Lions Gate Leisure Corp.’s income dropped 16% in fiscal 2021, however the Santa Monica-based studio beat Wall Road expectations.
Lionsgate reported Could 27 that it introduced in $3.27 billion in annual income, down from $3.9 billion in fiscal 2020. The corporate reported diluted earnings per share of 92 cents for the 12 months, a spike from the earlier 12 months’s earnings of 60 cents a share.
Analysts had forecasted that the corporate would herald 84 cents a share for the 12 months, in keeping with MarketWatch. Lionsgate’s shares have been priced at $18.63 at market shut on Could 27, spiking to round $19.40 throughout after-hours buying and selling.
Regardless of losses, revenues have been barely buoyed by Lionsgate’s media networks phase, which encompasses its streaming enterprise. Media networks noticed revenues rise 5% for the 12 months, from $1.49 billion in 2020 to $1.56 billion in 2021. Its income rose 12% for the quarter, from $358 million within the fourth quarter of 2020 to $401 million in 2021.
For the quarter, the corporate’s general income dipped round 7% 12 months over 12 months, from $944.3 million within the fourth quarter of 2020 to $876.4 million within the current quarter.
Chief Government Jon Feltheimer stated Lionsgate has made a “profitable pivot” to different launch methods for its content material.
The corporate positioned its bets on Starz within the current quarter, signing offers in March that may give the platform precedence entry to Lionsgate and Summit Leisure releases when their present offers with Hulu expire on the finish of 2021 and 2022, respectively.
“We enter (the 2022 fiscal 12 months) with full content material pipelines and with Starz projected to attain even higher internet subscriber provides domestically and internationally than in Fiscal 21,” Feltheimer stated within the earnings report.
Because the pandemic stalled movie manufacturing and releases, Lionsgate’s movement image phase revenues dropped 34% for the 12 months, from $1.67 billion to $1.1 billion. For the quarter, income fell greater than 25% to $292 million from $393 million.
“No one might have imagined that we might be working for many of the 12 months in a world with out film theaters,” Feltheimer stated. “We pivoted rapidly to new distribution fashions for movies.”
Tv manufacturing revenues for 2021 fell from $1 billion in 2020 to $831 million 12 months over 12 months, a drop of almost 17%. Its revenues fell 18% to $210 million for the fourth quarter from $258 million the 12 months earlier than.
Main mergers and acquisitions between tech and media firms have taken place in current weeks, such because the WarnerMedia and Discovery Inc. mixture and Amazon.com Inc.’s acquisition of Metro-Goldwyn-Mayer Studios Inc. However Feltheimer stated Lionsgate has no plans to vary possession or operations.
“With all this disruption, we have got a profit when it comes to lack of disruption right here on the firm, and our cohesiveness,” he stated. “And I feel that is the important thing factor that we’ll do, is maintain our head down and simply maintain executing on our plan.”
“The factor that we do not wish to get distracted by, frankly, is this idea of scale,” he added.
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