Despite the lack of major blockbusters during the industry-wide crisis in the second quarter of 2024, Lionsgate managed to reduce its losses in its latest quarterly report released on Thursday.
Lionsgate reported a first-quarter cash inflow of $834. 7 million, an equivalent profit of $18. 8 million and a loss of $59. 4 million, representing a diluted loss of 25 cents consistent with the stake. In the second quarter of 2023, Lionsgate reported a $70. 7 million cash loss of $908. 6 million.
Lionsgate adjusted net income source attributable to Lionsgate shareholders in the quarter $20. 9 million, or nine cents adjusted diluted net income source consistent with the interest, beating Zacks Investment Research’s guidance of 2 cents consistent with the interest.
“We are pleased to report a strong quarter despite unprecedented disruption to the industry and the fallout from strikes,” CEO Jon Feltheimer said in a statement.
Lionsgate’s studio business reported earnings of $588. 4 million, down 5. 9% from the same quarter a year earlier. This decline is due to a 15% drop in profits in the film division, to $347. 3 million.
While the segment’s profit rose 24% due to decreased production and marketing expenses, total cash fell due to a lack of good luck at the primary box office compared to last year’s “John Wick: Chapter 4. ” , with the studio’s highest-grossing film at the box office. “The Strangers: Chapter 1” with $43. 5 million in international revenue.
The TV department saw the opposite trend, with segment profit falling 53% but overall cash up 10%. Lionsgate says that cash “was boosted by eOne’s contributions, while segment earnings expansion was impacted by the lingering effects of the strike on the delivery schedule in a delayed year. “
This is Lionsgate’s first earnings report since Lionsgate Studios’ debut as an independent, publicly traded company on NASDAQ, formed by combining Lionsgate’s studio operations with the Screaming Eagle SPAC. The studio, which includes Lionsgate’s film and television activities as well as a library of more than 20,000 titles, has been spun off from its streaming service, Starz.
Lionsgate Studios shares even held steady at $7. 25 per share on Thursday at the time of writing.