Lionsgate Home Entertainment Has Strong Fourth Quarter25 May, 2016 By: Erik Gruenwedel
While all the talk might be about its television programming unit or record $1.5 billion filmed entertainment backlog, Lionsgate home entertainment quietly had a strong fourth quarter (ended March 31).
The Santa Monica, Calif.-based studio generated about $215 million in revenue, driven in part by disc and digital sales of The Hunger Games: Mockingjay — Part 2, Sicario and The Last Witch Hunter — the Vin Diesel box office disappointment that over-indexed at retail.
Mockingjay 2 has generated nearly $40 million in revenue from 2.1 million discs, while Witch Hunter has sold 811,000 discs for $18.1 million, and Sicario 473,000 discs for $9.8 million, according to The-Numbers.com.
The home entertainment unit generated more than $640 million in revenue from movies and TV product in fiscal 2016, which was down from $707.5 million in the prior year, reflecting the composition and performance of the slates of theatrical titles.
But back to what the market wants to talk about: Record television production. The unit generated revenue of nearly $670 million, up from $580 million in the prior-year quarter. The television business grew revenue 6% to 15.5% — driven in large part by international sales.
International revenue from the new global (Netflix) distribution deal for “Orange Is the New Black” and the reality program producer Pilgrim Studios acquisition last November help up revenue to $190.2 million, from $112.4 million a year ago.
Quarterly revenue increased 22% to $791.2 million, compared with $646.1 million a year ago. Net income was $10.9 million, down from $19.6 million during the year-ago period. Despite five wide releases in the quarter compared to three a year ago, theatrical revenue declined to $314.1 million, from $354 million.
"Our television business had a record year with all categories contributing great results, and we expect its strong growth to continue this year," CEO Jon Feltheimer said in a statement.