'Hunger' for Home Entertainment Spurs Lionsgate Q2 Profit8 Nov, 2012 By: Erik Gruenwedel
Strong home entertainment sales of The Hunger Games coupled with an improved theatrical slate combined to help Lionsgate report second-quarter (ended Sept. 30) net income of $75.5 million on revenue of $707 million compared with a loss of $25.3 million on revenue of $358 million during the previous-year period.
The results reflect a dream year for Lionsgate, which has seen its stock double in value and margins expand significantly since acquiring Summit Entertainment and “The Twilight Saga” franchise coupled with the separate launch of the “Games” franchise, which has generated more than $400 million at the domestic box office.
Indeed, quarterly profit was largely attributable to the strong theatrical box office and home entertainment performance of several of the Santa Monica, Calif.-based minimajor’s film slate, including the DVD/Blu-ray Disc and digital release of “Games” and the domestic theatrical box office performance of The Possession, as well as strong international results. The studio also reported improved overall margins in the quarter.
Home entertainment revenue from both motion pictures and television was $277.8 million in the second quarter, up 59% from the prior year quarter, driven by the releases of Hunger Games, The Cabin in the Woods, What to Expect When You’re Expecting, Safe and Friends With Kids from Lionsgate’s managed brands business.
"With the home entertainment release of the first film in our ‘Hunger Games’ franchise making significant contributions to our results in the quarter, we're clearly on track to meet or exceed our expectations this year,” CEO Jon Feltheimer said in a statement.
Overall motion picture revenue for the second quarter was $608 million, an increase of 178% from the prior year quarter, reflecting gains in all categories. Within the motion picture segment, theatrical revenue in the quarter was $116.2 million, a fivefold increase from the prior year’s second quarter, attributable to the box office performance of Possession, The Expendables 2, Step Up Revolution and Madea’s Witness Protection, released in June.