Lions Gate Entertainment Reports Slight Revenue Decline in Q3 Fiscal 2025

Lions Gate Entertainment Corp. reported a slight decline in revenue for the third quarter of fiscal 2025, with total revenues of $970.5 million, down from $975.1 million in the same period last year. The company's net loss attributable to shareholders was $21.9 million, or $0.09 per share, significantly improved from a net loss of $106.6 million, or $0.45 per share, in the prior year. The results reflect a notable increase in revenue from the Television Production segment, which rose 62.9% to $404.6 million, largely due to the inclusion of revenue from the recently acquired eOne business. Conversely, the Motion Picture segment saw a 30.2% decline in revenue to $309.2 million, attributed to lower theatrical and international revenues compared to the previous year.

In terms of operational changes, Lionsgate completed the acquisition of Entertainment One (eOne) on December 27, 2023, which has since contributed approximately $126.9 million to the Studio Business revenues for the quarter. The company also executed a significant restructuring plan within its Media Networks segment, which included exiting most international markets, resulting in a $72.7 million decrease in Media Networks revenue. The restructuring efforts have led to a cumulative impairment charge of $735.1 million since the plan's inception.

The company’s total assets increased to $7.17 billion as of December 31, 2024, compared to $7.09 billion at the end of the previous fiscal year. However, total liabilities also rose to $7.32 billion, up from $7.28 billion, primarily due to increased debt levels. Lionsgate's total debt, excluding film-related obligations, stood at $2.56 billion, with a significant portion attributed to the eOne acquisition and ongoing production financing.

Looking ahead, Lionsgate anticipates continued challenges in the Motion Picture segment due to competitive market conditions and the impact of its restructuring initiatives. The company is also in the process of separating its Studio Business from its STARZ business, a move that is expected to enhance operational focus and financial performance. The proposed separation is subject to various conditions and may affect the company's future financial outlook, depending on market conditions and execution challenges.

Overall, while Lionsgate's financial performance shows signs of recovery in certain segments, the company remains cautious about the broader economic environment and its impact on future operations.