Lionsgate: Smaller Release Slate Softens Home Entertainment Revenue5 Feb, 2015 By: Erik Gruenwedel
Mini-major ups Q3 profit 11% due to strong TV production revenue
A reduced theatrical and home entertainment release slate undermined Lionsgate’s third-quarter (ended Dec. 31, 2014) revenue 11% to $751.3 million, compared with revenue of $839.9 million during the previous-year period. Net income increased 11% to $98.2 million from $88.8 million — assisted in part by a 96% surge in television production revenue.
Home entertainment revenue dropped nearly 10% to $183.1 million, compared with $200.7 million in the prior-year quarter. Lionsgate attributed the decline to its release slate, which included two wide-release theatrical movies in the quarter compared to four wide-release theatrical titles in the prior-year quarter.
Motion picture revenue dropped 22% to $590.1 million. Theatrical revenue was $186.4 million from theatrical releases The Hunger Games: Mockingjay — Part 1 and John Wick, compared to a prior year quarter that included The Hunger Games: Catching Fire, A Madea Christmas, Ender’s Game and Escape Plan.
Indeed, Catching Fire ended 2014 as the No. 2 selling disc with more than 6.3 million combined DVD/Blu-ray units sold, according to TheNumbers.com. The Hunger Games: Mockingjay — Part 1 begins its home entertainment rollout on electronic sellthrough Feb. 17 and debuts on packaged media and on-demand platforms March 6.
“Our television division had another stellar quarter as it continues to emerge as a leading supplier of premium scripted content, and our film business achieved strong profitability with a diverse portfolio of films. We’re also pleased to see our digital initiatives beginning to deliver incremental revenue and profits, and we expect their contributions to continue to grow,” CEO Jon Feltheimer said in a statement.