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, compared to 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 $(118.9) million for the three months ended December 31, 2024, compared to $71.1 million in the same period of 2023[21]. - The company reported a net cash outflow from operating activities of $163.0 million for the three months ended December 31, 2024, compared to an inflow of $128.2 million in the same period of 2023[92]. - Adjusted free cash flow for the three months ended December 31, 2024, was $12.8 million, down from $63.9 million in the same period last year[57]. - Adjusted free cash flow for the nine months ended December 31, 2024, was $(306.6) million, a decline from $231.1 million in the same period of 2023[114]. 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 theatrical releases[6]. - Total segment revenues for the Studio Business reached $713.8 million for the three months ended December 31, 2024, compared to $691.6 million in the prior year, reflecting a 3.2% increase[34]. - The Television Production segment generated revenues of $404.6 million for the three months ended December 31, 2024, up 62.8% from $248.4 million in the same period of 2023[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]. - Total segment profit increased by 33.2% to $144.5 million for the three months ended December 31, 2024, compared to $108.5 million in the same period of 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 from 21.80 million[40]. - The total number of global subscribers, including STARZPLAY Arabia, was 27.17 million as of June 30, 2024, a decrease from 27.54 million in the previous quarter[40]. Cash and Liquidity - The company’s 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]. - Cash and cash equivalents at the end of the period were $239.8 million, down from $297.4 million at the end of December 2023[92]. - 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 prior year[90]. - The company reported an increase in borrowings from $868.1 million to $1,346.6 million year-over-year, indicating a significant rise in financing activities[120]. Restructuring and Impairments - Lionsgate is preparing for the separation of its studio and STARZ, with a focus on enhancing operational performance and profitability[4]. - The restructuring plan has incurred impairment charges totaling $735.1 million since its inception, with net recoveries of content impairment charges of $6.4 million for the three months ended December 31, 2024[46]. - The Company expects to incur approximately $26.1 million in severance expenses related to voluntary severance and early retirement packages, with $14.6 million recognized in the three and nine months ended December 31, 2024[49]. - The company is evaluating its Media Networks business and may expand its restructuring plan, potentially exiting additional territories or removing certain content from its platform[47]. - Goodwill and intangible asset impairment charges were not recorded in the three months ended December 31, 2024, compared to $663.9 million in the same period of 2023[53]. Acquisitions and Growth Strategy - The company completed the acquisition of eOne on December 27, 2023, which is expected to enhance its content portfolio and market reach[30]. - The acquisition of eOne contributed to the results from December 27, 2023, impacting both Motion Picture and Television Production segments[97]. - The company plans to focus on expanding its Media Networks segment, particularly through the Starz Networks, to drive future growth[26]. - The company anticipates continued growth in the Television Production segment driven by licensing and distribution of original content[96]. Non-GAAP Measures - Adjusted OIBDA is defined as operating income before adjusted depreciation and amortization, providing insight into the operating performance of the business[66]. - The Company believes that Adjusted Free Cash Flow is an important measure of liquidity, allowing for strategic investments and debt reduction[81]. - The total segment profit and Studio Business segment profit are considered non-GAAP measures that reflect the aggregate profit contribution from the Company's segments[69]. - Adjusted Net Income attributable to Lions Gate Entertainment Corp. shareholders is defined as net income adjusted for various non-operating items, providing a clearer view of business operations[78]. - Non-GAAP financial measures are utilized to evaluate operating performance and should be considered alongside GAAP measures for a comprehensive understanding[137].
Lions Gate Entertainment(LGF_B) - 2025 Q3 - Quarterly Results