net cash flow used in operating activities of $82.0 million for the three months ended September 30, 2024, compared to a net cash flow provided of $301.1 million in the same period of 2023[20]. - Net cash flows used in operating activities for the three months ended September 30, 2024, were $(82.0) million, compared to $235.8 million in the prior year[84]. - Cash flows from financing activities included borrowings of $629.9 million and repayments of $(786.0) million, resulting in a net cash outflow of $(156.1) million[114]. Restructuring and Impairment - Approximately 8% of eligible U.S. employees opted for voluntary severance and early retirement packages as part of business streamlining efforts[4]. - The company recorded restructuring and other costs of $6.1 million for the three months ended September 30, 2024, compared to $222.1 million in the same period of 2023[40]. - Impairment charges related to content for the three months ended September 30, 2024, were $3.8 million, a significant decrease from $211.6 million in the same period of 2023[41]. - The company incurred goodwill and intangible asset impairment of $663.9 million for the six months ended September 30, 2023[38]. - The company plans to continue evaluating its Media Networks business and may expand its restructuring plan, potentially incurring additional impairment charges[42]. Future Outlook - STARZ is on track to achieve its full year target of $200 million Adjusted OIBDA, positioning the company for the upcoming separation of its Studio and STARZ businesses[3]. - Lionsgate Studios Adjusted OIBDA is projected to be between $300 million and $320 million for the fiscal year ending March 31, 2025[139]. - Starz Networks Adjusted OIBDA is estimated at $200 million for the fiscal year ending March 31, 2025[140]. - The anticipated separation of Lionsgate Studios and the STARZ Business is expected to yield significant benefits, though it involves substantial capital investment[136]. General and Administrative Expenses - Corporate general and administrative expenses for the three months ended September 30, 2024, were $28.1 million, down from $32.8 million in the same period of 2023[90]. - The company reported a significant increase in segment general and administrative expenses, totaling $86.1 million for the six months ended September 30, 2024, compared to $83.1 million in 2023[91]. - The company reported a total of $177.0 million in general and administrative expenses for the six months ended September 30, 2024, compared to $175.5 million in the same period of 2023[91]. Debt and Obligations - Debt borrowings net of issuance and redemption costs for the three months ended September 30, 2024, were $1,765.7 million, compared to $594.5 million in the same period of 2023[20]. - Film-related obligations at the end of the period (current and non-current) were $1,931.0 million[53]. - Film-related obligations at the beginning of the period totaled $2,023.6 million[58]. - Film-related obligations at the end of the period decreased to $1,801.8 million[58].
Lions Gate Entertainment(LGF_B) - 2025 Q2 - Quarterly Results