Reduced Movie Slate Undermines Lionsgate Home Entertainment Revenue4 Feb, 2016 By: Erik Gruenwedel
Lionsgate Feb. 4 reported third-quarter (ended Dec. 31, 2015) home entertainment revenue of $142 million, down nearly 23% from revenue of $183.1 million during the previous-year period.
The Santa Monica, Calif.-based studio attributed the decline to the timing and composition of its theatrical slate. Indeed, TV programming revenue offset some of the theatrical decline, with episodic production revenue increasing 2% to $164.7 million.
Lionsgate projects season deliveries of series “Orange Is the New Black,” “Nashville” and “The Royals” should drive growth in Q4, along with the first full quarter of results from Pilgrim Studios, which Lionsgate acquired a majority stake in last November.
Motion picture revenue reached $505.8 million, compared with $590.1 million a year earlier. While theatrical revenue ($183.1 million) was comparable to the previous year ($186.4 million), margins declined due in part to theatrical P&A expenses associated with four wide film releases in the quarter compared to two wide film releases in the prior-year quarter.
Net income fell almost 66% to $32.5 million on revenue of $670.5 million, compared with revenue of $751 million a year ago.