Core Insights - The release of the John Wick spinoff Ballerina, despite being a box office misfire, generated significant interest in the franchise, contributing to Lionsgate's library revenue nearing $1 billion over the past 12 months [1] Financial Performance - Library revenue increased by 12% to $989 million over the trailing 12 months, marking the third consecutive quarterly record for this metric [2] - Total revenue for the company was $555.9 million, slightly above Wall Street analysts' consensus forecast, but the loss per share of 32 cents was wider than expected [2] Division Performance - The motion picture division generated $267.3 million in revenue, a decline from $349.6 million in the same period last year [3] - The television unit performed better, with revenue rising to $288.5 million from $241.1 million [3] Profitability - Profit from the television segment more than doubled from $10.7 million in the previous year to $26 million this year, while movie profits significantly decreased to $2.4 million from $85.2 million [4] Strategic Outlook - The CEO indicated that the company is in a transitional year post-separation from Starz and is taking steps to return to solid growth by fiscal 2027, with plans for three major film releases and a doubling of scripted television series deliveries next year [5]

Core Viewpoint - Lionsgate and Lionsgate Studios are seeking shareholder approval for the separation of Lionsgate Studios' motion picture and television operations from Lionsgate's other businesses, including the STARZ subscription platforms [2][3]. Group 1: Shareholder Meetings - The annual general and special meetings for Lionsgate and Lionsgate Studios will take place on April 23, 2025 [3]. - Shareholders of record as of March 12, 2025, are entitled to vote at the meetings [3]. - The board of directors recommends that shareholders vote "FOR" each of the proposals presented [3]. Group 2: Proxy Materials - Revised proxy materials are available on the SEC's website [1]. - A supplement to the joint proxy statement/prospectus was filed on March 14, 2025, in connection with the meetings [4]. Group 3: Company Information - Lionsgate owns approximately 87% of the outstanding shares of Lionsgate Studios, which is a leading standalone content company with a diverse portfolio [12][13].

Financial Data and Key Metrics Changes - Consolidated revenue for the quarter was $971 million, with adjusted OIBDA at $144 million and operating income at $36 million. Reported fully diluted earnings per share was a loss of $0.09, while adjusted earnings per share was a profit of $0.28 [19][20] - Adjusted OIBDA for Lionsgate Studios is forecasted to be between $300 million to $320 million for the fiscal year, while Starz's North American business is expected to generate approximately $200 million of adjusted OIBDA [19][20] Business Line Data and Key Metrics Changes - Studio revenue grew 3.2% year over year to $714 million, with adjusted OIBDA increasing 45% to $112 million. Trailing twelve-month library revenue was $954 million, representing a 22% increase compared to last year's Q3 [20][21] - Motion Picture revenue for the quarter was $309 million, with segment profit at $84 million. The television segment saw revenue of $405 million, up 63% year over year, with segment profit significantly increasing to $61 million [20][21] - Media Networks revenue was $345 million, with segment profit at $25 million, reflecting a decline due to exiting most international markets [22] Market Data and Key Metrics Changes - Starz ended the quarter with 12.6 million North American OTT subscribers, representing sequential growth of 170,000 subscribers. Total North American subscribers were 20 million, showing a modest sequential decrease [23] - Starz has successfully transitioned its revenue from 70% linear to 70% digital over the past five years, doubling its domestic OTT subscriber base [16] Company Strategy and Development Direction - The company is focusing on diversifying its buyer mix and cutting costs in its television business while expanding its distribution footprint with key partner renewals and new bundling deals [7][15] - The company announced an extension of its exclusive pay one deal with Starz through 2028 and a new exclusive pay deal with Amazon Prime Video, which is expected to significantly increase contributions from the pay television window [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong fourth quarter, driven by film performance carryover, strong scripted series deliveries, and positive growth in OTT subscribers [29][30] - The company anticipates continued subscriber growth for Starz, particularly in the OTT segment, while expecting a consistent decline in the linear business [79] Other Important Information - The company is preparing for the separation of its businesses, with regulatory review ongoing and a shareholder meeting expected in mid to late April [16][40] - The company is also focusing on ancillary opportunities, including the opening of the John Wick experience in Las Vegas and various stage productions [12][51] Q&A Session Summary Question: Context for the expected increase in studio EBITDA in Q4 - Management indicated that the strong fourth quarter is driven by strength in film and TV, with carryover from mid-sized films and a robust lineup of scripted series [29][30] Question: Update on the separation process - Management confirmed that the SEC review is the last substantial item before separation, with an updated proxy expected soon [38][40] Question: Details on the Amazon relationship and its impact - The Amazon deal allows for earlier access to titles and is expected to significantly benefit both Starz and the studio post-separation [42][46] Question: Industry recovery in content production - Management noted that the TV market is slowly recovering, with a focus on leveraging strong IP and cross-divisional collaboration [57][59] Question: Cost management and talent compensation - Management acknowledged that while talent costs remain high, they are exploring innovative ways to manage overall production costs [67][68]