Financial Performance - Lionsgate reported third quarter revenue of $970.5 million, a decrease from $975.1 million in the prior year quarter[3]. - Net loss attributable to Lionsgate shareholders was $21.9 million, or $0.09 diluted net loss per share, compared to a net loss of $106.6 million in the prior year quarter[2][19]. - Adjusted net income attributable to Lionsgate shareholders was $68.4 million, or $0.28 adjusted diluted net income per share[2][3]. - Operating income for the quarter was $35.8 million, a significant improvement from an operating loss of $43.5 million in the prior year quarter[19]. - The company reported a net cash flow used in operating activities of $163.0 million for the three months ended December 31, 2024, compared to a net cash flow provided of $128.2 million in the same period of 2023[92]. - The company experienced a significant decrease in net cash flows provided by operating activities, reporting $(118.9) million for the three months ended December 31, 2024, compared to $71.1 million in the same period of 2023[58]. - Adjusted free cash flow for the three months ended December 31, 2024, was $12.8 million, a decrease from $63.9 million in the same period of 2023[58]. - Basic net income per common share for the three months ended December 31, 2024, was $0.02, compared to a loss of $0.16 per share in the same period of 2023[90]. Segment Performance - The Studio Business reported revenue of $713.8 million, an increase of 3% from the prior year quarter, with adjusted OIBDA up 45% to $112.0 million[5]. - Television Production segment revenue increased 63% to $404.6 million, driven by higher episodic deliveries and licensing of library content[7]. - The Motion Picture segment revenue decreased to $309.2 million, attributed to the comparison with last year's successful releases[6]. - Total segment revenues for the Studio Business increased to $713.8 million in Q3 2024 from $691.6 million in Q3 2023, with Motion Picture revenues at $309.2 million and Television Production revenues at $404.6 million[34]. - Total segment profit for the three months ended December 31, 2024, was $176.7 million, slightly down from $182.0 million in the same period of 2023[34]. - The Motion Picture segment profit for Q3 2024 was $83.6 million, a decrease of 16.7% from $100.4 million in Q3 2023[99]. - Television Production segment profit surged to $60.9 million in Q3 2024, compared to $8.1 million in Q3 2023[99]. Subscriber Metrics - North American OTT subscribers grew by 170,000 sequentially, indicating a rebound in subscriber growth for STARZ[8]. - As of June 30, 2024, Starz North America had 13.20 million OTT subscribers, a decrease of 1.4% from the previous quarter, while total subscribers were 21.30 million, down 2.3%[40]. - The total global subscribers, excluding territories exited, were 27.17 million as of June 30, 2024, a decline of 2.0% from the previous quarter[40]. Cash Flow and Investments - The company reported a significant increase in investment in films and television programs, with a net cash outflow of $530.9 million for the three months ended December 31, 2024[21]. - Cash, cash equivalents, and restricted cash at the end of the period were $254.1 million, down from $333.2 million at the end of the previous year[21]. - The company incurred direct operating expenses of $457.1 million for the three months ended December 31, 2024, compared to $433.6 million in the same period of 2023, an increase of 5.4%[90]. - Total production loans and programming notes increased to $1,940.2 million at the end of the period, up from $1,931.0 million at the beginning[62]. - The company reported capital expenditures of $5.4 million for the three months ended December 31, 2024, compared to $6.4 million in the same period of 2023[58]. Restructuring and Impairment - Lionsgate is preparing for the separation of its studio and STARZ, with a focus on enhancing profitability and growth strategies[4]. - The Company recorded restructuring and other costs of $43.3 million for the three months ended December 31, 2024, significantly lower than $116.9 million in the same period of 2023[45]. - Content impairment charges related to the Media Networks segment were $6.4 million for the three months ended December 31, 2024, a substantial decrease from $77.8 million in the prior year[46]. - The Company has incurred total impairment charges of $735.1 million since the inception of its restructuring plan through December 31, 2024[46]. - The Company plans to continue evaluating its Media Networks business and may expand its restructuring plan, potentially exiting additional territories[47]. Non-GAAP Measures - Adjusted OIBDA is a key performance measure, reflecting operating income before adjusted depreciation and amortization, and is used to evaluate the aggregate operating performance of the business[66]. - The Company utilizes non-GAAP financial measures to assess its operating performance, which are not a substitute for GAAP measures but provide useful insights for investors[81]. - Adjusted Net Income (Loss) attributable to Lions Gate Entertainment Corp. shareholders is adjusted for various non-operating items, providing a clearer view of the Company's operational performance[78]. - The total segment profit combines the Motion Picture and Television Production segments, providing insight into the overall profitability of the Company's operations[126]. - Adjusted Free Cash Flow is defined as net cash flows from operating activities minus capital expenditures, plus or minus production and related loans, providing a clearer picture of liquidity[129].
Lions Gate Entertainment(LGF_A) - 2025 Q3 - Quarterly Results