We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lionsgate (LGF.A) Q3 Earnings Lag Estimates, Revenues Up Y/Y
Read MoreHide Full Article
Lionsgate .A) reported third-quarter fiscal 2020 adjusted earnings of 14 cents per share, which missed the Zacks Consensus Estimate by 36.4% and declined 60% on a year-over-year basis.
Revenues increased 7% year over year to $998.5 million and beat the consensus mark by 7.8%.
Segment Details
Motion Picture (47.5% of revenues) revenues increased 30.7% year over year to $473.9 million on solid contributions from theatrical releases, including Knives Out, and continued performance of John Wick: Chapter 3 – Parabellum.
Moreover, the Motion Picture segment raked in a profit of $49 million, up 12.6% year over year.
Television Production (19% of revenues) revenues declined 12.5% year over year to $189.4 million. Segment loss was $5.7 million against a profit of $21.2 million in the year-ago quarter.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
The Media Networks segment (38.3% of revenues), formed after the acquisition of Starz, reported revenues of $382.4 million, up 4.3% year over year. Segment profit declined 23.9% to $102.1 million due to the ongoing investments in STARZPLAY.
Starz Networks revenues rose 1.7% year over year to $367.6 million. STARZPLAY International revenues in the quarter were $6.1 million compared with $0.6 million in the year-ago quarter. Streaming services revenues surged 85.1% year over year to $8.7 million.
At the end of the quarter, Starz had 28.5 million total global subscribers (from Starz, STARZPLAY Arabia and PANTAYA), up 2.1 million year over year. Global OTT subscribers reached 8.6 million
Total Media Networks domestic subscribers declined 1.2 million year over year to 24.1 million.
Operating Details
Adjusted OIBDA decreased 27.7% year over year to $124 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, expanded 580 basis points (bps) on a year-over-year basis to 59.5%.
Moreover, distribution and marketing expenses, as a percentage of revenues, expanded 900 bps on a year-over-year basis to 28%.
However, general & administrative expenses, as a percentage of revenues, contracted 90 bps on a year-over-year basis to 10.9%.
Operating loss was $39.5 million in the reported quarter against an operating profit of $86.8 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2019, cash and cash equivalents were $195.5 million compared with $232.6 million as of Sep 30.
Moreover, as of Dec 31, total film obligations and production loans amounted to $286.8 million compared with $480.2 million as of Sep 30.
Net cash flow from operating activities was $215.9 million at the end of the reported quarter, much higher than $181.2 million in the previous quarter.
Adjusted free cash flow was $88.4 million compared with free cash flow of $61.1 million in the previous quarter.
Outlook
Lionsgate expects STARZPLAY international subscriber growth between 15 million and 25 million over the next five years.
Zacks Rank & Key Picks
Currently, Lionsgate carries a Zacks Rank #4 (Sell).
While Cable One is set to report quarterly results on Feb 27, both Casa Systems and ViacomCBS will report on Feb 20.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.7% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Lionsgate (LGF.A) Q3 Earnings Lag Estimates, Revenues Up Y/Y
Lionsgate .A) reported third-quarter fiscal 2020 adjusted earnings of 14 cents per share, which missed the Zacks Consensus Estimate by 36.4% and declined 60% on a year-over-year basis.
Revenues increased 7% year over year to $998.5 million and beat the consensus mark by 7.8%.
Segment Details
Motion Picture (47.5% of revenues) revenues increased 30.7% year over year to $473.9 million on solid contributions from theatrical releases, including Knives Out, and continued performance of John Wick: Chapter 3 – Parabellum.
Moreover, the Motion Picture segment raked in a profit of $49 million, up 12.6% year over year.
Television Production (19% of revenues) revenues declined 12.5% year over year to $189.4 million. Segment loss was $5.7 million against a profit of $21.2 million in the year-ago quarter.
Lions Gate Entertainment Corp. Price, Consensus and EPS Surprise
Lions Gate Entertainment Corp. price-consensus-eps-surprise-chart | Lions Gate Entertainment Corp. Quote
The Media Networks segment (38.3% of revenues), formed after the acquisition of Starz, reported revenues of $382.4 million, up 4.3% year over year. Segment profit declined 23.9% to $102.1 million due to the ongoing investments in STARZPLAY.
Starz Networks revenues rose 1.7% year over year to $367.6 million. STARZPLAY International revenues in the quarter were $6.1 million compared with $0.6 million in the year-ago quarter. Streaming services revenues surged 85.1% year over year to $8.7 million.
At the end of the quarter, Starz had 28.5 million total global subscribers (from Starz, STARZPLAY Arabia and PANTAYA), up 2.1 million year over year. Global OTT subscribers reached 8.6 million
Total Media Networks domestic subscribers declined 1.2 million year over year to 24.1 million.
Operating Details
Adjusted OIBDA decreased 27.7% year over year to $124 million in the reported quarter.
Direct operating expenses, as a percentage of revenues, expanded 580 basis points (bps) on a year-over-year basis to 59.5%.
Moreover, distribution and marketing expenses, as a percentage of revenues, expanded 900 bps on a year-over-year basis to 28%.
However, general & administrative expenses, as a percentage of revenues, contracted 90 bps on a year-over-year basis to 10.9%.
Operating loss was $39.5 million in the reported quarter against an operating profit of $86.8 million in the year-ago quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2019, cash and cash equivalents were $195.5 million compared with $232.6 million as of Sep 30.
Moreover, as of Dec 31, total film obligations and production loans amounted to $286.8 million compared with $480.2 million as of Sep 30.
Net cash flow from operating activities was $215.9 million at the end of the reported quarter, much higher than $181.2 million in the previous quarter.
Adjusted free cash flow was $88.4 million compared with free cash flow of $61.1 million in the previous quarter.
Outlook
Lionsgate expects STARZPLAY international subscriber growth between 15 million and 25 million over the next five years.
Zacks Rank & Key Picks
Currently, Lionsgate carries a Zacks Rank #4 (Sell).
Casa Systems , ViacomCBS and Cable One (CABO - Free Report) are better-ranked stocks in the broader Consumer & Discretionary sector. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While Cable One is set to report quarterly results on Feb 27, both Casa Systems and ViacomCBS will report on Feb 20.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.7% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>