Core Insights - Lionsgate Studio's revenue declined for the three months ending in September, missing Wall Street forecasts due to fewer film releases and the timing of episodic TV deliveries [1][2] - The company reported an adjusted profit that exceeded expectations, with earnings per share (EPS) in line with forecasts [1] - CEO Jon Feltheimer indicated that the company is positioned for strong growth over the next 18 months with a robust film slate and renewed television series [1] Financial Performance - The Motion Picture segment generated revenue of $276.4 million, down from $409 million, with only two wide releases compared to five the previous year [1] - Profit in the Motion Picture segment increased to $30.5 million from $1.7 million [1] - Television Production revenue fell to $198.7 million, reflecting the timing of episodic deliveries, with TV profit decreasing to $12.5 million from $24.4 million [2] Consolidated Results - Consolidated revenue was reported at $475 million, down from $604 million [3] - The company achieved a record $1 billion in trailing 12-month library revenue, showcasing its portfolio of intellectual property [3] - Feltheimer expressed optimism for significant growth in the upcoming quarters and through fiscal 2027 [3] Market Reaction - Shares of Lionsgate dipped 3% in late trading following the earnings report, despite a recent increase in stock value [4] - Notably, billionaire investor Steven Cohen increased his stake in the company, acquiring over 10 million shares valued at more than $64 million [4] Upcoming Releases - Lionsgate announced the first trailer for "Michael," a biopic about Michael Jackson, set for theatrical release in April [5] - The film features Jaafar Jackson as the lead and highlights both his off-stage life and iconic performances [6] - There are indications of a potential two-part release, which may be clarified in an upcoming post-earnings call [7]

(Reuters) -Netflix (NFLX) is actively exploring a bid for Warner Bros Discovery's (WBD) studio and streaming business, retaining a financial advisor and gaining access to financial information, according to three sources familiar with the matter. The video streaming service has hired Moelis & Co, the investment bank that advised Skydance (PSKY) Media on its successful bid for Paramount Global, to evaluate a prospective offer, two of the sources said. Netflix also has been granted access to the data room, ...

Core Insights - Limitless Films, a subsidiary of Limitless X Holdings Inc. (LIMX), is gaining momentum in the entertainment industry, highlighted by a star-studded after-party during the Emmys, showcasing its ambition and upcoming projects [1][6]. Company Overview - Limitless Films is focused on producing high-impact, star-driven films that blend artistic creativity with global market appeal, aiming to shape the next generation of Hollywood entertainment [7]. - The studio has already produced two feature films starring John Travolta and is developing a diverse slate of new projects across various genres including action, drama, horror, and thriller [5]. Strategic Partnerships - The company continues its partnership with veteran Hollywood producer Arthur Sarkissian, known for the Rush Hour franchise, who brings extensive experience and vision to Limitless Films' expansion strategy [3][4]. Future Outlook - Limitless Films is poised for continued growth with plans to introduce fresh stories, bold collaborations, and international partnerships, reinforcing its position in the film industry [6].

Core Insights - Limitless X Holdings, Inc. has launched a new Investor Relations website to enhance transparency and communication with investors [1][2] - The company operates through various subsidiaries in Health and Wellness, Film and Television Production, Sports Media, Digital Assets, and Lifestyle Real Estate, positioning itself for multi-vertical growth [1][2][4] Investor Relations Website Features - The new Investor Relations site provides centralized access to financials, shareholder letters, governance, and updates across all operating divisions [1][2] - It aims to empower investors by consolidating shareholder communications, financial reporting, and strategic insights [2][6] Company Overview - Limitless X Holdings is focused on creating a high-growth, value-driven ecosystem that promotes health, wellness, entertainment, and lifestyle innovation [4] - The company is expanding its Direct-to-Consumer eCommerce platform and developing wellness-centered communities and premium lifestyle destinations [4] Strategic Goals - Limitless X is positioned for aggressive international expansion and exceptional customer engagement through a strengthening global distribution network and strategic partnerships [4] - The company emphasizes long-term value creation and transparency in its operations [2][4]

Core Viewpoint - The CEO of Lionsgate, Jon Feltheimer, indicated a potential for strategic transactions following the split from Starz, highlighting the company's understanding of its earnings power and the need for scale in the industry [1][2]. Group 1: Strategic Transactions and M&A Opportunities - Feltheimer acknowledged the possibility of a strategic transaction in the future, emphasizing that the separation from Starz was intended to create optionality for both entities [2]. - There has been speculation regarding interest from Legendary and other companies in Lionsgate, although recent news suggests that any potential deal may be more focused on co-production rather than a full merger [3]. Group 2: Library Ownership and Revenue Generation - Lionsgate reported that its library generated nearly $1 billion in revenue over the past 12 months, largely due to the success of the John Wick franchise [3]. - Feltheimer clarified that the company owns most of its library, having invested $20 billion in production over 25 years, with 29 out of the top 30 titles being owned by Lionsgate [3][4]. - The company controls and distributes 20,000 episodes of television globally and manages significant portions of its film revenue through self-distribution and licensing [3][4]. Group 3: Licensing and Risk Mitigation - Lionsgate employs a risk mitigation model for international rights, opting to license rather than sell, which allows for revenue overages from third-party partners [3]. - The company maintains control over 75% of the top 20 franchises in its licensing agreements, ensuring strong future revenue streams from its library [4].

Financial Data and Key Metrics Changes - Warner Bros. Discovery's Studios business is projected to deliver at least $2.4 billion in adjusted EBITDA in 2025, with a goal of reaching $3 billion [9] - The streaming business is on track to exceed $1.3 billion in adjusted EBITDA in 2025 and aims for over 150 million subscribers by 2026 [9][10] - The company has reduced its net leverage from over five times to 3.3 times, the lowest since the merger [10] Business Line Data and Key Metrics Changes - The Motion Pictures segment achieved a milestone by opening five consecutive films with over $45 million in domestic box office [7] - HBO Max added more than 3.4 million subscribers in Q2, continuing its global expansion [9] - Warner Bros. TV led all studios in Emmy nominations, with HBO setting a record of 142 nominations [8] Market Data and Key Metrics Changes - The company is focusing on enhancing its content licensing strategies, with an annual library revenue target of $5 billion from Warner Bros. TV and film [12] - The Networks content sales reached $580 million in 2024, significantly above the normalized run rate of approximately $200 million per quarter [20] Company Strategy and Development Direction - The strategic objectives include being the premier home for creative talent, producing high-quality film and television, and distributing content through a profitable streaming service [6] - The company is investing in its creative and operational capabilities across various segments, including HBO, Warner Bros. television, and DC studios [9] - Plans to split into two independent publicly traded companies in 2026 are underway, with current momentum expected to position both for long-term success [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's creative success and growth trajectory, particularly in the Motion Pictures and streaming segments [9] - The focus remains on delivering high-quality content and enhancing the consumer experience, with expectations for significant growth in the coming years [54][90] Other Important Information - The company is reimagining its U.S. networks portfolio as a content engine around strong unscripted brands, moving away from traditional linear networks [19] - There is a strong emphasis on bundling strategies to reduce churn and enhance customer lifetime value [83] Q&A Session Summary Question: Content licensing strategies for Warner Brothers and Discovery - Management highlighted the importance of maintaining asset value and growth over short-term financial gains, opting to sell less content into the streaming market to drive growth for HBO Max [13][14] Question: Future franchises and growth opportunities - The company is focusing on leveraging its extensive IP portfolio, including major franchises like Harry Potter and Superman, to drive revenue across various channels [26][30] Question: HBO Max U.S. distribution deal restructuring - The restructuring of the legacy deal is expected to impact revenue growth positively after 2026, with new international launches planned [46][49] Question: Addressing marketers' desire for cross-platform advertising - The company is maintaining synergy opportunities in ad sales and has seen strong pricing across all categories, particularly in sports [75] Question: Reducing churn and converting unauthorized account shares - Management is in the early stages of addressing account sharing and is implementing strategies to reduce churn through improved content scheduling and bundling [81][84]

Financial Data and Key Metrics Changes - Warner Bros. Discovery reported strong momentum in its financial performance, with the Studios business on track to deliver at least $2.4 billion in adjusted EBITDA in 2025, aiming for a $3 billion goal [8] - The streaming business is projected to exceed $1.3 billion in adjusted EBITDA in 2025, with a target of over 150 million subscribers by 2026 [8][9] - The company has significantly reduced its net leverage from over five times to 3.3 times, the lowest since the merger [9] Business Line Data and Key Metrics Changes - The Motion Pictures segment achieved a milestone by opening five consecutive films with over $45 million in domestic box office [7] - HBO Max added more than 3.4 million subscribers in Q2, continuing its global expansion [8] - Warner Bros. TV led all studios in Emmy nominations, with HBO setting a new record of 142 nominations [7] Market Data and Key Metrics Changes - The company is focusing on optimizing its global networks, including CNN and TNT Sports, to drive innovation in news, sports, and unscripted programming [9] - The U.S. networks portfolio is being reimagined as a content engine around strong unscripted brands, with content licensing expected to play a significant role in monetization [20] Company Strategy and Development Direction - The strategic objectives include being the premier home for creative talent, operating as the largest producer of film and television, and distributing content through a profitable streaming service [6] - The company is investing in its creative and operational capabilities across various segments, including HBO, Warner Bros. television, and DC studios [8] - Warner Bros. Discovery plans to split into two independent publicly traded companies in 2026, positioning both for long-term success [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's creative success and the positive trends in subscriber growth and content quality [8] - The company is focused on enhancing the consumer experience and addressing the challenges in the streaming landscape, including churn reduction and account sharing [88][89] Other Important Information - The company is exploring opportunities in theme parks and live events related to its franchises, with a focus on maximizing the value of its intellectual property [40][44] - The restructuring of the HBO Max U.S. distribution deal is expected to impact revenue growth positively after 2026 [46][49] Q&A Session Summary Question: Can you talk about your content licensing strategies? - Management highlighted the importance of maintaining a strong internal content library while balancing external licensing opportunities to drive growth [13][15] Question: What future franchises do you see as having a halo effect on the organization? - The company is focusing on leveraging its well-known IP, such as Harry Potter and DC characters, to create stability and growth across various revenue streams [27][30] Question: Can you comment on the restructuring of the HBO Max U.S. distribution deal? - The legacy deal adjustments are expected to have a meaningful impact on revenue growth, with a reacceleration anticipated after 2026 [46][49] Question: How are you addressing churn and unauthorized account sharing? - Management indicated that they are in the early stages of addressing account sharing and are implementing strategies to reduce churn through improved content scheduling and bundling [84][88] Question: How does the engagement look for ad-supported subscribers versus direct sign-ups? - The company is focusing on activation and engagement strategies for wholesale subscribers, with positive trends observed in recent partnerships [66][70]

Core Insights - Walt Disney reported Q3 FY2025 results with adjusted EPS of $1.61, exceeding analyst expectations of $1.45, while GAAP revenue was $23.7 billion, slightly below consensus by 0.18% [1][2] - The company experienced an 8% increase in total segment operating income to $4.6 billion, driven by a profitable shift in Direct-to-Consumer streaming and strong performance in the Experiences segment, despite challenges in legacy Entertainment operations [1][4] Financial Performance - Adjusted EPS (Non-GAAP) reached $1.61, a 16% increase year-over-year from $1.39 [2] - GAAP EPS was reported at $2.92, more than doubling from $1.43 in Q3 2024 [2] - Revenue (GAAP) increased by 2.2% year-over-year to $23.7 billion, compared to $23.2 billion in Q3 2024 [2] - Total segment operating income (Non-GAAP) rose to $4.6 billion, up 10% from $4.2 billion [2] - Free cash flow (Non-GAAP) increased by 58% to $1.9 billion, up from $1.2 billion [2] Subscriber and Streaming Insights - Disney+ subscribers reached 127.8 million, a 1.0% sequential increase, with international subscribers rising by 2% [5] - Hulu subscriptions grew to 55.5 million, contributing to overall streaming growth [5] - Average revenue per user (ARPU) for Disney+ remained flat in the U.S. at $8.09, with slight increases internationally [5] - The company anticipates further growth from a Charter deal expected to boost Hulu subscriptions in Q4 FY2025 [6] Experiences Segment Performance - The Experiences segment saw operating income rise to $2.5 billion, up 13% year-over-year, with domestic parks delivering $1.65 billion in operating income, a 22% increase [7] - Revenue from domestic parks reached $6.4 billion, supported by cruise line expansion and the launch of the Disney Treasure ship [7] - International parks faced a 3% decline in operating income due to lower attendance and increased costs at Shanghai Disney Resort and Hong Kong Disneyland Resort [7] Strategic Initiatives - The company is focusing on improving streaming profitability and expanding park experiences, including integrating Hulu with Disney+ and investing in new park attractions [4] - Disney plans to commit over $30 billion to expand existing parks in Florida and California, emphasizing quality and guest experience [8] - The company is recalibrating its film production strategy to enhance the quality of major properties, particularly Marvel films [10] Entertainment Segment Challenges - Operating income in the Entertainment segment declined by 15% to $1.02 billion (Non-GAAP), impacted by lower results in Content Sales/Licensing and Linear Networks [9] - Linear networks experienced a 28% decrease in operating income due to declining subscriber numbers and weaker advertising rates [9] Sports Programming Performance - Sports programming, anchored by ESPN and ESPN+, reported segment operating income of $1.0 billion, up 29% year-over-year, aided by the removal of losses from the Star India business [11] - ESPN faced a 7% decline in domestic operating income due to rising programming costs, while ARPU for ESPN+ declined by 3% to $6.40 [11] Company Outlook - Management updated guidance for FY2025, forecasting adjusted EPS of $5.85, an 18% increase from the prior year [13] - The company expects $1.3 billion in Direct-to-Consumer operating income and over 10 million new streaming subscriptions in Q4 FY2025 [13] - The Experiences segment is projected to deliver 8% operating income growth, while Sports targets 18% growth [13]

Financial Data and Key Metrics Changes - In Q1 2025, Warner Bros. Discovery gained over 5 million subscribers, totaling more than 22 million subscribers over the last twelve months [8] - The company delivered $339 million in EBITDA for the first quarter and is on track to achieve at least $1.3 billion in EBITDA for 2025, representing an 85% increase compared to 2024 [9][10] - The goal is to surpass 150 million subscribers by the end of next year [9] Business Line Data and Key Metrics Changes - The streaming segment is experiencing significant growth, with a strong pipeline of content from HBO and local language offerings enhancing relevance in various regions [10] - Warner Bros. Television is noted as the world's leading independent TV studio, contributing to the company's cultural and commercial impact [11] - The film segment is seeing success with a mix of IP-based blockbusters and original content, highlighted by the success of the Minecraft movie and upcoming releases like Final Destination [12][13] Market Data and Key Metrics Changes - The company is expanding its global footprint, with almost half the world still untapped for its streaming services [10] - Latin America leads in engagement metrics, benefiting from a comprehensive film offering and local originals [41][42] Company Strategy and Development Direction - The company emphasizes a focus on high-quality storytelling and a commitment to leveraging its extensive IP library, including franchises like DC and Harry Potter, to drive long-term growth [10][30][74] - The restructuring into two divisions aims to enhance transparency and operational efficiency, allowing for quicker responses to market opportunities [18][20] - The strategy includes a shift from a volume-based approach to prioritizing quality content, which is expected to resonate with consumers and drive subscriber growth [79][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current macroeconomic environment, noting no material impact from recent economic conditions [48] - The leadership team is focused on maintaining a diversified portfolio and managing costs effectively to safeguard financial performance [50] - Future growth is anticipated from globalization, penetration growth in existing markets, and enhancements in product offerings [87][90] Other Important Information - The company is exploring various models for sports content, balancing costs with subscriber engagement and monetization opportunities [28] - There is a strong emphasis on bundling services to enhance consumer experience and reduce churn [92][94] Q&A Session Summary Question: Insights on capital structure and leverage ratio for global linear networks - Management refrained from speculating on capital structures but emphasized the successful reorganization to capitalize on future opportunities [17][18] Question: Potential for additional subscribers in the U.S. market - Management indicated that the rollout of password sharing initiatives will gradually increase subscriber numbers over the next 12 to 18 months [21][22] Question: Sports strategy on MAX and licensing new IPs - The company is experimenting with different models for sports content and sees opportunities to leverage sports rights while balancing costs [26][28] Question: HBO's ability to produce standout hits consistently - The strength of HBO's creative team and a focus on quality storytelling are key factors in producing successful content [35][36] Question: Engagement metrics across different demographics and markets - The U.S. market shows strong engagement among younger demographics, while Latin America leads in overall engagement metrics [40][41] Question: Impact of macroeconomic conditions on advertising channels - Management reported no significant impact on advertising revenue and remains optimistic about the upcoming upfronts [48][49] Question: Content spending strategy and licensing for third-party services - The company plans to moderately increase content spending while also leveraging its IP for external licensing opportunities [77][78]

Core Insights - SHEIN has launched a limited-edition collection in collaboration with Lionsgate, inspired by "The Hunger Games" franchise, blending fashion with fandom [1][2] - The collection features bold apparel and accessories for both men and women, celebrating themes of survival, resilience, and revolution [2][3] - The Hunger Games franchise has sold over 100 million copies of its novels and grossed over $3.4 billion at the global box office [3] Company Overview - SHEIN is a global online fashion and lifestyle retailer, headquartered in Singapore, known for its affordable prices and on-demand production methodology [5] - Lionsgate Global Products & Experiences is a division of Lionsgate Studios Corp., focusing on leveraging film and television brands to drive revenue and consumer engagement through various experiences and merchandise [6] Product Details - The collection is available on SHEIN's website, with prices ranging from USD $5 to $20, encouraging social media engagement through specific hashtags [4] - The collaboration includes vibrant designs and symbolic imagery that allow fans to express their connection to "The Hunger Games" [2][3]