Starz Entertainment Corp(STRZ) - 2025 Q3 - Quarterly Results

Lionsgate and Lionsgate Studios Report Results for Third Quarter Fiscal 2025 This report details the financial and operational performance of Lionsgate and Lionsgate Studios for the third quarter of fiscal year 2025 Financial Highlights Lionsgate's Q3 FY2025 highlights include $970.5 million revenue, $21.9 million net loss, and $144.2 million Adjusted OIBDA Lionsgate Q3 FY2025 Key Financial Metrics | Metric | Value (in millions USD) | | :--- | :--- | | Revenue | $970.5 | | Operating Income | $35.8 | | Net Loss Attributable to Shareholders | $(21.9) | | Diluted Net Loss Per Share | $(0.09) | | Adjusted Net Income Attributable to Shareholders | $68.4 | | Adjusted Diluted Net Income Per Share | $0.28 | | Adjusted OIBDA | $144.2 | - Trailing 12-month library revenue reached a record $954 million, marking a 22% increase from the prior year quarter[2][4] - CEO Jon Feltheimer highlighted the strong quarterly performance amidst a challenging environment, noting record library performance, profitability in mid-budget films, a strong television portfolio, and a return to domestic OTT subscriber growth for STARZ on a sequential basis[4] Segment Performance Overview Studio Business revenue grew 3% to $713.8 million, Adjusted OIBDA surged 45% to $112.0 million Studio Business Performance (Q3 FY2025 vs Q3 FY2024) | Metric | Q3 FY2025 (in millions USD) | Q3 FY2024 (in millions USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | $713.8 | ~$693.0 (implied) | +3% | | Adjusted OIBDA | $112.0 | $77.4 | +45% | - The Motion Picture segment's revenue and profit decreased due to a difficult comparison with the prior year's quarter, which included major theatrical releases like The Hunger Games: The Ballad of Songbirds and Snakes and Saw X[6] - The Television Production segment experienced significant growth, with revenue up 63% to $404.6 million and a substantial increase in segment profit to $60.9 million. This was attributed to more episodic deliveries, library content licensing, and recovery from last year's industry strikes[7] - Media Networks' North American revenue slightly decreased to $341.9 million, and segment profit fell to $25.7 million due to higher content amortization. However, North American OTT subscribers grew by 170,000 sequentially[8] Lions Gate Entertainment Corp. Financials This section presents the consolidated financial statements and segment performance for Lions Gate Entertainment Corp Consolidated Financial Statements Lionsgate's consolidated financials show $7.17 billion total assets, a $21.9 million net loss, and $118.9 million operating cash outflow Consolidated Balance Sheets This chapter presents the consolidated balance sheet data for the specified periods Consolidated Balance Sheet Highlights (in millions USD) | Account | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $200.5 | $314.0 | | Total current assets | $1,070.9 | $1,463.5 | | Total assets | $7,167.3 | $7,092.7 | | Debt - short term portion | $119.0 | $860.3 | | Debt (long-term) | $2,441.8 | $1,619.7 | | Total liabilities | $7,323.7 | $7,279.9 | | Total equity (deficit) | $(256.1) | $(310.5) | Consolidated Statements of Operations This chapter outlines the consolidated statements of operations for the specified periods Consolidated Statement of Operations (Three Months Ended Dec 31, in millions USD) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenues | $970.5 | $975.1 | | Operating income (loss) | $35.8 | $(43.5) | | Net loss attributable to shareholders | $(21.9) | $(106.6) | | Diluted net loss per common share | $(0.09) | $(0.45) | Consolidated Statements of Cash Flows This chapter details the consolidated statements of cash flows for the specified periods Consolidated Statement of Cash Flows (Three Months Ended Dec 31, in millions USD) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash Provided By (Used In) Operating Activities | $(118.9) | $71.1 | | Net Cash Used In Investing Activities | $(3.1) | $(334.0) | | Net Cash Provided By Financing Activities | $92.8 | $324.4 | Segment Information Lionsgate's segments show Studio Business revenue of $713.8 million and profit of $144.5 million Segment Revenue and Profit This chapter provides a breakdown of segment revenue and profit for the specified periods Segment Performance (Three Months Ended Dec 31, in millions USD) | Segment | Revenue 2024 | Revenue 2023 | Profit 2024 | Profit 2023 | | :--- | :--- | :--- | :--- | :--- | | Motion Picture | $309.2 | $443.2 | $83.6 | $100.4 | | Television Production | $404.6 | $248.4 | $60.9 | $8.1 | | Total Studio Business | $713.8 | $691.6 | $144.5 | $108.5 | | Media Networks | $344.5 | $417.2 | $24.9 | $85.5 | Media Networks Subscriber Data This chapter presents subscriber data for the Media Networks segment Starz North America Subscribers (in millions) | Date | OTT Subscribers | Linear Subscribers | Total | | :--- | :--- | :--- | :--- | | 9/30/24 | 12.40 | 7.75 | 20.15 | | 12/31/24 | 12.57 | 7.36 | 19.93 | - Total global subscribers, including STARZPLAY Arabia and excluding territories being exited, decreased to 24.57 million as of December 31, 2024, down from 25.66 million in the previous quarter and 27.92 million in the prior year[40][43] Non-GAAP Financial Measures and Reconciliations GAAP operating income of $35.8 million adjusted to $144.2 million Adjusted OIBDA, net loss to $68.4 million Adjusted Net Income Reconciliation of Operating Income to Adjusted OIBDA This chapter reconciles GAAP operating income to Adjusted OIBDA Reconciliation to Adjusted OIBDA (Q3 FY2025, in millions USD) | Line Item | Amount | | :--- | :--- | | Operating income | $35.8 | | Restructuring and other | $43.3 | | Purchase accounting and related adjustments | $38.3 | | Adjusted share-based compensation expense | $18.4 | | Other adjustments | $8.4 | | Adjusted OIBDA | $144.2 | Reconciliation of Net Loss to Adjusted Net Income This chapter reconciles GAAP net loss to Adjusted Net Income Reconciliation to Adjusted Net Income (Q3 FY2025, in millions USD) | Line Item | Amount | | :--- | :--- | | Reported Net Loss Attributable to Shareholders | $(21.9) | | Restructuring and other | $43.3 | | Purchase accounting and related adjustments | $38.3 | | Adjusted share-based compensation expense | $18.4 | | Other adjustments (net) | $(9.7) | | Adjusted Net Income Attributable to Shareholders | $68.4 | Reconciliation of Operating Cash Flow to Adjusted Free Cash Flow This chapter reconciles operating cash flow to Adjusted Free Cash Flow Reconciliation to Adjusted Free Cash Flow (Q3 FY2025, in millions USD) | Line Item | Amount | | :--- | :--- | | Net Cash Flows Used In Operating Activities | $(118.9) | | Capital expenditures | $(5.4) | | Net borrowings of production and related loans | $124.3 | | Other adjustments | $12.8 | | Adjusted Free Cash Flow | $12.8 | - The company defines and uses non-GAAP measures such as Adjusted OIBDA, Adjusted Free Cash Flow, and Adjusted Net Income to evaluate operating performance by excluding items like restructuring costs, share-based compensation, and purchase accounting adjustments[66][67][73] Lionsgate Studios Corp. Financial Information This section provides the standalone financial statements and segment performance for Lionsgate Studios Corp Consolidated Financial Statements (Lionsgate Studios) Lionsgate Studios reported $5.37 billion total assets, $713.8 million revenue, and $49.6 million operating income Consolidated Balance Sheets (Lionsgate Studios) This chapter presents the consolidated balance sheet data for Lionsgate Studios for the specified periods Lionsgate Studios Balance Sheet Highlights (in millions USD) | Account | Dec 31, 2024 | Mar 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $186.2 | $277.0 | | Total assets | $5,374.5 | $5,103.0 | | Total liabilities | $6,324.6 | $6,129.9 | | Total equity (deficit) | $(1,049.8) | $(1,150.2) | Consolidated Statements of Operations (Lionsgate Studios) This chapter outlines the consolidated statements of operations for Lionsgate Studios for the specified periods Lionsgate Studios Statement of Operations (Three Months Ended Dec 31, in millions USD) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Total revenues | $713.8 | $691.6 | | Operating income | $49.6 | $7.3 | | Net income attributable to shareholders | $6.4 | $(41.1) | | Diluted net income per common share | $0.02 | $(0.16) | Consolidated Statements of Cash Flows (Lionsgate Studios) This chapter details the consolidated statements of cash flows for Lionsgate Studios for the specified periods Lionsgate Studios Statement of Cash Flows (Three Months Ended Dec 31, in millions USD) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash Provided By (Used In) Operating Activities | $(163.0) | $128.2 | | Net Cash Provided By (Used In) Investing Activities | $1.0 | $(317.8) | | Net Cash Provided By Financing Activities | $137.4 | $267.8 | Segment Information (Lionsgate Studios) Lionsgate Studios' Q3 FY25 saw Television Production revenue of $404.6 million (63% increase), with total segment profit of $144.5 million Lionsgate Studios Segment Performance (Three Months Ended Dec 31, in millions USD) | Segment | Revenue 2024 | Revenue 2023 | Profit 2024 | Profit 2023 | | :--- | :--- | :--- | :--- | :--- | | Motion Picture | $309.2 | $443.2 | $83.6 | $100.4 | | Television Production | $404.6 | $248.4 | $60.9 | $8.1 | | Total Segment Profit | | | $144.5 | $108.5 | Non-GAAP Financial Measures and Reconciliations (Lionsgate Studios) Lionsgate Studios' GAAP operating income of $49.6 million adjusted to $112.0 million Adjusted OIBDA, net income to $62.8 million Reconciliation of Operating Income to Adjusted OIBDA (Lionsgate Studios) This chapter reconciles Lionsgate Studios' GAAP operating income to Adjusted OIBDA Lionsgate Studios Reconciliation to Adjusted OIBDA (Q3 FY2025, in millions USD) | Line Item | Amount | | :--- | :--- | | Operating income | $49.6 | | Restructuring and other | $40.9 | | Adjusted share-based compensation expense | $14.3 | | Corporate general and administrative expenses | $28.4 | | Other adjustments | $11.6 | | Total Segment Profit | $144.5 | | Less: Corporate G&A and Unallocated Rent | $(32.5) | | Adjusted OIBDA | $112.0 | Reconciliation of Net Income to Adjusted Net Income (Lionsgate Studios) This chapter reconciles Lionsgate Studios' GAAP net income to Adjusted Net Income Lionsgate Studios Reconciliation to Adjusted Net Income (Q3 FY2025, in millions USD) | Line Item | Amount | | :--- | :--- | | Reported Net Income Attributable to Shareholders | $6.4 | | Restructuring and other | $40.9 | | Adjusted share-based compensation expense | $14.3 | | Other adjustments (net) | $1.2 | | Adjusted Net Income Attributable to Shareholders | $62.8 | Reconciliation of Operating Cash Flow to Adjusted Free Cash Flow (Lionsgate Studios) This chapter reconciles Lionsgate Studios' operating cash flow to Adjusted Free Cash Flow Lionsgate Studios Reconciliation to Adjusted Free Cash Flow (Q3 FY2025, in millions USD) | Line Item | Amount | | :--- | :--- | | Net Cash Flows Used In Operating Activities | $(163.0) | | Capital expenditures | $(1.3) | | Net borrowings of production and related loans | $116.4 | | Payments on transaction costs | $1.9 | | Adjusted Free Cash Flow | $(46.0) | - Lionsgate Studios uses non-GAAP measures like Adjusted OIBDA and Adjusted Free Cash Flow to evaluate performance, excluding items such as restructuring costs, purchase accounting, and share-based compensation to provide a view consistent with management's perspective[126][127][133]