Financial Performance - For the fiscal year ended March 31, 2024, the contributions to the Company's consolidated revenues from its reporting segments included Motion Picture 41.2%, Television Production 33.1%, and Media Networks 39.2%[32] - Intersegment revenue eliminations represented (13.6)% of consolidated revenues for the year ended March 31, 2024[32] - The Media Networks segment, which includes the Starz Domestic Platform and LIONSGATE+, generated significant revenue, with Starz Networks contributing 86.6% and LIONSGATE+ contributing 13.4%[34] Theatrical Releases - The Company released twenty-six (26) films theatrically in the U.S. during fiscal 2024, including titles such as "Are You There God? It's Me, Margaret" and "The Hunger Games: The Ballad of Songbirds & Snakes" with various release patterns[38][39] - The Company maintains a disciplined approach to theatrical production, aiming to mitigate financial risks while maximizing box office success through strategic co-financing and pre-licensing agreements[35][36] - Theatrical releases are strategically scheduled to maximize revenues, considering moviegoer attendance patterns and competition from other studios[36] Content Strategy - The Company has a diversified portfolio of film and television content, focusing on retaining key rights to create long-term value for shareholders[33] - The Motion Picture segment includes various revenue streams such as theatrical, home entertainment, television licensing, and international distribution[30] - The Company continues to evaluate release strategies, including earlier releases on streaming platforms and premium video-on-demand, to capitalize on new distribution opportunities[40] Subscriber Metrics - STARZ had 21.8 million subscribers as of March 31, 2024, excluding promotional subscribers[69] - STARZ focuses on developing original programming for underrepresented audiences, aiming to capture a broader subscriber base[73] - The Company collaborates with distributors to enhance subscriber numbers through marketing support and promotional offers[77] Original Programming - In fiscal 2024, STARZ premiered a strong lineup of original programming, including "Outlander" Season 7 and "BMF" Season 3, driving subscription and engagement[81] - STARZ app offers thousands of monthly titles, including movies and original series, enhancing user engagement and subscription growth[74] - STARZ has exclusive multiyear output licensing agreements with Lionsgate and Universal for theatrical releases, enhancing content library and subscriber appeal[82] Global Operations - The company manages operations in the South Asian market through its Mumbai office, exploring local production and distribution opportunities[53] - Lionsgate produces and distributes 100 television shows across more than 50 networks for fiscal 2024[60] - The Global Products and Experiences division drives incremental revenue through live shows, merchandise, and strategic partnerships[49] Financial Obligations - The company has a total of $1,949.4 million in film-related obligations, with an average interest rate of 7.03%[454] - The company has interest rate swap agreements to fix the interest rate on $1.7 billion of variable rate SOFR-based debt[448] - The outstanding amounts under the Revolving Credit Facility and Term Loan A may become due on December 23, 2024, if certain conditions regarding Term Loan B are not met[453] Debt Management - The company expects to refinance and extend the maturity date of Term Loan B before December 23, 2024, to avoid acceleration of the Revolving Credit Facility and Term Loan A[453] - The company repurchased $200.0 million principal amount of the 5.500% Senior Notes for $135.0 million during fiscal 2023[449] - At March 31, 2024, the 5.500% Senior Notes had an outstanding carrying value of $696.6 million, with an estimated fair value of $536.2 million[451] Diversity and Inclusion - The company aims to increase spend with diverse suppliers through its Supplier Diversity and Inclusion Program[102] - The company emphasizes diversity and inclusion in its hiring practices, ensuring fair and accessible methods[101] - The company has established short-term and long-term management succession plans for critical positions[109] Environmental Commitment - The company is committed to environmental sustainability, prioritizing efforts to prevent pollution and conserve resources[108] Competitive Landscape - The Company faces significant competition in the entertainment market, impacting its ability to attract and retain subscribers[98]
Lions Gate Entertainment(LGF_A) - 2024 Q4 - Annual Report