Lionsgate Q1 Profit Dips 6%6 Aug, 2015 By: Erik Gruenwedel
Lionsgate Aug. 6 reported first-quarter net income of $40.6 million, down 6% from net income of $43.2 million during the prior-year period. Revenue dropped 9% to $408.9 million.
Home entertainment revenue declined 8% to $129.5 million, from $140.9 million a year ago, due in part to one less theatrical retail release compared to the previous-year period, which featured The Hunger Games: Catching Fire.
The decline offset gains from increased home entertainment revenue from television programming. Just missing the quarter was the retail release of Insurgent, which Lionsgate said launched to strong numbers on packaged media (Aug. 4), VOD and electronic sell-through platforms (July 21).
Lionsgate still has 13 wide theatrical releases in 2015, including The Hunger Games: Mockingjay — Part 2, Allegiant — Part 1, supernatural thriller The Last Witch Hunter and the critically acclaimed revenge thriller Sicario.
Television revenue included in the motion picture unit reached $48.4 million, compared with $58.8 million a year ago. International feature film segment revenue was $84.8 million, compared with $90.7 million.
Meanwhile, global demand for episodic programming helped Lionsgate’s TV production unit grow revenue 14% to $133.6 million, compared with $117.5 million in the prior-year quarter. Sales were driven by a 73% increase in international TV revenue, due in part to licensing revenue from the first three seasons of “Orange Is the New Black.”
This growth offset a decline in domestic television revenue due to timing of deliveries. Lionsgate expects to add 16 original new series to its current pipeline of programming during the fiscal year.