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Lionsgate (LGF.A) Q3 Earnings Beat Estimates, Revenues Down Y/Y
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Lionsgate (LGF.A - Free Report) reported third-quarter fiscal 2021 adjusted earnings of 21 cents per share that beat the Zacks Consensus Estimate by 23.5% and surged 50% year over year.
However, revenues decreased 16.2% year over year to $836.4 million but beat the consensus mark by 7.9%.
Segment Details
Motion Picture (29.9% of revenues) revenues decreased 47.2% year over year to $250.3 million, primarily attributed to theatre closings related to the coronavirus pandemic.
Markedly, film and television library revenues, on a trailing 12-month basis, grew to $765 million in the reported quarter.
Moreover, the Motion Picture segment generated a profit of $50 million, up 2% year over year.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Television Production (27.3% of revenues) revenues increased 20.5% year over year to $228.2 million. Segment profit was $29.5 million against loss of $5.7 million reported in the year-ago quarter.
The Media Networks segment (48.6% of revenues), formed after the acquisition of Starz, reported revenues of $406.2 million, up 6.2% year over year, driven by increased revenues from STARZPLAY International. Segment profit declined 20% to $81.7 million.
Starz Networks revenues increased 2.1% year over year to $375.3 million. STARZPLAY International revenues in the quarter surged to $17.7 million, up 190.2% year over year. Streaming services revenues soared 51.7% year over year to $13.2 million in the reported quarter.
Media Networks global subscribers, including STARZPLAY Arabia, a non-consolidated equity method investee, increased to 28 million, with global OTT subscribers increasing 900K to 14.6 million, 52% of the total.
STARZPLAY International OTT subscribers grew 26% in the quarter and domestic OTT subscribers posted solid gains of 300K.
Operating Details
Lionsgate’s adjusted OIBDA grew 7.9% year over year to $133.8 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, declined 460 basis points (bps) on a year-over-year basis to 54.9%.
Moreover, distribution and marketing expenses, as a percentage of revenues, fell 690 bps on a year-over-year basis to 21.1%.
However, general & administrative expenses, as a percentage of revenues, increased 290 bps year over year to 13.8%.
Operating income was $37.1 million in the reported quarter against loss of $39.5 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2020, Lionsgate had cash and cash equivalents of $551.5 million compared with $463.7million as of Sep 30, 2020.
Moreover, as of Dec 31, 2020, total film obligations and production loans amounted to $524 million compared with $405.2 million as of Sep 30, 2020.
Net cash outflow from operating activities was $44.2 million at the end of fiscal third quarter compared with $122 million at the end of the previous quarter and $215.9 million in the year-ago quarter.
Adjusted free cash flow was $110.7 million compared with free cash flow of $113 million in the previous quarter and $88.4 million in the year-ago quarter.
Zacks Rank & Stocks to Consider
Currently, Lionsgate carries a Zacks Rank #2 (Buy).
Take Two and Fox are set to report their quarterly results on Feb 8 and 9, respectively. TEGNA is scheduled to report the same on Mar 1.
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Lionsgate (LGF.A) Q3 Earnings Beat Estimates, Revenues Down Y/Y
Lionsgate (LGF.A - Free Report) reported third-quarter fiscal 2021 adjusted earnings of 21 cents per share that beat the Zacks Consensus Estimate by 23.5% and surged 50% year over year.
However, revenues decreased 16.2% year over year to $836.4 million but beat the consensus mark by 7.9%.
Segment Details
Motion Picture (29.9% of revenues) revenues decreased 47.2% year over year to $250.3 million, primarily attributed to theatre closings related to the coronavirus pandemic.
Markedly, film and television library revenues, on a trailing 12-month basis, grew to $765 million in the reported quarter.
Moreover, the Motion Picture segment generated a profit of $50 million, up 2% year over year.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Lions Gate Entertainment Corp. price-consensus-eps-surprise-chart | Lions Gate Entertainment Corp. Quote
Television Production (27.3% of revenues) revenues increased 20.5% year over year to $228.2 million. Segment profit was $29.5 million against loss of $5.7 million reported in the year-ago quarter.
The Media Networks segment (48.6% of revenues), formed after the acquisition of Starz, reported revenues of $406.2 million, up 6.2% year over year, driven by increased revenues from STARZPLAY International. Segment profit declined 20% to $81.7 million.
Starz Networks revenues increased 2.1% year over year to $375.3 million. STARZPLAY International revenues in the quarter surged to $17.7 million, up 190.2% year over year. Streaming services revenues soared 51.7% year over year to $13.2 million in the reported quarter.
Media Networks global subscribers, including STARZPLAY Arabia, a non-consolidated equity method investee, increased to 28 million, with global OTT subscribers increasing 900K to 14.6 million, 52% of the total.
STARZPLAY International OTT subscribers grew 26% in the quarter and domestic OTT subscribers posted solid gains of 300K.
Operating Details
Lionsgate’s adjusted OIBDA grew 7.9% year over year to $133.8 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, declined 460 basis points (bps) on a year-over-year basis to 54.9%.
Moreover, distribution and marketing expenses, as a percentage of revenues, fell 690 bps on a year-over-year basis to 21.1%.
However, general & administrative expenses, as a percentage of revenues, increased 290 bps year over year to 13.8%.
Operating income was $37.1 million in the reported quarter against loss of $39.5 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2020, Lionsgate had cash and cash equivalents of $551.5 million compared with $463.7million as of Sep 30, 2020.
Moreover, as of Dec 31, 2020, total film obligations and production loans amounted to $524 million compared with $405.2 million as of Sep 30, 2020.
Net cash outflow from operating activities was $44.2 million at the end of fiscal third quarter compared with $122 million at the end of the previous quarter and $215.9 million in the year-ago quarter.
Adjusted free cash flow was $110.7 million compared with free cash flow of $113 million in the previous quarter and $88.4 million in the year-ago quarter.
Zacks Rank & Stocks to Consider
Currently, Lionsgate carries a Zacks Rank #2 (Buy).
TEGNA (TGNA - Free Report) , Take Two Interactive (TTWO - Free Report) and Fox Corporation (FOXA - Free Report) are some of the top-ranked stocks in the broader Consumer & Discretionary sector. While TEGNA sports a Zacks Rank #1 (Strong Buy), both Take Two and Fox carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Take Two and Fox are set to report their quarterly results on Feb 8 and 9, respectively. TEGNA is scheduled to report the same on Mar 1.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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