Lionsgate Studios Reports $713.8 Million Revenue, Net Income Recovery in Latest Quarter

Lionsgate Studios Corp. reported a total revenue of $713.8 million for the three months ended December 31, 2024, reflecting a 3.2% increase from $691.6 million in the same period last year. The revenue growth was primarily driven by a significant increase in the Television Production segment, which saw revenues rise by 62.9% to $404.6 million, largely due to the inclusion of revenues from the recently acquired eOne business. In contrast, the Motion Picture segment experienced a decline of 30.2%, generating $309.2 million, attributed to lower theatrical and international revenues compared to the previous year, which had benefited from the release of major titles such as "The Hunger Games: The Ballad of Songbirds & Snakes."

In terms of profitability, Lionsgate Studios reported a net income of $6.4 million for the quarter, a notable recovery from a net loss of $41.1 million in the prior year. This turnaround was supported by a substantial increase in operating income, which rose to $49.6 million from $7.3 million a year earlier. The company attributed this improvement to a reduction in total expenses, which decreased by 2.9% to $664.2 million, despite an increase in direct operating expenses related to the Television Production segment.

The company has undergone significant strategic changes, including the acquisition of eOne, which was finalized on December 27, 2023, and the completion of a business combination with Screaming Eagle Acquisition Corp. in May 2024. This transaction resulted in approximately $330 million in gross proceeds, including $254.3 million from private investments in public equity (PIPE). The acquisition of eOne is expected to enhance Lionsgate's film and television library and strengthen its scripted and unscripted television business, particularly in Canada and the U.K.

Operationally, Lionsgate Studios has seen fluctuations in its customer engagement metrics. The company reported a decrease in customer counts for its Motion Picture segment, while the Television Production segment benefited from increased viewership and licensing revenues. The company also noted a significant increase in its investment in films and television programs, which rose to $2.46 billion as of December 31, 2024, compared to $1.93 billion at the end of the previous fiscal year. This increase reflects the company's ongoing commitment to content creation and acquisition.

Looking ahead, Lionsgate Studios expressed cautious optimism about its future performance, emphasizing the importance of cash flow from operations and access to capital markets to support its production and marketing efforts. The company plans to continue leveraging its credit facilities and exploring additional financing options to fund its growth initiatives. However, it acknowledged potential risks related to market conditions, competition, and economic uncertainties that could impact its operations and financial results in the coming quarters.