Lionsgate Q2 Home Entertainment Revenue Down 6.7%9 Nov, 2015 By: Erik Gruenwedel
‘Insurgent’ generates strong physical and digital sales
Lionsgate Nov. 9 reported second-quarter (ended Sept. 30) home entertainment revenue of $153.5 million, down less than 7% from revenue of $164.4 million during the previous-year period.
Revenue was down due to fewer wide-release theatrical titles and product mix. Franchise film The Divergent Series: Insurgent performed well on packaged media, VOD and electronic sell-through. The title has sold nearly 1.5 million combined DVD/Blu-ray Disc units for $24 million since its Aug. 24 packaged-media release, according to The-Numbers.com. Insurgent was released on Digital HD July 21.
Overall motion picture revenue dropped 11% ($44 million) to $354 million. Theatrical revenue declined 41.5% ($18.6 million) to $26.3 million with only two wide releases in the quarter: American Ultra and Shaun the Sheep. The titles’ box office results paled in comparison to ticket sales of The Expendables 3 and Step Up All In last year.
Lionsgate recorded a write-down of $7.2 million on The Last Witch Hunter, a film released after the quarter.
Theatrical results were also impacted by the box office debut of critically-acclaimed revenge thriller Sicario being moved to Oct. 2. The third quarter will also feature the fourth installment of the "Hunger Games" franchise, Mockingjay — Part 2. The movie will roll out in 86 territories globally Nov. 20, the biggest simultaneous launch in Lionsgate's history.
Timing was also a factor in television production as revenue dropped almost 21% ($32.1 million) to $122.8 million due to fewer episodic deliveries. Deliveries of the critically-acclaimed Netflix series “Orange Is the New Black,” “Nashville” and “The Royals” are expected to drive revenue growth in the second half of the year. Lionsgate continues to deepen its pipeline of original new series, including “Casual” and “Freddie Wong/RocketJump” for Hulu, “Broke” for AMC, “Guilt” for ABC Family and “Graves” for Epix.
"Although this quarter will be the lightest of the year due to timing and softer-than-anticipated performance of some of our recent film releases, our robust film and television pipelines position us for a very strong [fiscal] second half of the year," CEO Jon Feltheimer said in a statement.
Indeed, Lionsgate posted a net loss of $42.1 million on revenue of $476.8 million in the quarter, compared with net income of $20.8 million on revenue of $552.9 million a year ago.